Angela Norman, managing director of YBS Commercial Mortgages, reflects on resilience, competition, digital transformation, and navigating the commercial mortgages market in 2025 and beyond.

The mortgage market has faced no shortage of challenges in 2025. From persistent inflationary pressures to sluggish economic growth, the wider UK economy has tested the resilience of lenders, brokers, and borrowers alike this year. Yet, despite these headwinds, the sector has demonstrated its ability to adapt, evolve, and deliver for brokers and customers.

In the commercial lending space, uncertainty around interest rates has weighed heavily on investor confidence. Many investors have adopted a “wait‑and‑see” approach, perhaps delaying decisions hoping for rates to fall further. This cautious sentiment has inevitably dampened demand, affecting the rhythm of the market. For lenders, this has meant navigating the reduced appetite but also finding ways to reassure landlords and investors and demonstrate their value.

Another notable development this year has been the resurgence of the high street banks in the commercial lending market. Their renewed presence has intensified competition, creating a more dynamic environment for brokers and customers. This competition is healthy, and ensures that brokers and borrowers have greater choice, compelling lenders to sharpen their service and offerings. Differentiation has become more critical than ever, with service quality, product innovation and digital capabilities emerging as key battlegrounds.

At YBS Commercial Mortgages, we’ve spent this year focussing on growth in areas where we know we can have the greatest impact, with service as our cornerstone. By blending digital innovation with the human touch provided by our teams, we’ve created a customer journey that is faster, smoother, and more supportive. Examples of this include cutting response times to initial case requests from 48 hours to just 24; introducing a 24‑hour decision‑in‑principle (DIP) and committing to defined SLAs such as offer letters within 30 days of application. These enhancements are more than operational wins; they are proof points of our commitment to delivering on our promises, responding to feedback and building trust with our broker partners, and there’s more to come. 

We’ve also concentrated on product enhancement and development. The launch of our fast‑track buy‑to‑let product last month is a prime example of this. Designed for straightforward deals, it provides a tailored solution that meets the evolving needs of the market, ensuring our propositions are finely tuned to broker and customer needs where possible. 

At the same time, we’ve invested heavily in digital capabilities. Enhancements to our broker portal have streamlined applications, improved flexibility, and reduced friction for brokers and their clients, with scope to add new features and capabilities in the future. This has allowed us to build stronger foundations while staying agile.

Looking ahead, our ambitions for 2026 are bold - deepening our presence in existing markets and reducing handoffs in the customer journey to create a seamless experience, as well as leveraging digital enhancements to drive operational efficiency, freeing up colleagues to focus on the value‑added work. 

Digital tools will also remain central to our strategy, enabling us to enhance broker support and service, whilst combining technology with the human touch we’re known for.

As part of Yorkshire Building Society, we are uniquely positioned to leverage our collective knowledge and experience. This gives us the ability to drive meaningful change in the housing market, not just for our customers and brokers, but for the industry as a whole, helping to shape the future of the sector.

The commercial mortgage landscape is evolving rapidly, and those who embrace change will lead the way. By responding to feedback, investing in the right tools, and staying true to our service promises to our brokers and customers, I’m confident that next year will be one of growth, innovation and impact, and I’m looking forward to it. 

In the meantime, I’d like to wish you all a Merry Christmas and a Happy New Year!