News

Appetite Remains strong despite headwinds.

In the last two weeks, there has been a noticeable shift in sentiment across the commercial and specialist property finance market. Clients who were previously content to wait for the “right moment” are now accelerating purchases and refinancing plans, anticipating what many believe could be a period of heightened uncertainty. At Omega, we are working at pace to ensure we can meet every client’s requirement without compromise.

There are of course significant unknowns and no one truly knows where rates will be in 3 months’ time, or whether there will be an impact to lender risk appetite, however our message right now is simple: get your deals done. With inflationary pressures building and lenders reacting to global instability, the window for securing competitive pricing is narrowing.

Lenders Pull Fixed Rates as Market Tensions Rise

Last week marked a turning point, lenders began withdrawing sub-4% fixed-rate products or issuing notice that these rates were under imminent review. The Bank of England’s decision to hold the base rate has done little to calm the waters; instead, lenders are signalling that the lowest fixed rate options may no longer be sustainable as we see a number being pulled and re-priced.

It’s important to note, not all however.

The ongoing conflict in the Middle East is deepening concerns about inflationary shocks, energy price volatility, and supply chain disruption. As long as these geopolitical forces remain unresolved, lenders will continue to price on risk and that means potential for upward pressure on rates.

This week, the average two-year fixed mortgage rate climbed to 4.99%, up from 4.79% just days earlier. Meanwhile, the five-year cost of funds jumped by 50bps in the space of a week, a sharp reminder of how quickly conditions can shift.

The property market is now bracing for what could be a year defined by rising interest rates and persistent inflationary headwinds. This may not come to pass, but economic sentiment is certainly suggesting such.

Why Early Conversations Are Important

In fast-moving markets, hesitation can be costly. Securing competitive pricing and low margins requires early engagement and decisive action. Our role is to navigate this volatility on your behalf, leveraging lender appetite and relationships, structuring deals efficiently, and ensuring clients are not caught out by sudden product withdrawals or repricing.

Despite the turbulence, it is very much business as usual at Omega. Lenders remain active, and strong opportunities still exist for well-prepared borrowers. We have had recent success in securing commercial mortgages for doctors and other trading businesses. Even in a tightening market, we are securing exceptional outcomes for our clients: 

Recent Case Studies: Appetite Remains Strong

These examples demonstrate whilst there may be uncertainty, and we’ve seen rates rising in the last week, lenders are far from retreating. The key is moving quickly and giving our introducing partners and networks the advantage of our close relationships with established lenders.

Its evident geopolitical uncertainty is having an impact on the commercial finance and specialist property market, early engagement with our team, however, ensures you can refinance, raise capital or secure commercial mortgage deals for your clients.

These deals are supported by our professional service so please contact us today via our website or over the phone 0333 6000 007 to secure rates.