The Growth Series

Podcast #59 - The lowdown on commercial lending


In episode 59 of the Growth Series podcast, Mike Davies, Head of Development at Yorkshire Building Society (YBS), is joined by Haydn Thomas, Chief Commercial Officer at Cornerstone Finance Group. In this episode, Mike and Haydn discuss commercial lending, the impact of Covid-19 and where the market is headed next.

Mike kick-starts the conversation by asking Haydn to introduce himself and explain what the commercial market is, for listeners. Haydn states that, while there are different definitions depending on the bank or organisation, to him and Cornerstone, it’s all about the small and medium sized businesses looking at commercial premises and supporting acquisitions.

The pair go on to explore trends in the market, such as the uptick in businesses looking to move away from renting and toward purchasing. Haydn suggests that this is less related to Covid-19 and more likely a response to the previous financial crisis. They also look at the role that banks stepping away from a relationship model has played in buyers seeking help from brokers.

Read more: How brokers can thrive by putting clients first

From there, Mike and Haydn discuss the way that the pandemic has impacted both Cornerstone directly and the market as a whole. They touch on the acceleration of digital transformation and the use of technology within the sector. Haydn also discusses the need that Cornerstone had to diversify their offering. The two continue to examine key changes in terms of the increase in ‘stay-cations,’ the changes to Buy-to-Let taxation, and social care.

Mike then asks Haydn to offer his predictions for the commercial market for 2021 and beyond. Haydn sees great potential in property from retail and pubs that may not have survived multiple lockdowns, social housing and holiday let possibilities. 

Haydn rounds things out by sharing his best advice for brokers who are looking to enter the world of commercial lending. He advises that existing relationships, enduring patience and significant funding are all very important. Haydn then goes on to share his appreciation of the relationship between Cornerstone and YBS.

The Growth Series is a dedicated resource that aims to help mortgage brokers grow their business using digital and communications marketing techniques. For more hints and tips on how to grow your business, you can sign up to the Growth Series for free, here.

1.24 - 45.25 discuss:

  • Introduction to Haydn
  • What is the commercial market?
  • The trend of moving from renting to buying
  • The role of banks moving from a relationship model
  • What Cornerstone looks for in a lender
  • How the pandemic impacted Cornerstone
  • The increase in stay-cations
  • Trends in the wider Buy-to-Let market
  • What the market holds for 2021 and beyond
  • Cornerstone’s growth plans
  • Advice for brokers entering the commercial market
  • Joys and challenges in commercial finance

Learn more: Podcast #35 - Buy-to-Let in 2020, what’s in it for brokers?

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