The commercial mortgage market remains firmly rooted in relationships, despite the growing influence of artificial intelligence, according to two senior figures in the sector.

Speaking on the latest episode of Accord Mortgages’ Growth Series podcast, Mike Davies, head of lending at YBS Commercial Mortgages, joined Matthew Martin, director at Align Property Finance, to assess the shifting dynamics of commercial lending and the pressures shaping the market.

The podcast is part of Accord’s free Growth Series, which offers brokers a wide range of educational material, from marketing and business planning to regulatory and economic updates.

Martin outlined the philosophy behind Align, a three-strong boutique brokerage built on banking experience and long-term client stewardship. Rather than focusing on transactional volume, he said the firm places emphasis on deep market insight and ongoing support.

“At Align, we act as our clients’ trusted advisers who understand the bigger picture” he said.

He added that commercial deals require early identification and mitigation of risk, with careful structuring essential to maintaining trust and achieving sustainable results. That often includes providing assistance that brings in no direct revenue, such as managing complaints on a client’s behalf or helping them to source legal representation.

“It’s all about being there for the client, way beyond the deal,” he said.

Davies and Martin also examined the resilience of the commercial market, picking out HMOs as an illustration of how landlords are adapting. Conversions into HMOs are growing as landlords look to maximise yields, while a sector once associated with poor standards is increasingly defined by higher quality and professional management.

Technology’s rise — particularly the use of AI — formed a key part of the discussion. Martin accepted that automation can help streamline administrative work but warned that its role has limits.

“AI can support efficiencies, but what it cannot do is replace the human touch – relationships remain at the heart of commercial lending, especially because of the complex nature of many of the deals we see.

“The bottom line is that technology and AI can help us to do our jobs better, getting a better result for the client – but there are limitations, and some jobs that will always need to be undertaken by a person.”

Looking ahead, Martin said the market has weathered a run of shocks — from Brexit to Covid and rising interest rates — and that stability will be crucial for investors and borrowers.

Davies, who hosted the episode, said the conversation reflected themes affecting the entire industry. “It’s always fascinating to hear these views on the market, especially on topics that affect us all, such as the impact of AI.

“It’s reassuring to see that there is a recognition that relationships and human connection are still so important in the sector.

“This is another great addition to the Growth Series library, and I’m sure many advisers will benefit from the insight and knowledge it provides.”