Q1 2026: Momentum, Complexity, and the Growing Role of the Broker
The first quarter of 2026 has been anything but straightforward.
On the surface, the numbers look strong. Broker-led SME lending reached £33 billion in 2025, up 25% year-on-year, with intermediaries playing a more central role than ever before.
But behind that growth sits a more nuanced story — one shaped by uncertainty, shifting lender appetite, and a rate environment that continues to keep everyone on their toes.
The Rate Story: Stability… With a Question Mark
Over the past 18–24 months, we’ve seen a sharp rise in both Bank of England base rate and SONIA, followed by a period of relative stability.
But stability doesn’t always mean certainty.
Even as rates have plateaued, lenders remain cautious. Funding lines are priced carefully, margins are protected, and forward-looking risk is being scrutinised more than ever.
The result?
- Pricing is not always falling as quickly as borrowers expect
- Credit committees are taking a more conservative view
- Deals that “should” work don’t always fit first time
This isn’t a broken market – it’s a measured one.
Uncertainty Is Driving Behaviour
What we’re seeing now is less about where rates are today, and more about where they might go.
- Inflation hasn’t fully settled
- Economic growth remains uneven
- Global pressures continue to feed into UK lending markets
For lenders, that creates a natural hesitancy.
And when lenders hesitate, criteria tighten, structures change, and pricing becomes more selective.
Where Brokers Add Real Value
This is exactly why the £33bn figure matters.
Because it isn’t just growth — it reflects a shift in how deals are getting done.
- Brokers are reviewing multiple lenders per deal
- A significant portion of clients have already been declined elsewhere
- Funding is increasingly being structured, not just sourced
In a more uncertain environment, the role of a broker moves from optional to essential.
It’s no longer just about access to finance. It’s about understanding lender appetite, positioning deals correctly, and navigating complexity.
A More Mature Lending Market
There’s a tendency to view tougher conditions negatively.
But there’s another way to look at it.
What we’re seeing now is a market that has matured:
- Less reliance on cheap, easy money
- More focus on sustainability and affordability
- Better alignment between lender and borrower expectations
Businesses are still investing. Lenders are still lending.
But both sides are doing so with more discipline.
A Strong Start – With More to Come
Despite the headwinds, Q1 has been positive.
Demand remains strong. Opportunities are still there. And importantly, deals are still completing.
If anything, the environment is reinforcing the value of experience and skill so far as brokers are concerned.
Looking Ahead
As we move into Q2, one thing is becoming increasingly clear:
The complexity isn’t going away — but neither is the opportunity.
For businesses, the challenge is navigating that complexity. For lenders, it’s deploying capital responsibly.
And for brokers, it’s about sitting right in the middle — making sense of both sides.
At Orca Finance, we’re seeing this every day. More moving parts, more conversations, more structure — but ultimately, better outcomes when things are done properly.
Because in this market:
It’s not just about getting funding. It’s about getting the right funding, in the right way.
If your business needs finance for assets, cashflow, working capital, property or vehicles then get in touch with Orca today – it starts with a simple conversation…
Data source – https://nacfb.org/broker-led-sme-lending-surges-to-33bn-as-intermediaries-cement-central-role/
