Specialist Commercial Mortgage Broker

Commercial Property Refinance Better Rates, Released Equity, Improved Terms

Refinancing your commercial property can help you secure lower interest rates, release equity for reinvestment, or restructure your loan on more favourable terms. Whether you own offices, retail, industrial property, or a mixed portfolio, our specialist brokers compare refinancing deals across 100+ lenders to find the best option for your circumstances.

From 6.25%

Interest rate

Up to 75%

Loan-to-value

1-25 years

Mortgage term

£50,000

Minimum loan

What Is Commercial Property Refinancing?

Refinancing a commercial property means replacing your existing mortgage or loan with a new one, typically to secure lower interest rates, release equity, restructure the loan term, or change repayment arrangements. A commercial refinance (also known as a commercial remortgage) involves the lender paying off your existing loan and issuing a new one on revised terms.

Refinancing commercial property is one of the most common transactions we handle at CMB. Whether you are considering refinancing to take advantage of lower interest rates, to raise capital against your property portfolio, or to consolidate multiple loans into a single facility, our broker team navigates the process on your behalf. Business owners, investors, and landlords across the UK use commercial property refinancing to optimise their financial position.

A tool worth revisiting regularly

Commercial property refinancing is one of the most effective financial tools available to property owners. The UK commercial mortgage market is competitive, with new lenders and products entering the market regularly. This means that even if you secured a competitive deal when you originally purchased your property, better terms may now be available. Our broker team continuously monitors the commercial mortgage market and proactively identifies refinancing opportunities for our clients. We handle refinancing transactions ranging from £50,000 to £50m+ across all commercial property types.

Why Refinance Your Commercial Property?

There are several compelling reasons to refinance your commercial property. Securing lower interest rates is the most common motivation, if rates have fallen since you took out your existing loan, refinancing can reduce your monthly costs significantly. Other reasons include: releasing equity for new commercial property investment, improving cash flow by extending the loan term, switching from a variable to a fixed rate (or vice versa), and restructuring loan agreements to better suit your current refinancing needs.

The refinancing process for commercial real estate typically takes 6-12 weeks, depending on the lender and the complexity of the transaction. Your property value may have increased since the original purchase, allowing you to access better terms or borrow additional funds. A property valuation will be commissioned as part of the process.

For business owners occupying their own premises, refinancing can free up cash flow for business growth. For investors, it can fund portfolio expansion. Our team provides property finance solutions tailored to every type of property and refinancing scenario.

Weighing the true cost of switching

The decision to refinance should consider several factors beyond just the interest rate. Remaining early repayment charges on your existing loan, the total fees associated with the new facility, and any changes in your circumstances or the property situation should all be evaluated. Our team provides a comprehensive cost-benefit analysis for every refinancing enquiry, modelling the total savings over the new loan term against the upfront costs of switching. In many cases, the savings from even a modest rate reduction far outweigh the transaction costs, particularly on larger loan amounts. We also consider the opportunity cost of not refinancing, if your existing rate is significantly above current market rates, every month of delay represents lost savings.

For business owners occupying their own premises, refinancing can also be an opportunity to restructure the mortgage to better align with current business performance and future plans. This might include extending the term to reduce monthly costs, switching from capital repayment to interest-only (or vice versa), or raising additional funds for business investment secured against the property equity.

The rate on the screen is not the saving. A refinance only pays when the reduction over the new term clears the early repayment charge and the switching fees, which is why a half-point cut on a large loan can beat a full point on a small one. The balance, not the headline, decides.

The Commercial Property Refinancing Process

Refinancing commercial property involves several key stages: initial assessment, lender selection, application, due diligence, legal work, and completion. Our broker team manages each stage to ensure a smooth refinancing transaction.

The lender will commission a property valuation to confirm the current market value. Your solicitor, or the commercial property solicitors we can recommend, will handle the legal transfer, property searches, land registry updates, and ensuring all legal requirements are met. Due diligence checks include reviewing the lease (if applicable), obtaining gas and electrical certificates, and confirming there are no title issues.

The borrower needs to provide financial statements, bank statements, details of the existing loan, and information about the property including any lease arrangements. Depending on the lender, personal guarantees may be required. Our real estate team and legal advice partners ensure every aspect of the refinancing is handled professionally. The loan amount and repayment structure are agreed before completion.

Due diligence and lease requirements

The due diligence requirements for commercial property refinancing can be extensive, particularly for properties that have been held for several years since the last mortgage. Lenders may require updated environmental searches, building condition surveys, asbestos reports, fire risk assessments, and evidence of compliance with current building regulations. For leasehold properties, the lease terms and remaining duration are critical, most lenders require a minimum unexpired lease term of 25-40 years, depending on the property type. Our team coordinates all aspects of the due diligence process, working with your solicitor, the lender legal team, and specialist surveyors to ensure a smooth and timely transaction.

  • Financial statements: two to three years of accounts showing the property and business performance.
  • Bank statements: recent statements evidencing income and the servicing of the existing loan.
  • Existing loan details: the current balance, rate, term, and any early repayment charges.
  • Lease information: for let or leasehold property, the lease terms and unexpired duration.
  • Property valuation: a lender-instructed valuation confirming the current market value.
  • Compliance certificates: gas, electrical, and where required fire risk and condition reports.
  • Repayment plan: your exit or repayment strategy, and personal guarantees where a lender asks.

Commercial Property Refinance: Rates, Terms, and Costs

Commercial mortgage refinance rates typically range from 6.25% to 8.00%, depending on the lender, LTV, type of property, and borrower credit history. Lenders who lend on refinancing look for a clear picture of the property's performance and your ability to repay the new loan.

Costs include: arrangement fee (1-2% of the loan amount), valuation fee (£1,500-£5,000), solicitor fees for both the borrower and lender (£2,000-£6,000), and bank transfer fees. Early repayment charges on your existing loan may also apply if you are still within a fixed-rate period. Favourable terms on the new loan should outweigh any early exit costs on the old one.

Mortgage offers for refinancing typically have loan terms of 1-25 years. Both capital repayment and interest-only structures are available. The new lender takes a first charge over the property, paying off the existing creditor. Our broker team ensures you access the best commercial property refinancing rates across our panel of 100+ lenders.

Portfolio consolidation options

For portfolio owners with multiple commercial properties, refinancing can be an opportunity to rationalise lending arrangements. Consolidating multiple mortgages with different lenders into a single portfolio facility can reduce administrative complexity, improve pricing through volume discounts, and provide a single point of contact for your lending relationship. Alternatively, some portfolio owners prefer to spread their borrowing across multiple lenders to reduce concentration risk. Our team advises on the optimal lending structure for your portfolio, balancing cost efficiency with risk management and operational simplicity.

Refinance scenarioTypical rate (pa)Max LTVTerm
Rate switch to better terms6.25% to 7.50%75%5 to 25 years
Equity release or capital raise6.50% to 8.00%75%5 to 25 years
Portfolio consolidation6.25% to 7.75%75%5 to 25 years
Expiring fixed, seamless switch6.25% to 7.50%70%5 to 25 years
Bridge-to-term (rate gap cover)8.50% to 10.50%70%6 months to 2 years
On a large commercial loan, even a modest rate cut compounds. Start the switch 3 to 6 months before your fixed rate expires and you avoid slipping onto the lender standard variable rate, which typically sits 2% to 4% higher. Ask us to time it for you.

Why Choose CMB to Refinance a Commercial Property?

To refinance a commercial property on the best terms, you need a specialist broker with access to the full UK lender market. At CMB, we compare mortgage offers from high-street banks, challenger banks, specialist commercial lenders, and private finance providers. Our real estate team, led by Matt Lenzie with his background in corporate banking at Lloyds Bank and Bank of Scotland, brings institutional-quality legal advice and finance expertise to every refinancing transaction.

Whether you are refinancing a single commercial property or an entire property portfolio, we handle every aspect of the process. For time-sensitive refinancing, for example, when an existing fixed rate is expiring, a bridging loan can bridge the gap while longer-term finance is arranged. We also advise on the optimal business plan to present to lenders and can recommend trusted commercial property solicitors.

Contact us to discuss your refinancing needs, or use our calculator to estimate the costs and savings of refinancing your commercial property. We provide free initial consultations with no obligation.

Timing the switch around rate expiry

Timing is important in commercial property refinancing. Starting the process 3-6 months before your existing fixed rate expires gives you the best chance of achieving a seamless transition without reverting to the lender standard variable rate (which is typically 2-4% above fixed rates). For borrowers already on a variable rate or who have passed their initial fixed period, refinancing can happen at any time without early repayment charges. Our team sets reminders for clients approaching rate expiry and proactively initiates the refinancing conversation to ensure no one pays more than they need to.

Refinancing your commercial property is one of the smartest financial moves a property owner can make, and with CMB, the process is straightforward.

“Most owners refinance too late. I tell clients to start three to six months before their fixed rate ends, because the standard variable rate they roll onto is usually two to four points higher, and that gap dwarfs any arrangement fee. The other number that matters is the early repayment charge on the existing loan: on a large balance, a half-point cut can save more than a full point on a smaller one. I run the full arithmetic before anyone commits.”
ML

Matt Lenzie

Founder & Principal Broker, Commercial Mortgages Broker

Frequently Asked Questions

Can I remortgage my commercial property?

Yes. Commercial property refinancing (remortgaging) is straightforward and very common. You can refinance to secure better rates, release equity, extend the loan term, or restructure your existing borrowing.

What is the 2% rule for refinancing?

The 2% rule suggests refinancing is worthwhile when you can reduce your interest rate by at least 2%. However, for commercial mortgages, even a 0.5 to 1.0 percentage point reduction can generate significant savings on larger loan amounts. Always calculate the total cost including fees.

What is the 80/20 rule in refinancing?

The 80/20 rule refers to aiming for a maximum 80% loan-to-value ratio when refinancing. For commercial property, most lenders cap at 75% LTV. The lower your LTV, the better the rates typically available.

What is the biggest problem in commercial real estate?

Common challenges include fluctuating property values, interest rate changes, tenant vacancy risk, and refinancing at the end of fixed-rate periods. Working with an experienced broker helps navigate these challenges and secure the best refinancing terms.

How long does commercial property refinancing take?

Typically 6-12 weeks from initial enquiry to completion. The timeline depends on the complexity of the property, the due diligence required, and how quickly documentation is provided.

What documents do I need to refinance commercial property?

You will need: current mortgage details, property information including any leases, financial statements (2-3 years), bank statements, identification, and details of your exit strategy. Gas and electrical certificates for the property may also be required.

Related Pages

Commercial Mortgage RatesInterest-Only Commercial MortgageOwner-Occupied Commercial MortgageCommercial Mortgage CalculatorCommercial Bridging Loans

Key Concepts

RefinancingLoanBankMortgage

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