Refinance an existing commercial mortgage to lower your rate, switch lender, release equity or restructure the loan. Whole-of-market access and ex-banker structuring.
A commercial remortgage replaces your existing commercial mortgage with a new facility, either with the same lender or by switching. It is the single most consequential financial decision a UK commercial property owner makes over the life of an asset. Get the timing right and you secure better terms, release equity, or de-risk against rate volatility. Get it wrong and you sit on uncompetitive rates, miss capital-raising windows, or trip into expensive product fees and early repayment charges.
The most common remortgage trigger is the end of a fixed-rate period. Most UK commercial mortgages run on fixed-rate periods of two, three or five years before reverting to a variable rate tied to Bank of England Base Rate or SONIA. The reversion rate is almost never competitive, so disciplined borrowers begin reviewing options six months before the fixed period ends. Starting late means paying reversion-rate interest during the gap, which on a £1m loan can cost £4,000 to £8,000 per month in unnecessary interest.
Equity release is the second major remortgage trigger. Where capital values have grown materially since the original purchase, or where active asset management has improved net rent and lease length, the property may now support a larger loan. We routinely arrange remortgages that release £200,000 to £3m of equity to fund deposits on additional acquisitions, finance refurbishment programmes, inject working capital, or take cash off the table after a successful value-add play. The new lender re-bases LTV against the current valuation, and released equity is paid to the borrower at completion.
Lender-driven remortgages are increasingly common. The post-2022 rate environment saw several mainstream commercial lenders tighten policy, reduce LTV ceilings on certain asset classes (particularly secondary offices), and decline renewal of facilities that would happily have been written three years earlier. Where your incumbent will not renew, or offers terms materially worse than market, we move you to a lender who actively wants the asset class.
Restructuring is the fourth angle. Common restructuring objectives include moving from amortising to interest-only to free up cash flow, switching the other way to amortise ahead of a planned sale, lengthening or shortening the fixed-rate term, consolidating multiple property loans into a single portfolio facility, and removing a personal guarantee where covenant has strengthened. Each of these requires a specific lender appetite, not every lender will offer interest-only, not every lender will release a personal guarantee.
Early repayment charges and product fees are the most overlooked costs. Many fixed-rate commercial mortgages carry tiered ERCs (typically 5% in year one, falling 1% per year), payable on full or partial redemption during the fixed period. A premature remortgage can therefore cost the borrower 2-3% of the loan balance in ERCs alone, wiping out the rate saving from switching. We model the all-in cost of staying versus switching at each potential trigger date, so the decision is made on numbers rather than on the headline rate.
From initial enquiry to completion, here is what to expect at every stage.
Switch lenders or renegotiate with your incumbent at the end of a fixed-rate period. Avoid the reversion-rate cliff by starting the process 6 months before the fix matures. Ex-banker pre-positioning ensures the cleanest credit case at the right tier of lender.
Release capital from a commercial property where value has grown since purchase. Typical net release £200k-£3m on an LTV recalculation against the new valuation. Released equity funds further acquisitions, capex, working capital, or cash extraction.
Change the shape of the debt, interest-only to amortising or vice versa, fixed to floating, single loan to portfolio facility, or remove a personal guarantee. Each restructure has different lender appetite. We match the new structure to the lenders most willing to write it.
Review the existing facility, identify the trigger (rate maturity, equity release, lender switch, restructure), model staying-vs-switching costs, and confirm the strategy. Done 6 months before any fix-end date.
Pre-position the case across the right lender tier (high street, challenger or specialist) based on asset type and structure. Indicative terms received within 5-10 working days.
Full application with up-to-date accounts, property schedule, current leases, ALI statements for guarantors. Lender-ready package eliminates back-and-forth.
New RICS commercial valuation (2-4 weeks). Solicitor obtains redemption statement from incumbent, prepares discharge and new charge. Inter-creditor consents where second charges exist.
New lender funds the redemption of the existing loan, registers new charge, and pays released equity to borrower. Existing facility discharged the same day. Total typical timeline 6-12 weeks.
Review the existing facility, identify the trigger (rate maturity, equity release, lender switch, restructure), model staying-vs-switching costs, and confirm the strategy. Done 6 months before any fix-end date.
Pre-position the case across the right lender tier (high street, challenger or specialist) based on asset type and structure. Indicative terms received within 5-10 working days.
Full application with up-to-date accounts, property schedule, current leases, ALI statements for guarantors. Lender-ready package eliminates back-and-forth.
New RICS commercial valuation (2-4 weeks). Solicitor obtains redemption statement from incumbent, prepares discharge and new charge. Inter-creditor consents where second charges exist.
New lender funds the redemption of the existing loan, registers new charge, and pays released equity to borrower. Existing facility discharged the same day. Total typical timeline 6-12 weeks.
The right scenarios, the right features, the right fit for your requirements.
Your 2, 3 or 5-year fixed period is approaching its end and you want to lock in the next cycle on the best available terms before the loan reverts to a higher variable rate.
Capital values have moved up since purchase or active asset management has improved value. Refinance against the higher valuation and release equity for further investment or capex.
Your incumbent has declined renewal, exited the sector, or offered uncompetitive terms. Move to a lender who actively wants the asset class and execute before the existing facility expires.
You acquired with a short-term bridging loan, completed the value-add (refurb, let-up, change of use), and now need to refinance onto stabilised long-term debt before the bridge expires.
Move from amortising to interest-only, consolidate multiple property loans into a single portfolio facility, or restructure the term to match a planned exit.
Transparent pricing and an honest comparison with alternative options.
| Component | Range |
|---|---|
| New Lender Interest | 5.95% - 7.5% |
| Lender Product Fee | 1% - 2% |
| Broker Fee | 0.5% - 1% |
| New Valuation | £1,500 - £5,000+ |
| Lender Legal | £2,500 - £5,000+ |
| Your Solicitor | £2,500 - £5,000+ |
| Existing Lender ERC | 0% - 5% |
In-depth articles to help you make informed decisions
Expert guide to remortgaging commercial property. When to refinance, step-by-step process, costs involved, and how to secure better terms on your commercial mortgage.
When and how to remortgage your commercial property. Rate savings, equity release, switching lenders, and early repayment charges.
Understand fixed, variable and tracker commercial mortgage rates. How rates are set, what affects your rate, and how to secure the best deal.
Everything you need to know about commercial remortgage.
Six to twelve weeks from formal application to drawdown is the typical range, with straightforward cases at the short end and complex structures taking longer. The valuation alone takes 2-4 weeks, legal title review another 3-5 weeks, and lender credit decisioning 1-3 weeks. We recommend starting the remortgage process at least six months before any fixed-rate end date, so the new facility is in place the day the existing one reverts to a higher variable rate.
Six months before the end of your current fixed-rate period is the optimal window. Earlier than that and the formal valuation may go stale; later than that and you risk paying reversion-rate interest during the gap. If your trigger is equity release rather than rate maturity, start as soon as you have a clear use of funds, the current valuation is the binding constraint and sets the timeline.
Technically yes, but most fixed-rate commercial mortgages carry early repayment charges that taper from typically 5% in year one down 1% per year. We model the all-in cost, ERC plus product fees plus legal costs minus interest savings, to see whether switching makes financial sense. Where the rate gap is wide enough and there are 12+ months left on the fix, the math sometimes works. Where the gap is narrower or the fix is nearly over, waiting is usually the right call.
Released equity equals the new lender's maximum loan minus the redemption figure on your existing loan, minus the costs of switching. On a standard commercial investment property at 75% LTV with current valuation of £2m, that's a £1.5m maximum loan; if your existing balance is £1m, the gross release is £500k less roughly £25k of switching costs, so net £475k. Specialist sectors typically cap at 70% LTV; some lenders cap at 65%. The new loan must still pass the lender's ICR and DSCR stress tests at the larger amount.
Almost always yes. Most lenders require a valuation no more than 3 months old at drawdown, and the valuation must be addressed to the new lender (existing lender valuations typically can't be transferred). Some lenders accept a desktop or drive-by valuation for low-LTV remortgages on standard residential investment property, but full RICS valuations are the norm for commercial.
Yes, SPV-held commercial property is one of the most common remortgage structures we arrange. Most challenger and specialist commercial lenders are SPV-friendly. The underwriting reviews the SPV's accounts (usually limited filed accounts plus a property schedule), the rental income, and personal guarantees from the directors. Loan documentation is more involved than for personally-held property because of the inter-creditor and security structuring.
It depends how far. If the LTV would still be within the new lender's ceiling at the lower valuation, the remortgage proceeds normally, just without equity release. If the valuation drop is severe enough that the new loan would breach LTV (e.g. 80%+ LTV on a 75% LTV product), you have three options: put cash in to bring LTV down, accept higher pricing from a specialist lender willing to write higher LTV, or stay with your incumbent. We model all three and recommend based on your wider position.
Yes, restructuring the repayment basis is one of the most common remortgage objectives. Most commercial lenders offer both options. Moving to amortising increases monthly payments but reduces the loan balance over time, which derisks a planned future sale or exit. Moving the other way (amortising to interest-only) reduces monthly cost and frees up cash flow but leaves the full balance to repay at term end, so you need a clear exit plan.
Yes. Even on remortgages where you've been with the same lender for 5 years, the new application requires up-to-date filed accounts, management accounts to most recent quarter, and (for owner-occupied) a current trading update. The full borrower-strength assessment is repeated, same as a fresh purchase application, because the lender is making a fresh credit decision against current criteria.
Sometimes, where the underlying covenant has strengthened materially since the original loan and the LTV is conservative. The trigger conditions vary by lender but typically include 5+ years of clean payment history, LTV at or below 60%, strong DSCR, and an SPV with substantial standalone net worth. We know which lenders will entertain a no-PG remortgage and which won't. Removing the PG comes at a cost, typically a 25-50bps margin uplift, so the trade-off needs to be weighed against the value of the cover removed.
Six to twelve weeks from formal application to drawdown is the typical range. The valuation alone takes 2-4 weeks, legal title review 3-5 weeks, and lender credit decisioning 1-3 weeks. Start at least six months before any fixed-rate end date so the new facility is in place the day the existing one reverts to a higher variable rate.
Six months before the end of your current fixed-rate period is optimal. Earlier than that and the formal valuation may go stale; later than that and you risk paying reversion-rate interest during the gap. If your trigger is equity release rather than rate maturity, start as soon as you have a clear use of funds, the current valuation sets the timeline.
Technically yes, but most fixed-rate commercial mortgages carry early repayment charges that taper from typically 5% in year one down 1% per year. We model the all-in cost, ERC plus product fees plus legal costs minus interest savings, to see whether switching makes financial sense. Where the rate gap is wide enough and 12+ months remain on the fix, the math sometimes works.
Released equity equals the new lender's maximum loan minus the redemption figure on your existing loan minus switching costs. On a standard commercial investment property at 75% LTV with a current £2m valuation, that's a £1.5m maximum loan. If your existing balance is £1m, the gross release is £500k less roughly £25k of switching costs, so net £475k. Specialist sectors typically cap at 70% LTV.
Almost always yes. Most lenders require a valuation no more than 3 months old at drawdown, and the valuation must be addressed to the new lender, existing lender valuations typically can't be transferred. Some lenders accept a desktop valuation for low-LTV remortgages on standard residential investment property, but full RICS valuations are the norm for commercial.
It depends how far. If the LTV would still be within the new lender's ceiling at the lower valuation, the remortgage proceeds normally, just without equity release. If the valuation drop is severe enough that the new loan would breach LTV, you have three options: put cash in to bring LTV down, accept higher pricing from a specialist lender willing to write higher LTV, or stay with your incumbent. We model all three.
Yes, restructuring the repayment basis is one of the most common remortgage objectives. Most commercial lenders offer both options. Moving to amortising increases monthly payments but reduces the loan balance over time, which de-risks a planned future sale. Moving the other way reduces monthly cost and frees up cash flow but leaves the full balance to repay at term end.
Sometimes, where the underlying covenant has strengthened materially since the original loan and the LTV is conservative. Typical trigger conditions: 5+ years of clean payment history, LTV at or below 60%, strong DSCR, and an SPV with substantial standalone net worth. We know which lenders will entertain a no-PG remortgage and which won't. Removing the PG often comes at a 25-50bps margin uplift, so the trade-off needs weighing.
Led by Matt Lenzie, ex-Lloyds Bank & Bank of Scotland, with direct lending and credit committee experience.
Access to an extensive panel of specialist lenders across banks, challengers, and private credit funds.
Operating to the highest professional and ethical standards with full transparency on fees, terms, and lender recommendations.
Deep experience across commercial mortgages, bridging, and development finance for clients nationwide.
With a career spanning Lloyds Bank, Bank of Scotland, and a partnership in a corporate finance business, Matt brings institutional-grade expertise to every commercial remortgage deal. Currently a board advisor to a pension administrator and trustee with £3.9bn of assets under advisory, Matt has raised over £300m of capital for property professionals across the UK.
This direct lending experience means we understand precisely what lenders want to see in a commercial remortgage application, how credit committees assess risk, and where to position a deal for the best possible outcome.
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