Commercial Remortgage London
Refinancing existing commercial mortgages: moving lender at the end of a five-year fix, releasing capital from an appreciated asset, or moving from specialist pricing back to mainstream once trading has stabilised. Whole-of-market benchmark across 90+ lenders. Loan-to-value to 75%, interest rates 6.0 to 8.0% pa, 5 to 25 year repayment terms.
LTV
Up to 75%
Rate
6.0 to 8.0% pa
Term
5 to 25 years
Facility
£250K to £15M
What does refinancing a commercial mortgage actually involve?
Commercial remortgage covers two distinct moments. End of fix: a typical five-year fixed-rate facility matures and you transition into a new rate environment, either through a product transfer with the same lender or a full refinancing to a new one. Capital-raise refinancing: releasing equity from a property that has grown in value since the original draw, where the increased loan amount funds an onward acquisition, business growth or working capital. Both are routine in the London commercial market.
The first conversation is always early repayment charge handling. If you are inside an ERC window the maths often still works, because saving a point on rate over a fresh five-year term can outweigh the charge. On a £2M facility, a 1.0% rate saving over three years is £60,000 against an ERC of 2% at £40,000. We run the numbers both ways before recommending the move, and where it is close we hold the deal until the window opens. Some lenders will offset ERC against new arrangement fees as a competitive incentive, and we know which.
For end-of-fix transitions the underwriting story is usually clean: the asset is income-producing, the borrower has a repayment track record, the lender has comfort. This is where London borrowers gain most, because more desks will quote on a stabilised London asset than on an equivalent anywhere else in the country, and that competition is real rather than theoretical. NatWest, Lloyds, Barclays, Santander, Shawbrook, Allica, Hampshire Trust, Cambridge and Counties, Handelsbanken and InterBay Commercial all compete hard on clean London remortgage business. Even a 50bps move on a £2M facility saves £10,000 a year, and interest rates currently run 6.0 to 8.0% pa.
For capital-raise refinancing, the test is the use of funds plus the new ICR, DSCR or EBITDA cover at the higher loan amount. Common use cases: the deposit on the next acquisition, a working capital injection into the trading business, a partner buy-out, a refurbishment programme, or cross-collateralisation across a small portfolio. Where funds are released from an investment property the deal is unregulated commercial lending, and where the borrower is a sole trader using the property partly as a residence the deal can fall inside the Financial Conduct Authority's regulated mortgage perimeter, which we flag at outset and refer to a regulated firm. We do not hold FCA authorisation because the products we arrange are unregulated. Stamp duty does not apply on a refinance, unlike a fresh purchase, because there is no transfer of beneficial ownership.
From existing facility review to redemption and drawdown
1. Existing facility review
Current interest rate, ERC window, maturity date and redemption schedule. New ICR, DSCR or EBITDA cover modelled at multiple lender stress rates.
2. Whole-of-market benchmark
Five to eight lenders shortlisted across high-street, challenger and specialist desks. Indicative terms in 48 hours.
3. ERC modelling
Cost of the break against the benefit of the new interest rate over the remaining fix. Where it is close, we hold the deal until the ERC window opens.
4. Application packaging
Standard credit pack: accounts, leases where the asset is let, property file, borrower SPV or limited company pack. Cleaner than a fresh acquisition.
5. RICS Red Book valuation
The existing valuation is not portable. A fresh RICS valuation is instructed by the new lender, typically 2 to 3 weeks.
6. Completion and redemption
The existing facility is redeemed from the new draw and the charge is updated at Land Registry. 4 to 6 weeks total typical from start to drawdown.
Borrowers most likely to benefit from refinancing now
- Borrowers approaching the end of a five-year fix within the next 6 to 12 months
- Owner-occupier businesses where trading is now stronger and supports better repayment terms
- Commercial investment landlords whose London assets have appreciated since acquisition
- Limited company SPV portfolios consolidating individual mortgages into a single facility
- Borrowers releasing equity for an onward acquisition, partner buy-out or expansion
- Operators moving from high-cost specialist pricing back to mainstream after stabilisation
- Borrowers whose existing lender has changed appetite or withdrawn the product
Why London refinancing volume is running high in 2026
With the Bank of England base-rate trajectory through 2026 looking flatter than the 2023 and 2024 cycle, refinancing demand across London is strong, particularly on assets drawn between 2019 and 2021 where current valuations support a better loan-to-value than the original facility. London gives the borrower an advantage the rest of the country does not have: on a stabilised asset here, five to eight desks will genuinely quote, and the spread between the keenest and the least keen is wide enough to be worth an afternoon of benchmarking. Shawbrook, Allica, Hampshire Trust, Cambridge and Counties and Recognise are the most aggressive challenger desks competing for clean London remortgage business. NatWest, Lloyds and Barclays run dedicated commercial remortgage propositions on the high-street side, Santander is competitive above £2M, and Handelsbanken engages where the relationship is local and long-running. Volume is broad-based across central London offices, Canary Wharf and City fringe stock, and semi-commercial books across east and south London. Where the existing first charge sits on a competitive 2019 to 2021 legacy rate of 3.5 to 4.5% and breaking it would cost more than the saving, see our second-charge commercial mortgage route instead.
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