Whether a fixed rate is ending, a bridging loan needs an exit or you simply want to use the equity in your premises, we compare lenders to find a refinance that fits your plans.
Nexgen Business Finance Limited is a credit broker, not a lender, and an Appointed Representative of AFS Compliance Limited, authorised and regulated by the Financial Conduct Authority (FRN 625035).
Commercial property refinance means replacing the borrowing on a business property with a new loan, or borrowing against a property you own outright, to reduce costs, change the terms or raise capital. The property is security, so it may be repossessed if repayments aren't kept up.
There are usually three reasons a business comes to us. A fixed or initial rate is ending and the current lender's offer doesn't look competitive. A short-term facility, such as a bridging loan used to buy or refurbish a building, needs repaying with longer-term finance. Or the business owns premises with significant equity and wants to put some of it to work, for example to buy out a partner, invest in equipment or replace more expensive short-term debt.
Freehold property is often the strongest security a business has, which is why property-backed borrowing can be available when unsecured lenders have declined or offered too little. Lenders still look carefully at affordability: for owner-occupied premises, that's your trading profit; for investment property, it's usually the rent and the quality of the tenant and lease.
We are a credit broker, not a lender. We'll look at the property, the existing loan and any early repayment charges, and what you want to achieve, then compare lenders on our panel. If you're buying a property rather than refinancing, see commercial mortgages.
Compare the market before a fixed or initial rate ends rather than drifting onto a lender's follow-on rate.
Move a refurbished or newly let building from short-term bridging onto a longer-term loan.
Release equity from premises you own to fund growth, a buyout or other investment.
Refinance the whole loan, or raise extra behind your existing lender where that's more cost-effective.
Lenders assess your trading or the rental income, depending on how the building is used.
Several properties with different lenders can sometimes be brought under one facility.
| Like-for-like remortgage | Remortgage with capital raising | Second charge loan | |
|---|---|---|---|
| What happens | New lender repays the old loan | New lender repays the old loan and advances extra | New lender lends behind the existing mortgage |
| Existing mortgage | Repaid | Repaid | Stays in place |
| Early repayment charges | May apply on the old loan | May apply on the old loan | Usually avoided |
| Existing lender's consent | Not needed once repaid | Not needed once repaid | Often needed |
| Typical use | Better terms at the end of a deal | Releasing equity for investment | Raising funds mid-term without breaking a good deal |
Commercial lenders usually instruct an independent valuation, often from a RICS-registered valuer working to the RICS Red Book standards for secured lending, and the borrower typically pays for it. They'll also review the title. HM Land Registry's title register shows the owner and any restrictions, such as one preventing further borrowing without an existing lender's consent, while charges created by a limited company must be registered at Companies House.
Budget for valuation, legal fees on both sides, a lender arrangement fee and any early repayment charge on the current loan. We'll help you set those against the saving or the capital you're raising, so the decision is based on the whole picture.
If the building includes living space, such as a shop with a flat above, check how it's used. Under FCA rules, a loan to an individual or trustees secured on land where at least 40% is used as or in connection with a dwelling by the borrower or a related person can be a regulated mortgage contract, which has different rules and protections. We'll establish this with you at the start.
Information checked on . General information only, not financial, legal or tax advice. Finance is subject to status and lender approval.
Real funding stories from businesses we have worked with.
How a UK window & door business secured its operational base with the right finance. Real premises funding case study from Nexgen Business Finance
Read the full story →Historical outcomes do not guarantee similar finance terms or results.
A two-minute enquiry or a quick call.
Matched to high-street, specialist and niche lenders.
Options and terms, often within hours.
E-sign and funds are released.
Same account manager for future funding.
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Ideally three to six months before a fixed rate or bridging term ends. Valuations and legal work take time, and starting early means you're not forced onto a follow-on rate or into extending an expensive bridge.
Often, yes. Lenders will value the property and lend a proportion of that value, subject to affordability. The money can typically be used for most legitimate business purposes, but the property becomes security for the loan.
It may be possible, as some specialist lenders place more weight on the property and the overall story. Expect fewer options and potentially higher costs, and be ready to explain what happened and how trading has recovered.
It can be if your current mortgage has a competitive rate or a large early repayment charge, because you leave it in place. Second charge borrowing usually costs more than first charge lending, and your existing lender's consent is often needed.
Yes, many lenders work with limited companies and special purpose vehicles. Directors and shareholders are usually asked for personal guarantees.
No. Nexgen Business Finance is a credit broker, not a lender. We compare lenders on our panel and support you through the process, and every lending decision is made by the lender.
Not quite the right fit? We arrange every major type of business finance and can compare options side by side for you.
Buy or refinance business premises and commercial investment property over the long term.
Find out moreCommercial mortgages, bridging loans and development finance.
Find out moreShort-term property-secured funding for auctions, quick purchases and refurbishments.
Find out moreBorrow larger sums over longer terms using property equity as security.
Find out moreReplace several loans or cash advances with one facility and one monthly payment.
Find out moreStaged funding for new builds, conversions and heavy refurbishments.
Find out moreNot sure which is right for you? Tell us what you need and we'll recommend the best option.
Find out why lenders say no, how to appeal, the Bank Referral Scheme and why asset refinance may still raise funds.
Read the guideHow PGs work, what you could be liable for, how to limit the risk and questions to ask before you sign.
Read the guideSee how lenders size loans from turnover, profit, assets and invoices, with typical UK ranges.
Read the guideTwo minutes online, no obligation, and no effect on your credit score. A specialist will come back with real options from 100+ lenders.
