Quick answer: Refinancing a commercial mortgage means replacing your current loan with a new one, to move onto better terms, replace an expiring fixed rate or release equity to reinvest in the business or buy another property. Lenders assess the property, the income and your credit file afresh, and any early repayment charge on the existing loan should be checked first. Most straightforward cases complete in six to twelve weeks.

Last reviewed: 29 October 2026. Written by Jaff Sadi, founder and Managing Director of Sadi's Commercial Finance, an NACFB and FIBA member firm based in Chingford, East London.

Why refinance a commercial property?

  • Better terms. Moving to a lender whose terms suit your property and circumstances.
  • An expiring fixed rate. Replacing a fixed rate that is about to end before the loan reverts to a variable rate.
  • Releasing equity. Raising capital against the property to reinvest in the business or buy another property.
  • Changing the structure. Moving the loan into a limited company or SPV, or from interest only to repayment or the reverse.

Check the early repayment charge first

Fixed rate products usually carry an early repayment charge, and it can be substantial. Variable products are often more flexible. Check the terms of your existing loan before you commit, and consider whether waiting until the fixed period ends makes sense.

What lenders look at

  • The property. Type, condition, location, tenure and how easily it could be sold.
  • The income. Trading profit for owner-occupiers, or rental income for investments, tested against the new payment.
  • The borrower. Experience, credit history, existing borrowing and the structure holding the property.
  • The purpose. Why you are refinancing and, if you are releasing equity, what the money will be used for.

What to prepare

  • Details of your existing loan, including the balance, the term and any early repayment charge
  • Two to three years of filed accounts and up to date management figures
  • Tenancy agreements and a rent schedule on an investment property
  • Identification and address verification for all directors and shareholders
  • Details of how any released funds will be used

What affects the cost

We cannot quote a single rate, because lenders price each case individually. Pricing depends on the property, the amount you want to raise, the loan to value, the strength of the income and the credit file of the borrower and any guarantors. Costs to plan for beyond interest include a lender arrangement fee, a valuation fee and legal fees on both sides. We normally charge a broker fee (our own fee for arranging your finance), but we are not charging it until January 2027 as part of a promotional offer.

How long does it take?

A straightforward case commonly completes in six to twelve weeks from application. Valuation and legal work are the usual bottlenecks. Starting well before a fixed rate ends helps avoid reverting to a variable rate.

How to refinance a commercial property with Sadi's Commercial Finance

  1. Speak to a specialist. Tell us about the property, your existing loan and why you want to refinance.
  2. Share the numbers. Provide details of the existing loan, accounts or tenancy details and the structure holding the property.
  3. Get matched with a lender. We approach suitable lenders from our panel and secure an Agreement in Principle.
  4. Valuation and legal work. The lender instructs a valuation while solicitors work in parallel, including redeeming the existing loan.
  5. Offer and completion. The new loan completes, the existing loan is repaid and any released funds are paid to you.

Why use a broker

Lenders differ widely on property type, structure and credit. Approaching the wrong lender costs you weeks and can leave a footprint on your credit file. Jaff Sadi spent more than 25 years inside UK high street and commercial banking before founding the firm, so we know how a case needs to be built and presented to get through credit. We compare lenders across a panel of more than 300 UK lenders.

Ready to talk? Speak to a specialist, see our commercial mortgages page, or read How to Get a Commercial Mortgage in the UK.

Frequently asked questions

Can I refinance an existing commercial property?

Yes. Refinancing can move you onto better terms, replace an expiring fixed rate, or release equity to reinvest in the business or buy another property.

Can I release equity from a commercial property?

Often yes. A lender will assess the property, the income and the purpose of the funds, and the amount available depends on the lender and the case.

Is there a charge for repaying my commercial mortgage early?

Fixed rate products usually have an early repayment charge, and it can be substantial. Variable products are often more flexible. Check the terms of your existing loan before you commit.

When should I start refinancing before my fixed rate ends?

Starting well before the fixed period ends gives time for valuation and legal work, which are the usual bottlenecks, and helps you avoid reverting to a variable rate.

Can I refinance into a limited company or SPV?

Often yes, though the structure affects which lenders can help, and there may be legal and tax consequences. Speak to your solicitor and accountant as well as your broker.

How long does a refinance take?

A straightforward case commonly takes between six and twelve weeks from application.

Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Figures and timescales on this page are indicative and are confirmed only in a lender's formal offer.