Commercial Mortgage Refinance

Refinancing a commercial mortgage can be advantageous, though should be approached with due care and consideration.

Whatever your motivations for considering a commercial refinance, we can provide the independent advice you need to make the right decision for your business.

What is a Commercial Refinance?

Across the United Kingdom, businesses of all shapes and sizes are constantly on the lookout for affordable and accessible ways to free up money and improve cash flow. From essential equipment purchases to office expansions to raising capital for on unmissable investment opportunities, a little extra capital at the right time really can go a long way.

An increasingly popular option for accessing substantial amounts of money is choosing commercial mortgage refinance. A comparatively affordable and accessible option, refinancing provides access to additional cash by extending (or replacing) an existing mortgage with a larger loan.

In doing so, the business can access the money it needs for almost any purpose, without incurring excessive additional monthly expenses.

How Does Commercial Mortgage Refinancing Work?

The basic principles behind commercial mortgage refinance is relatively simple. The applicant applies for a new loan to pay off their existing commercial mortgage, typically with an excess left over to be used to cover purchases or outgoings.

Applicants have the choice of applying for these ‘commercial mortgage extensions’ with their current lenders or go elsewhere to find a more competitive deal.

This is one of many reasons why it pays to work with an independent broker, who can compare the whole market for an unbeatable deal.

Why do Businesses Apply for Refinance Loans?

There are many reasons why businesses consider refinancing:

  • To switch to a more competitive deal at a lower rate of interest
  • To free up cash for other purposes
  • To reduce monthly repayments by extending the loan term

Technically speaking, it is possible to use the money generated with a commercial mortgage refinance for any legal purpose whatsoever. However, it is important to consider all applicable borrowing costs, interest payments and general liabilities, before refinancing commercial property.

What Are the Pros and Cons of Refinancing?


One of the biggest advantages of refinancing a commercial property is the opportunity to access a more competitive deal at a lower rate of interest. In doing so, you could significantly reduce your monthly outgoings and your total outstanding mortgage debt.

In addition, refinancing is considered a simple and affordable way of tapping into some equity you have tied up in your commercial property. If your business is asset-rich but comparatively cash-poor, accessing a chunk of the money you have tied up in your property could make all the difference.

Particularly where important purchases and investments are concerned, refinancing could help you access the money you need to grow and expand your business.


On the downside, all forms of debt you take on is an additional expense for your business. By refinancing your current mortgage over a longer period, it may take you longer to repay your debts.

Switching to a more competitive deal is possible, though may incur additional borrowing costs that you’ll be expected to cover, including broker fees, valuation fees, legal fees and so on, all of which vary significantly from one lender to the next.

Depending on your requirements, you may also find a specialist funding solution like bridging finance more suitable. Prior to applying for a commercial mortgage refinance, speak to an independent broker to discuss all available options.

Application Process

Once you have decided that refinancing is the way to go, the first step is to book an obligation-free consultation with an independent broker. You will have the opportunity to discuss your requirements and the available options in an objective and pressure-free environment.

Consulting with an independent broker enables you to establish your eligibility for the various financial products available. Particularly if you have an imperfect credit history or other issues with your financial track-record, you will find the input and expertise of an experienced broker invaluable. Your broker will carry out a whole of market search in order to find the best deal available.

Call anytime to book your free initial consultation with a member of our team.