Commercial Remortgage Guide 2026

A commercial remortgage replaces the loan on your business premises or investment property with a new one, either with your current lender or a new one. People do it to get a better rate, change the term, release money or refinance a bridging loan once a project is done.

Commercial remortgages take longer than residential ones. There is a commercial valuation, more paperwork and usually a solicitor for the lender too. Start four to six months before your current deal ends and you keep your options open.

This guide covers when to remortgage, raising capital, early repayment charges, documents and costs. For the bigger picture, see our commercial mortgage guide.

Can you remortgage a commercial property?

Yes. Most commercial lenders will refinance up to 60% to 75% of the current value, as long as your business profits or rent cover the payments. You can stay with your current lender or move. Check your early repayment charges first, because on commercial loans they can be large.

Why do people remortgage commercial property?

Your fixed rate or term is ending
A better rate or longer term to cut monthly payments
Raising money for expansion, equipment or another property
Changing structure, for example moving from personal to company ownership
Refinancing bridging once a refurbishment or letting is finished

What do lenders check?

	Owner-occupied	Investment
Income	Latest accounts and management figures	Current rent, lease terms and tenant
Cover	Profits against payments	Rent against payments
Property	Commercial valuation	Commercial valuation, often on yield
You	Experience, credit, other borrowing	As owner-occupied

Which situations do lenders see most?

These are illustrative situations, not Option Finance client outcomes.

Fixed rate ending

Your deal ends in six months. Compare your lender’s offer with the market before you sign.

Start early and compare

Raising money to grow

The premises have gone up in value. Lenders look at whether profits cover a bigger loan.

Show what the money is for

Coming off bridging

The works are done or the unit is let. A term lender replaces the bridge.

Plan this before you take the bridge

Trading dipped last year

One weak year can reduce what lenders offer. Waiting for better accounts may help.

Timing can change the answer

How much capital can you raise?

Lenders usually lend up to 60% to 75% of the current value. If the property has gone up in value or you have paid part of the loan off, you may be able to release money. The lender will ask what it is for.

Illustration only

A business owns premises now valued at £500,000, with £180,000 left on the mortgage. A new lender offering 65% would lend £325,000, releasing about £145,000 before fees, as long as the business’s profits cover the higher payments.

What about early repayment charges?

Many commercial loans have early repayment charges, often on a sliding scale. Check whether it is cheaper to wait, or whether a second charge loan could raise the money without touching the first mortgage. See our commercial second charge guide.

What documents do you need?

Two to three years of business accounts and recent management accounts
Current mortgage statement and the early repayment charge terms
For let property: leases, rent schedule and tenant details
Details of other property and borrowing
What any extra money is for

The lender’s solicitor will check the title. You can see what is registered against your property through HM Land Registry.

Is a commercial remortgage regulated?

Usually not. It is only likely to be regulated if you or close family live in at least 40% of the property, as set out in PERG 4.4 of the FCA Handbook. That mostly affects shops with flats where the owner lives upstairs. See our semi-commercial mortgage guide.

How long does it take and what does it cost?

Allow 6 to 12 weeks. Budget for:

Arrangement fee, often 1% to 2% of the loan
Commercial valuation
Legal fees, yours and the lender’s
Any early repayment charge

Frequently asked questions

Can I remortgage a commercial property to release equity?

Often, up to around 60% to 75% of the current value, if your income covers the higher payments.

How long does a commercial remortgage take?

Usually 6 to 12 weeks. Start four to six months before your current terms end.

Will my current lender offer a new deal?

Often, yes. Compare it with the market, as other lenders may offer better terms or more borrowing.

Do I need a new valuation?

Usually. Commercial lenders instruct a commercial surveyor, which you pay for.

Can I remortgage to pay off a bridging loan?

Yes. That is the most common exit from bridging, once the works are finished or the property is let.

Will one weak year of trading stop me remortgaging?

Not always, but it can reduce what lenders offer. Sometimes waiting for the next set of accounts helps.

Speak to Option Finance about your commercial borrowing

Tell us about the property, your current loan and what you want to achieve. We will compare your lender’s offer with the market and tell you straight whether to stay, move or wait.

Book a free initial consultation using the enquiry form below. See also our commercial mortgage advice and remortgage guide.

Some buy-to-let and commercial mortgages are not regulated by the Financial Conduct Authority. Regulation depends on the mortgage type and circumstances.

Important information

Commercial mortgages are usually not regulated by the Financial Conduct Authority.

Figures are illustrations, not quotes. Lender criteria change often.

Your home may be repossessed if you do not keep up repayments on your mortgage. This guide is general information, not a personal mortgage recommendation.

How to Remortgage a Commercial Property