Nearly a fifth of UK commercial property loans are due to mature this year, and for many owners, refinancing in 2026 will look very different to the last time they went through the process.
The latest Bayes Business School review estimates that £33 billion of property loans, roughly 19% of all outstanding commercial real estate debt, will be coming up for refinance this year. This is happening at a time when the lending landscape has shifted.
A different market to refinance into
For years, UK banks were the default source of commercial property finance, but that’s no longer the case. The bank’s market share has fallen from 40% to 36% over the past year, while debt funds (private investment funds that lend directly to businesses, rather than taking deposits like a bank) and other alternative lenders have expanded to fill the gap, growing their share from 12% to 28%.
If you’re a property owner whose loan is due for renewal, this matters. The lender who provided the original finance may not be offering the best (or even a competitive) rate today. More lenders are active in the market, which is good news for choice, but it also means more products, more criteria, and more work to find the right fit.
Why refinancing early makes a difference
With so much debt maturing in the same 12-month window, lenders’ capacity and appetite may shift depending on how the year plays out. Leaving refinancing until close to your loan’s maturity date could mean fewer options, less negotiating power, and less time to deal with unexpected issues such as a valuation coming in lower than hoped, a change in the property’s income, or a lender pulling back from a particular sector.
Looking at your options early gives more room to manoeuvre. It allows time to compare lenders properly, address any figures that might need context (such as a temporary dip in occupancy, a one-off cost, or a change of tenant), and secure terms before the wider wave of refinancing activity puts pressure on rates and lender capacity.
What this means in practice
If your commercial property loan is due to mature in the next 12 to 18 months, it’s worth reviewing your position now rather than waiting for a lender’s renewal letter to land.
Questions worth asking include:
- Is your current lender still competitive, or has the market moved on since you last borrowed?
- Has anything changed in the property’s performance or your own financial position that a new lender would need context on?
- Are there alternative lenders, including debt funds or specialist lenders, who might offer better terms or more flexibility than a traditional bank?
A broker who understands the market can help answer these questions properly and match your situation with lenders who are actively looking to lend in your sector, rather than assuming your existing bank is still the best (or only) option.
Get ahead of the wave
The scale of refinancing due over the next 12 months indicates an active and competitive commercial property lending market. If your loan matures this year, getting ahead of the process gives you the best chance of securing the right terms, rather than reacting under pressure.
If your commercial property loan is coming up for renewal, get in touch with one of our local experts to talk through your options.
This is definitely coming down the track, so get ready!
