Good news for property investors with lending rates reducing for commercial and residential investments, our latest finance update covers:
Lending costs at the start of 2026 are the friendliest for property investors and developers for the past three years. A combination of reducing base and swap rates, combined with a number of lenders significantly reducing their interest margins, are seeing all-in rates reaching more palatable costs for investors and developers.
The Bank of England reduced the base rate in December to 3.75% with the expectation that rates should reduce by several more cuts by the end of this year. The typical fixed rate is linked to the five year swap rate which has been consistently in the 3.6-3.7% range for the past few months.
At the same time a number of significant lenders in the UK have seen loan books reducing substantially through a combination of repayment loans and wealthy investors paying down loans during the higher interest rate period. For these lenders to get back to the loan book levels required, they are having to aggressively reduce their interest rate margins. Some examples of the lower cost loans are detailed below:
Small Real Estate Loans
Loans for residential and commercial investments from £250k to 750k up to 65% LTV priced at 1.3-1.6% over BOE base rate with interest only available.
Large Real Estate Loans
Loans from £1m to £50 million up to 65% LTV are priced from 1.5% to 1.9% over BOE with interest only available.
Residential Investment Loans
Loans up to 55% LTV priced at 3.75% fixed for two years and 4.45% fixed for five years
Loans up to 75% LTV priced at 4.1% fixed for two years and 4.65% fixed for five years
Short WAULT Asset Management Loans
Loans up to 60% LTV priced from 2.25% over BOE base rate
Loans from £1 million to £50 million
• Up to 65% LTV: From 1.5% over BOE base rate
Loans from £250k – 750k
• Up to 65% LTV: From 1.3% over BOE base rate
Short WAULT loans
• Up to 65% LTV: From 2.25% over BOE base rate
Semi Commercial
• Up to 55% LTV: 5.25% fixed for five years
• Up to 55% LTV: From 1.85% over BOE base rate
• Up to 75% LTV: 6% fixed for five years
Current fixed rate interest only for loans between £500k-£20 million:
• Up to 55% LTV: 3.75% fixed for two years
• Up to 55% LTV: 4.45% fixed for five years
• Up to 75% LTV: 4.1% fixed for two years
• Up to 75% LTV: 4.65% fixed for five years
• HMO £500k-3 million 4.9% fixed for five years
Development costs are down to their lowest rates in three years:
Standard Loan to GDV
• Up to 60% LGDV: 4.5% over BOE Base rate
Stretched Loan to GDV
• Up to 72% LGDV: 8.35% fixed rate
Residential Refurbishment Loan
• Up to 80% LTC: 5% over BOE Base rate
First Time Developer Loan:
• £500k- £1.5 m up to 85% LTC
Refinance Developments on to a long term loan:
• Up to 65% LTV: 3.8% fixed for two years
• Up to 65% LTV: 4.2% fixed for five years
From £1 to 20 million
Bridging finance now provides commercial stabilisation loans up to a three year term to assist in the following cases:
• Asset managing office, retail and industrial properties
• Purchase and refurbishment for residential and commercial assets
• Sales exit facilities for developers looking to maximise the length of marketing periods for completed developments
• Below market value purchases up to 95% of the purchase price or 75% LTV depending upon the asset type
• Competitive pricing is available with bridging loans now priced from 6.9% interest rate
• Average loan times of five-eight weeks with credit decisions within 24-48 hours
• Up to 50% of Sales price with no valuation
• Up to 70% of Sales price with a valuation
• Loans up to £500k the lender uses the borrowers solicitor
• 12 month term
Acuitus Finance uses a commercial finance sourcing system with access to over 100 specialist property lenders covering commercial property investment, residential property investment, development finance and bridging finance.
To find out how Acuitus Finance can support your investment plans, contact us today or complete the form on our website
Stuart Buchanan
Acuitus Finance
+44 (0)20 7034 4850
+44 (0)7879 432868
