June 2025 Acuitus Finance Update

26th June 2025

Following the Bank of England’s cut in interest rates last week our latest finance update covers:

Are All Commercial Investments Priced The Same?

There are two principal categories of commercial investment properties in the world of finance, mixed investments (or semi commercial in lender terminology) and pure commercial.

Most lenders will price loans differently depending upon the property being a commercial or semi commercial. The reason for the price differential is the capital required to support the loan, with the residential element requiring lower capital.

To achieve the lowest pricing, semi commercial properties require a minimum of 50% of the property to be residential.

Currently properties which qualify with 50% or more residential can be priced from the following rates:

  • 6% over BOE base rate or 5.55% fixed for five years.

If a semi commercial property has at least eighty percent of the property in residential it may qualify for the even lower, pure residential rates currently available from 4.75% fixed for five years.

Acuitus Auctions New Pre- Approved Bridging Loan

Buyers of properties sold in the live Acuitus auction can now access a new pre-approved bridging loan from Together.

The loan will cover all properties which are income producing or vacant, this does not include any mid development properties or land.

The terms available:

  • Loans from £100k to £1 million
  • Up to 50% LTV with no valuation / loans from £100k to £1 million
  • Up to 70% LTV with a valuation
  • Interest 1% per month
  • 12 month term
  • 2% fee

Properties sold up to and including £500k can have dual representation legals

Commercial Property Investments

Loans from £500k to £10 million

Interest rate margins are influenced by a variety of factors which include the quality of the asset and the sponsor, loan to value, term of the loan, etc:

  • Up to 45% LTV: 6.23% fixed for five years
  • Up to 75% LTV: 6.99% fixed for five years
  • Up to 45% LTV: 1.65% over BOE base rate
  • Up to 75% LTV: 2.64% over BOE base rate

Semi Commercial (50% or more residential):

  • Up to 60% LTV : 55% fixed for five years / 1.6% over BOE base rate
  • Up to 70% LTV: 6.25% fixed for five years / 2.35% over BOE base rate
  • Up to 75% LTV: 6.6% fixed for five years / 3% over BOE base rate

Loans from £5m-£50m

Margins have decreased for larger loans, the pricing depends upon the type property and the mix of a portfolio.

Current margins 1.5%-2% over BOE base rate or Sonia, the same margins can be used to fix rates.

For long term hold assets there are loan terms from 10 to 25 years with fixed interest rates available. Individual properties can be substituted if you want to make changes to your portfolio.

Residential Property Investments including Multi Unit Blocks and HMOs

Current five-year fixed rate interest only loans for £1-£20 million:

  •  Up to 55% LTV: 4.75% fixed for five years
  •  Up to 65% LTV: 4.8% fixed for five years
  •  Up to 75% LTV: 5% fixed for five years
  •  Up to 75% LTV: 1.25% over BOE base rate for three years
  •  HMO up to 75% LTV: 5.45% fixed for five years
  •  Holiday lets up to 75% LTV: 5.6% fixed for five years

With higher base rates, using a fixed rate loan reduces the debt service requirements to increase the size of the loan.

Cover the finance market

Acuitus Finance now uses a commercial finance sourcing system to cover more of the lending market.

The system has access to over 100 specialist property lenders covering development finance, bridging finance, commercial and residential investment finance.

For information on any of the finance options detailed here, please contact Stuart Buchanan on 07879 432868 / stuart.buchanan@acuitus.co.uk

Development Finance

Development Exit

A new Development Exit facility is available up to 70% LTV with rates from 0.33% plus base rate.

Development Finance

  • Typical loan to GDV is between 60%-75%
  • Typical loan to cost is between 70%-90%
  • All in development loan interest 8.85% fixed

Green Development Finance

  • Points based loan based upon energy efficiency
  • All in interest rate from 7%–9%
  • From £1 – £20 million with loans up to 85% loan to cost and 65% loan to GDV

Bridging Finance

Bridging loans are available from six to 36 months. The principal uses for bridging finance are:

  • Development Exit: for complete of partly sold sites up to 75% LTV
  • New Purchase: up to 75% LTV
  • Light or Heavy Refurb: up to 70% of GDV
  • 100% loans with a supporting asset
  • Planning: up to 65% of value
  • Asset mangement stabilisation loans
  • Rates from 2%pa

Interest cost is based upon the asset class and the loan-to-value.

Contact Us

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

Stuart Buchanan
Acuitus Finance
+44 (0)20 7034 4850
+44 (0)7879 432868