Planning Ahead in a Competitive Market

With interest rates still fluctuating and lenders tightening their criteria, refinancing has become more than just a routine exercise, it’s a strategic move. Whether you’re coming to the end of a fixed rate, expanding your business, or looking to improve cash flow, your refinancing strategy needs to be tailored, timely, and aligned with market realities.

In this blog, we explore how to approach refinancing in today’s competitive landscape, what lenders are prioritising, and how early planning can save you money and stress down the line.

Why Refinancing Needs a Strategy in 2025

In 2025, the UK commercial finance market is shaped by cautious lending, cost-conscious borrowers, and increased pressure on margins. Many business owners and investors are facing higher repayments as old deals expire, especially those secured before the mini-budget turmoil in 2022.

Refinancing isn’t just about getting a lower rate anymore. It’s about protecting cash flow, supporting growth, and avoiding unnecessary costs.

What Lenders Are Looking For

Lenders want reassurance. They’re assessing affordability more conservatively and may require stronger evidence of income, business performance, or exit plans.

To strengthen your application:

• Ensure your paperwork is up to date (accounts, rent roll, business plans)
• Present a realistic picture of income and liabilities
• Highlight any improvements to your asset or business since the original loan

A well-prepared case can still secure competitive terms even in a tougher market.

When to Start the Process

Timing is everything. Many borrowers wait until their fixed rate is about to end but by then, your options may be limited.

We recommend starting your refinancing strategy at least six months in advance. This gives you time to:

• Explore the full market
• Compare rates and terms
• Prepare for lender due diligence
• Avoid being rushed into an expensive product

Early planning also puts you in a stronger negotiating position.

Tailoring the Strategy to Your Goals

There’s no one-size-fits-all approach. Your refinancing strategy should reflect your wider objectives, whether that’s reducing monthly repayments, releasing equity, or securing funding for business growth.

A mortgage advisor can help you match your goals to the right lenders and structure, ensuring the new facility actually improves your position—not just resets the clock.