Barclays

Barclays is one of the UK's largest and most internationally recognised banking groups, with a commercial property lending operation that spans from SME business premises through to large-scale institutional real estate transactions. The bank's commercial property expertise sits primarily within its Business Banking division for smaller transactions and its Corporate and Investment Banking division for larger and more complex deals, giving Barclays the capability to serve the full spectrum of commercial property borrowing requirements.

Barclays' heritage in banking extends over 330 years, making it one of the oldest financial institutions in the world. This depth of experience translates into sophisticated risk assessment capabilities and a deep understanding of UK commercial property markets through multiple economic cycles. The bank's commercial property teams combine local market knowledge with sector-specific expertise, enabling them to assess transactions with a level of nuance that reflects genuine understanding of the underlying assets and markets.

The bank's commercial mortgage proposition for SME businesses and mid-market borrowers provides finance for the acquisition, refinance, and equity release of commercial properties. For owner-occupied businesses, Barclays assesses applications based on business performance, with a focus on profitability, cash generation, and the management team's track record. The bank has particular strengths in certain sectors including healthcare, education, hospitality, and professional services, where it has developed specialist underwriting approaches that reflect the specific dynamics of each industry.

For commercial property investment, Barclays provides mortgage finance for individual assets and property portfolios. The bank is competitive across all main property types — offices, retail, industrial, logistics, and mixed-use — and has particular strengths in larger transactions where its balance sheet capacity gives it an advantage over smaller lenders. Barclays can accommodate single transactions from £100,000 up to tens of millions, and for institutional-grade borrowers, the bank can structure syndicated or club facilities for transactions exceeding its single-name lending limits.

Barclays' Real Estate Banking team handles larger and more sophisticated transactions, providing structured finance for commercial property portfolios, development projects, and real estate investment vehicles. This team brings institutional-grade expertise to deal structuring, with the ability to create bespoke facilities that incorporate multiple tranches, flexible drawdown schedules, revolving elements, and tailored covenant packages. For borrowers and sponsors with substantial real estate holdings, Barclays' Real Estate Banking team can provide relationship-based facilities that evolve as the portfolio grows and changes.

Loan-to-value ratios with Barclays typically cap at 65% to 70% for standard commercial mortgages, though the bank can be more accommodating for the strongest applications where the property quality, tenant covenant, and borrower profile are all exceptional. Terms of up to 25 years are available for commercial mortgages, with a range of interest rate options including fixed rates for periods of two to ten years, variable rates linked to Base Rate or SONIA, and structured hedging products for borrowers who want to manage their interest rate risk more actively.

Barclays' pricing for commercial mortgages is competitive for borrowers who meet its core criteria. Owner-occupied mortgage rates start from around 2.5% to 3.5% above Base Rate for strong applications, resulting in all-in rates from approximately 5.0% to 6.0%. Investment mortgage rates vary more widely depending on the property type, tenant quality, and loan size, but competitive pricing is available for institutional-quality assets. For larger transactions arranged through the Real Estate Banking team, pricing is negotiated individually and can be highly competitive where the deal quality justifies it.

The bank's approach to development finance reflects its focus on quality and experience. Barclays' development finance is typically available to established developers with strong track records, substantial net worth, and proven delivery capability. The bank can fund schemes ranging from modest conversions through to large-scale residential and mixed-use developments, with facilities structured to cover land, construction, and associated costs. Development finance through Barclays is characterised by competitive pricing for appropriate borrowers, but the barrier to entry is higher than with specialist development lenders.

Barclays has also been at the forefront of sustainable finance in the commercial property sector. The bank has introduced specific green lending products for commercial properties that meet certain environmental performance standards, offering preferential rates for buildings with strong Energy Performance Certificate ratings or those that incorporate significant sustainability features. This focus on sustainable finance reflects both regulatory direction and Barclays' own corporate commitments, and provides a tangible financial incentive for property owners who invest in the environmental performance of their assets.

The application process for a Barclays commercial mortgage reflects the bank's institutional scale. Documentation requirements are comprehensive, typically including three years of accounts, management accounts, business plans, personal financial statements, property details, and lease documentation. The bank's internal credit process involves multiple levels of assessment, with application review times varying depending on the size and complexity of the transaction. Standard commercial mortgage applications typically complete in eight to fourteen weeks, with larger or more complex transactions requiring additional time.

Barclays' regional business banking teams provide relationship management for SME and mid-market clients, while the Real Estate Banking team manages larger institutional relationships. Both channels benefit from the bank's scale and stability, offering borrowers confidence that commitments will be honoured and facilities will be available throughout the loan term. In a market where some smaller lenders have had to pull back from lending during difficult periods, Barclays' balance sheet strength provides reassurance that the bank will remain a consistent and reliable lending partner.

For Commercial Mortgage Broker clients, Barclays is a strong recommendation for established businesses and professional investors with larger, well-structured transactions. The bank's combination of competitive pricing, substantial lending capacity, and sophisticated structuring capability makes it an excellent choice for borrowers who need a banking partner with the scale to support their commercial property ambitions. Our relationships with Barclays' commercial banking teams across the UK enable us to present applications to the right team for each transaction's size and sector, and to access the most competitive terms available.