What fees can I expect in a business refinance? Brokerage, arrangement, valuation & legal costs explained

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Quick answer: typical fees at a glance

Refinancing can save your business money—but fees matter. Below are indicative UK ranges you should expect. These are illustrative only; exact amounts depend on lender, loan size, security, property type and complexity.

Fee type	Typical range (UK, indicative)
Brokerage (broker fee / commission)	0.5%–3% of the loan (or £500–£10,000 depending on structure)
Arrangement / facility fee	£500–£3,000 or 0.5%–2% of loan
Valuation / survey	£250–£2,000 (commercial property higher)
Legal fees	£500–£4,000+ (complex commercial deals may cost more)
Other (exit, redemption, early repayment)	Varies widely

Get a tailored fee estimate: Free Eligibility Check — Get Quote Now (no obligation; enquiry is used only to match you with lenders/brokers).

Why fees vary in a refinance

There is no single price for a refinance. Fees change according to several drivers:

• Loan size & LTV: smaller loans often have a higher percentage fee; large loans can have lower percentage but higher absolute fees.
• Secured vs unsecured: secured refinances usually require valuations, solicitor work and registration, increasing cost.
• Property / asset type: commercial offices, mixed-use buildings or development finance require more detailed surveys than a simple small business charge.
• Borrower profile & credit history: complex company structures, multiple charges or adverse credit increase cost and time.
• Lender / broker pricing model: fixed-fee, percentage, success-only or a mix—each affects upfront cashflow.
• Urgency & complexity: rush jobs, bridging or development refinances carry premiums.

Example: a £250,000 refinance might incur a fixed valuation and modest legal fees; a £2m commercial refinance will typically involve larger legal teams, detailed valuations and higher arrangement fees.

Brokerage fees explained

What a broker does in a refinance

A specialist refinance broker assesses your needs, markets your case to lenders, negotiates terms, helps obtain valuations and coordinates the application through to completion. Good brokers can save you money even after their fee is paid—by securing a lower rate, better terms, or avoiding costly conditions.

Typical broker fee structures

• Percentage of loan: common for commercial deals (for example 1% of loan)
• Flat fee: agreed upfront, often used for smaller or more straightforward cases
• Success-only (no win, no fee): broker is paid only on completion; may be higher on success
• Hybrid: small upfront fee + success commission

Typical ranges & an example

Indicative ranges: 0.5%–3% of the loan value, or fixed fees between £500 and several thousand pounds. Example: 1% broker fee on a £500,000 refinance = £5,000.

VAT may apply depending on the broker’s status. Ask whether quoted fees are inclusive or exclusive of VAT, and whether any fees are refundable if the refinance does not complete.

Questions to ask your broker

• Is the fee charged upfront or on completion?
• Is the fee a flat amount, a percentage, or success-only?
• Are there any lender-paid commissions that reduce my fee?
• Will you pass any lender incentives to me?
• Can you provide a clear written fee schedule?

If you’d like matched introductions to specialist refinance brokers, start with a Free Eligibility Check.

Lender arrangement / facility / underwriting fees

What an arrangement fee covers

Arrangement fees cover the lender’s underwriting, credit processing, documentation and facility set-up. For larger or more complex deals there may be tranche-specific fees or completion fees.

Structures and ranges

• Fixed fee: e.g. £500–£3,000
• Percentage: 0.5%–2% of the loan amount (more common on larger commercial loans)
• Completion / facility fee: payable on drawdown or completion

Fee v rate trade-off

Lenders sometimes offer a choice: pay a higher arrangement fee to secure a lower interest rate, or pay less upfront and accept a slightly higher rate. You should ask for Total Cost illustrations to compare options over your intended term.

Capitalisation—many lenders allow arrangement fees to be added to the loan (capitalised). This improves immediate cashflow but increases interest paid over the term. Discuss tax or accounting implications with your accountant.

Valuation and survey fees

When a valuation is required

If the refinance is secured against property or major assets, the lender will usually require a valuation. Types range from desktop valuations to full RICS commercial surveys and specialist technical reports.

Typical costs

• Residential or small commercial desktop valuation: £250–£600
• Full RICS commercial valuation: £600–£2,000+ depending on size and type
• Specialist surveys (construction defects, environmental): additional £500–£3,000+

Ask who arranges the valuation (lender or borrower) and whether the fee is payable upfront. Some lenders use panel valuers and may offer discounted rates; others expect the borrower to instruct and pay directly.

Legal fees and registration costs

What legal fees cover

Solicitors handle searches, prepare and review charge/security documents, carry out company or land registry work, obtain execution and complete the legal side of the refinance. They also advise on any stamp duty (SDLT) or related taxes if applicable.

Typical ranges

• Simple company charge or small property: £500–£1,500
• Commercial property refinance with title complexities: £1,500–£4,000+
• Large or development finance deals: fees can be considerably higher and often billed hourly

Additional registration costs

• Land Registry fees (variable by property value)
• Company charge registration (Companies House) – modest fixed fee
• SDLT (Stamp Duty Land Tax) where applicable — check GOV.UK for current thresholds and rates

Ways to reduce legal costs: use lender panel solicitors (often faster), request fixed-fee quotes and consolidate searches where possible.

Other possible fees & hidden costs

• Early repayment / exit fees: if you refinance mid-term you may face break costs on the outgoing facility.
• Redemption statements and administration: small fixed charges.
• Swap breakage / hedging costs: if interest rate swaps are in place, breaking them can be expensive.
• Insurance or covenant compliance costs: sometimes lenders require additional cover or monitoring fees.

Always request a full schedule of all applicable fees before proceeding.

How to compare & negotiate fees

Practical steps to get the best outcome:

• Ask for an itemised fee schedule and a Total Cost illustration for each option.
• Compare fee + rate combinations, not fees in isolation.
• Negotiate broker commission and ask whether lender-paid commission reduces your fee.
• Get multiple quotes — the easiest way is to complete a single Free Eligibility Check and be matched with several specialist brokers/lenders.
• Decide whether to capitalise fees (add to loan) or pay up-front—consider cashflow and overall interest cost.

Short case studies / worked examples

Example 1 — SME consolidating overdrafts into a secured loan (loan £150,000)

Broker fee (flat): £1,200; Arrangement fee: £1,000; Valuation: £350; Legal: £800. Total fees ~£3,350. If the refinance reduces monthly interest and fees by £600 per month, payback on fees is under 6 months.

Example 2 — Construction company refinancing commercial property (loan £1,000,000)

Broker commission: 0.75% = £7,500; Arrangement fee: 1% = £10,000; Commercial RICS valuation: £1,500; Legal (complex titles & subordination): £3,500. Total fees ~£22,500. Negotiating a lower arrangement fee or capitalising part of the cost may be considered, but remember capitalisation increases total interest paid.

For personalised examples based on your loan size and needs, request a Free Eligibility Check and we’ll match you with the right specialists.

Frequently asked questions

Will a refinance enquiry affect my credit score?

No. Completing our enquiry form does not affect your credit score. Lenders or brokers may perform credit checks only if you proceed with an application.

Who usually pays valuation and legal fees?

Typically the borrower pays valuation and legal fees, though some lenders may cover or discount parts via panel suppliers. Confirm before instructing work.

Can I roll arrangement or valuation fees into the new loan?

Often yes — many lenders allow fees to be capitalised into the loan, which eases upfront cashflow but increases total borrowing and interest costs.

Are broker fees tax-deductible?

In many cases broker fees and financing costs are allowable business expenses for tax purposes, but tax treatment depends on circumstances. Check with your accountant.

How long does a refinance typically take?

Simple refinances can complete in a few weeks; complex commercial or development refinances may take 6–12 weeks or longer. Accurate valuations and clear legal title speed the process.

Final summary & next steps

Refinancing can cut costs or improve cashflow, but upfront and hidden fees will affect the net benefit. Typical costs include broker fees (0.5–3%), lender arrangement fees (fixed or %), valuations (£250–£2,000+) and legal fees (£500–£4,000+). Always ask for a full, itemised fee schedule and a Total Cost illustration before deciding.

Ready for a personalised estimate? Complete a Free Eligibility Check — Get Quote Now. The enquiry form is only used to match your business with lenders and brokers who can provide specific quotes; it is not an application and will not commit you to anything.

Want to read more about refinance options and detailed guidance? See our guide to refinance loans for businesses: refinance loans.

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About our team

UK Business Loans is an introducer that helps UK companies find the most suitable lenders and brokers for business finance of £10,000 and up. Our team has years of experience matching businesses to specialist providers across property, asset and working capital refinances. We do not lend; we connect you to experts who can.

1. What refinance fees should UK businesses expect?
Typical refinance fees include broker fees (0.5%–3% or £500–£10,000), arrangement/facility fees (£500–£3,000 or 0.5%–2%), valuation/survey (£250–£2,000+), and legal fees (£500–£4,000+), with other costs varying by deal complexity.

2. Who normally pays valuation and legal fees in a business refinance?
Typically the borrower pays valuation and legal fees, although some lenders may cover or discount parts via panel suppliers — always confirm before instructing work.

3. Can arrangement, valuation or legal fees be rolled into the new loan?
Often yes — many lenders allow fees to be capitalised into the loan to ease upfront cashflow, but this increases total borrowing and interest costs.

4. Will an enquiry through UK Business Loans affect my credit score?
No — completing the free eligibility check does not affect your credit score; lenders or brokers may carry out credit checks only if you formally apply.

5. Are broker fees tax-deductible for my business?
In many cases broker fees and financing costs can be allowable business expenses, but treatment depends on your circumstances so check with your accountant.

6. How long does a typical business refinance take in the UK?
Simple refinances can complete in a few weeks, while complex commercial or development refinances commonly take 6–12 weeks or longer depending on valuations and legal issues.

7. How should I compare and negotiate refinance fees and rates?
Request itemised fee schedules and Total Cost illustrations, obtain multiple quotes, negotiate broker commission and lender fees, and weigh capitalising fees versus paying up front.

8. What is a lender arrangement or facility fee and how is it charged?
An arrangement/facility fee covers underwriting and documentation and is charged as a fixed sum or percentage (commonly £500–£3,000 or 0.5%–2%) payable on drawdown or capitalisable into the loan.

9. What hidden costs should I watch for when refinancing a business loan?
Watch for early repayment/exit charges, swap breakage costs, redemption/admin fees, additional insurance or covenant monitoring fees, and any tax implications like SDLT.

10. How can UK Business Loans help me get accurate refinance fee estimates?
Complete the free eligibility check to be matched with trusted UK brokers and lenders who can provide tailored, itemised fee quotes and options with no obligation.