Santander UK: products, terms and eligibility

Santander UK is a UK provider of commercial mortgages and bank lending. The legal entity named on its site is Santander UK plc, company number 02294747. It is based in London.

Santander UK plc is a bank registered in England and Wales (registered number 2294747) with its registered office at 2 Triton Square, Regent’s Place, London. It says it is authorised by the Prudential Regulation Authority and regulated by the FCA and PRA (register number 106054). Commercial mortgages are offered through its corporate banking arm; smaller unsecured loans are offered separately through Santander Business Banking.

Everything on this page comes from what Santander UK publishes itself. We show the date we last checked it, and we do not rate or rank lenders.

Santander UK publishes 2 products for UK businesses. The table above gives the amounts and terms as it states them.

• Commercial mortgage: Fixed or variable rate facilities; different repayment options including interest-only; secured on the business’s trading premises.
• Business Loan (Santander Business Banking, unsecured): Fixed monthly Direct Debit payments; overpay at no extra cost.

Commercial mortgage

Secured lending against a UK business’s trading premises, to buy premises or refinance existing ones, from £25,001 in sterling over up to 25 years. Fixed or variable rate facilities and different repayment options, including interest-only, are offered. It is for businesses with turnover over £250,000, and is not available for real estate investment purposes. Santander says property used as security may be repossessed if repayments are not kept up.

Business Loan (Santander Business Banking, unsecured)

Unsecured loans of £1,000 to £50,000 over 1 to 7 years with fixed monthly Direct Debit payments, per the first-pass record. Limited companies and LLPs are asked for a personal guarantee, and overpayment is allowed at no extra cost.

Santander UK says its finance is used for:

• Buying business trading premises
• Refinancing existing business premises

What it says it does not fund:

• Real estate investment purposes (commercial mortgage)

Santander UK publishes these criteria. Meeting them does not mean an application will be accepted: every lender makes its own decision.

• Commercial mortgage: UK businesses with turnover over £250,000.
• Commercial mortgage: loan used against the business’s trading premises.
• Commercial mortgage: not available for Real Estate Investment purposes.
• Online application for commercial mortgages from £50,000 where turnover is at least £1 million.
• Business Loan: sole trader, partnership, LLP or private limited company with no more than 2 partners or directors who own the business entirely.
• Business Loan: all owners aged 18 or over and UK residents, with no IVA in the last 6 years.

Santander UK describes its process like this:

1. Contact the corporate banking team, or apply online for a commercial mortgage of £50,000 or more where turnover is at least £1 million.
2. Santander reviews the application, which is subject to credit status and terms and conditions.

Every application is subject to status and the lender’s own criteria at the time.

A commercial mortgage is a long-term loan secured on business premises or investment property. Lenders look at the property’s value, the deposit, and whether the business’s profits or the rent comfortably cover the repayments.

Banks often lend across several products, from overdrafts to asset finance, and some can offer facilities under government schemes. See government-backed business loans for how those work.

Points Santander UK publishes that are worth knowing:

• Commercial mortgage is secured; the site warns property used as security may be repossessed if repayments are not kept up.
• Limited companies and LLPs are asked for a personal guarantee on the unsecured Business Loan.
• Arrangement and other fees apply on commercial mortgages (see its factsheet).
• Applications are subject to credit status and the right to decline is reserved.
• Business Loan has no payment holidays at present.

Security and guarantees

Commercial mortgages are secured on the business’s trading premises. Limited companies and LLPs are asked for a personal guarantee on the unsecured Business Loan.

Santander UK’s site states: “Santander UK plc. Registered Office: 2 Triton Square, Regent’s Place, London, NW1 3AN, United Kingdom. Registered Number 2294747. Registered in England and Wales. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register number is 106054.”

Protections differ by borrower type and loan size. Most lending to limited companies is not regulated consumer credit, so read the agreement and ask the lender what applies to you.

Other providers of commercial mortgages and bank lending with profiles here include TSB, YBS Commercial Mortgages and Barclays. Each profile uses that lender’s own published terms.

The full list, grouped by product type, is in our directory of UK business lenders.

Capzy is a credit broker, not a lender, and gets paid by the lender. One application lets your business compare options across lenders, so you can weigh this kind of facility against the alternatives. You can check your funding options with a soft search that does not affect your credit score. A full application to a lender may involve a hard search, and any offer is subject to status and lender criteria.