Structured funding for commercial properties
Use your pension funds to buy a commercial property to rent out, increasing the pension’s net value.
SIPP and SSAS loans
Borrow against your pension fund
Get a mortgage for a commercial property with self-invested personal pensions (SIPP) or a small self-administered scheme (SSAS).
What are SIPP and SSAS Loans?
SIPP and SSAS loans are structured finance solutions that allow you to buy a commercial property through a pension scheme.
To apply for this type of property-backed, pension-linked borrowing, you’ll need to have set up either a self-invested personal pension (SIPP) or a small self-administered scheme (SSAS). You can do this through a professional provider or an authorised independent financial adviser, but you should discuss their suitability first and ask for advice on the effect they’ll have on your pension plan and investment structures.
Our specialist pensions team will provide more information about the lending criteria and process involved in a SIPP or SSAS property loan, and will work with you to structure a loan that meets your financial needs
Why borrow against your pension scheme?
Potential tax benefits
Borrowing against a pension fund has possible tax benefits. We recommend you seek independent financial advice on this.
Loan-to-value up to 70%
Borrow up to 70% the cost of the property against a pension fund.
Eligibility and requirements
To apply for a pension loan, you’ll need to meet the following criteria:
- You must establish SIPP/SSAS before applying
- Your chosen scheme can borrow up to 50% of the net value of your pension, subject to application
- Only UK-registered schemes are eligible
- You’ll need to have a valid lease in place and complete some checks before we give you the money.
Structured to your specific requirements
A choice of interest rate types – fixed or floating (linked to the Barclays Bank Base Rate) or a combination of both. Fixed rates are available for up to 10 years. If you cancel or chose to repay your mortgage early, breakage costs may apply
Lending available up to 50% of the net value of your pension fund
Payments on a capital and interest basis
We will have first legal charge over the property
Arrangement, valuation, security and prepayment fees, and associated borrowing costs will apply
How the application works
- You or your independent financial adviser will need to give us three years’ financial accounts for the company that will rent the property.
- We’ll then assess the mortgage.
- If approved, we’ll send a facility letter to your pension provider and the legal paperwork to solicitors.
- We’ll instruct a bank-approved partner to value the property. We’ll let you know how much this will cost in advance, and it’ll be non-refundable.
We want to make sure you get the best borrowing solution for your needs.
Other borrowing solutions might be available that could be better suited to your circumstances.
If you'd like to find out about possible alternatives, please call1 your Relationship Team or go to the homepage of your Barclays app2 and select ‘Direct call’ under the ‘Contact us’ section.
Email us at SICreditWorkflow@barclays.com to apply for a SIPP or SSAS property loan.
You may also be interested in
Loans for large purchases or investments
Unsecured borrowing that helps businesses spread the cost of a purchase over a set period3.
Borrow up to £100,000
Fixed or variable rates
Monthly repayments from one to five years
Mortgages for commercial properties
Whether you need to buy a new building or release equity from your existing one, a commercial mortgage could be the answer4.
Borrow from £25,001
Buy new premises or release equity in your current buildings
Fixed and variable deals from 1 to 25 years
Other funding options
Compare our business borrowing with borrowing offered by other lenders7. You can find out more about the government’s Bank Referral Scheme [PDF, 1.4MB], including eligibility information.
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