SSAS Rate Comparison Guide: How to Find the Best Deal

SSAS Rate Comparison: Going Beyond the Headline Number

When comparing SSAS mortgage rates, the natural starting point is the headline interest rate. But the headline rate tells only part of the story. The true cost of a SSAS mortgage encompasses arrangement fees, valuation fees, legal fees, exit fees, and the potential impact of early repayment charges — all of which can materially affect the total cost of borrowing over your planned holding period.

This guide explains how to compare SSAS mortgage rates effectively, what metrics to use, and how to access the full market rather than just the lenders you happen to know about.

Why Headline Rate Comparison Is Not Enough

Consider two SSAS mortgage offers on a £300,000 loan:

• Lender A: 6.50% per annum, arrangement fee 1% (£3,000), no exit fee, valuation included
• Lender B: 6.00% per annum, arrangement fee 2% (£6,000), exit fee 1% (£3,000), valuation £1,500

On a three-year interest-only term:

• Lender A total interest: £58,500. Total fees: £3,000. Total cost: £61,500
• Lender B total interest: £54,000. Total fees: £10,500. Total cost: £64,500

Lender B's lower headline rate actually costs £3,000 more over three years once fees are included. This example illustrates why rate-only comparisons can be misleading.

The Annual Percentage Cost of Credit (APCC)

The most comprehensive measure of borrowing cost is the annual percentage cost of credit, which incorporates both the interest rate and the fees over the anticipated holding period. This is not always available in the form lenders present their terms, so you may need to calculate it manually or use a broker to do so.

Our SSAS mortgage calculator allows you to input rate, fees, and term to calculate the true annual cost of borrowing.

Key Components to Compare

Interest Rate

The starting point. For variable rate products, note whether the rate is fixed for an initial period before reverting, and what the reversion rate is. For fixed rate products, confirm the rate for the fixed period and the reversion arrangement.

Arrangement Fee

This is charged by the lender at the start of the mortgage to process and arrange the facility. It is typically 1-2% of the loan amount. Some lenders allow arrangement fees to be added to the loan, which spreads the cost but adds to the overall interest bill.

Valuation Fee

Lenders require an independent valuation of the property before lending. Some lenders include this in their product; others charge separately. For commercial property, expect to pay £800-£3,000 depending on size and complexity.

Legal Fees

You will have your own legal costs (solicitors reviewing and executing the mortgage documentation) plus the lender's legal costs (which you typically pay). Budget £1,500-£4,000 for legal fees depending on complexity.

Exit Fee

Some lenders charge an exit fee (also called a redemption fee) when the mortgage is repaid, separate from any early repayment charges. Exit fees are expressed as a percentage of the outstanding loan and can range from 0.5% to 2%. See our guide to SSAS exit fees for more detail.

Early Repayment Charge (ERC)

Fixed rate mortgages typically carry ERCs if you repay during the fixed period. These can be substantial — often 1-5% of the outstanding balance, declining over the fixed period. Always check the ERC schedule before committing to a fixed rate product.

"The true measure of a mortgage's cost is what you pay in total — interest plus fees — over your planned holding period. We model this for every client before recommending a product, because the cheapest headline rate is often not the cheapest total deal." — Matt Lenzie, Former Banker & Corporate Finance Partner

How to Access the Full SSAS Market

SSAS mortgages are a specialist product. Not all commercial mortgage lenders offer them, and of those that do, availability and appetite varies by transaction type, property, and scheme size. There is no single comparison website that gives comprehensive coverage of the SSAS mortgage market.

The most effective way to access the full market is through a specialist SSAS finance broker with established relationships across the SSAS lender panel. A specialist broker can:

• Present your transaction to multiple lenders simultaneously
• Identify which lenders are most likely to offer competitive terms for your specific deal
• Negotiate on rate and fees based on market knowledge and lender relationships
• Provide a true cost comparison across multiple offers

Questions to Ask Every Lender

When receiving a mortgage offer from a SSAS lender, always ask:

• What is the total arrangement fee, and can it be added to the loan?
• Is there an exit fee, and if so, how is it calculated?
• Are there early repayment charges, and what is the schedule?
• What is the valuation requirement and who bears the cost?
• What legal costs will I be responsible for?
• What is the reversion rate if this is a fixed rate product?
• Are there any ongoing fees (annual fees, facility maintenance fees)?

Timing: When to Compare

The best time to compare SSAS mortgage rates is at the start of the property search — before you have committed to a specific property. This allows you to understand the range of rates available for your transaction profile and to approach lenders with a clean, uncommitted position. If you have already agreed to purchase a specific property, your timeline may be constrained, which can limit your ability to negotiate.

Key Takeaways

• Headline rate comparison is not enough — model total cost over your planned holding period
• Key cost components include rate, arrangement fee, valuation, legal fees, exit fee, and ERCs
• APCC is the most comprehensive comparison metric but may need to be calculated manually
• A specialist SSAS broker provides access to the full market and true cost comparisons
• Start comparing early — before committing to a specific property — for maximum negotiating leverage

Get a Full Market Rate Comparison

Our team can provide a full-market rate comparison for your SSAS mortgage, incorporating all costs and fees across multiple lenders.

Get in touch today, or use our SSAS mortgage calculator to start modelling the numbers.