Long-Term Pension Property Finance

SSAS Term
Loan

Reviewed by Matt Lenzie, Founder — SSAS Property Finance

Long-term commercial property mortgages through your SSAS pension scheme. Competitive fixed and variable rates from 5.49% with terms up to 25 years from specialist pension lenders.

Up to 25 Years

Long-term finance to match your SSAS investment strategy, with terms available up to 25 years.

From 5.49% pa

Competitive fixed and variable rates from our panel of specialist SSAS pension property lenders.

Up to 50% LTV

Borrow up to 50% of your SSAS net asset value under HMRC rules for long-term property investment.

Fixed & Variable

Choose from fixed-rate certainty or variable-rate flexibility to suit your pension scheme's needs.

What Is an SSAS Term Loan?

An SSAS term loan is a long-term mortgage used by your Small Self-Administered Scheme to purchase commercial property. Unlike SSAS bridging finance which is designed for short-term needs, a term loan provides stable, long-term funding with predictable repayments over periods of up to 25 years.

Under HMRC rules, your SSAS can borrow up to 50% of its net asset value. For example, an SSAS with £500,000 in assets can borrow up to £250,000, giving a total purchasing power of £750,000 for commercial property. The loan is secured against the property and repaid from the SSAS fund, with rental income flowing tax-free into the scheme.

Both fixed and variable rate options are available. Fixed rates provide certainty of repayments, making it easier for trustees to plan cash flow. Variable rates may offer lower initial costs but carry the risk of rate increases. Interest-only and capital repayment structures are both available, with interest-only being popular for maximising rental yield within the pension scheme.

Typical SSAS Term Loan Terms

Loan to ValueUp to 50%
Term1-25 years
Interest RatesFrom 5.49% pa
Rate TypeFixed or variable
RepaymentInterest-only or repayment
Property TypeCommercial only
Rental CoverageTypically 125-150% ICR
Arrangement FeeTypically 1-2%

Fixed vs Variable Rate SSAS Loans

Fixed Rate

Lock in your interest rate for a set period (typically 2-5 years). Provides certainty of repayments and protection against rate rises. Ideal for SSAS trustees who want predictable costs. Early repayment charges usually apply during the fixed period.

Variable Rate

Rate moves with the Bank of England base rate or a lender reference rate. May offer lower initial costs than fixed rates. Gives flexibility to overpay or exit without early repayment charges. Suitable when rates are expected to remain stable or fall.

SSAS Term Loan Eligibility

  • Registered SSAS with sufficient net assets (minimum 50% of property value)
  • Property must be commercial (offices, industrial, retail, warehouses, land)
  • Minimum loan size typically applies (varies by lender)
  • Rental income must meet lender interest coverage ratio requirements
  • Independent RICS valuation of the property
  • All SSAS trustees must approve the borrowing and property acquisition

The SSAS Term Loan Process

1

Initial Consultation

We assess your SSAS position, property details, rental income, and financing requirements.

2

Lender Comparison

We compare fixed and variable rate options across our specialist lender panel to find the best terms.

3

Application & Valuation

We submit your application and instruct an independent RICS valuation of the commercial property.

4

Legal & Trustee Approval

Specialist pension solicitors handle the legal work while all SSAS trustees review and approve the transaction.

5

Completion

Funds are drawn down, the property is purchased into the SSAS, and rental income flows tax-free into your pension.

Related SSAS Finance Products

Term Loans Also Available via SIPP

Long-term commercial property mortgages are also available for Self-Invested Personal Pensions (SIPPs). If you hold a SIPP rather than an SSAS, visit our sister site SIPP Property Finance for specialist SIPP mortgage options.

Ready for a Long-Term SSAS Property Mortgage?

Complete our short enquiry form and receive indicative terms from specialist SSAS lenders within 24 hours. No obligation, no fees for initial consultation.

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