A commercial mortgage can help you purchase, refinance, or invest in business property with confidence.
We connect you with lenders offering tailored solutions based on your requirements, helping you compare options and move forward faster.
Complete our quick form to get matched with the most suitable commercial mortgage lenders for your business.
A commercial mortgage is a loan designed to help businesses purchase or refinance a commercial property. Whether you’re buying a new commercial building, expanding into a new premise, or refinancing existing borrowing, a commercial mortgage can help you secure the right funding.
At Commercial Mortgage Guide, we connect business owners across the UK with commercial mortgage lenders offering tailored solutions. Rather than approaching each lender individually, we help you compare commercial mortgages and access options suited to your needs.
A commercial mortgage is a loan secured against a property used for business purposes. Unlike a residential mortgage, which is used to buy a home, a commercial mortgage is used to purchase or refinance business premises or a commercial investment.
A commercial mortgage could be used to buy a commercial property such as an office, warehouse, retail unit, or even a mixed-use building. In some cases, it can also be used as a loan to purchase a property or land for commercial development.
Mortgages are available to businesses of all sizes, including those operating as a limited company or sole trader.
Commercial property covers a wide range of assets. Examples of commercial properties include:
Offices and business premises
Retail units and shops
Warehouses and industrial units
Hospitality venues
A flat above a shop (semi-commercial)
A semi-commercial mortgage is suitable where part of the property is residential and part is used for business purposes. If you need a semi-commercial mortgage, lenders are flexible depending on the property value and intended use.
You can use our commercial mortgage calculator to estimate repayments on your mortgage and understand how different loan amounts and interest rates affect your payments.
Use our commercial mortgage calculator to assess affordability before you apply for a commercial mortgage.
Commercial Mortgages UK
ESTIMATED MONTHLY PAYMENT
£0.00
When you take out a commercial mortgage, the lender will assess your borrowing requirements, business performance, and the property being financed.
Each lender may offer different terms, including:
Loan to value ratios
Mortgage term options
Interest rate structures
Repayment terms
The amount you can borrow will depend on factors such as rental income, turnover, and the percentage of the property value the lender is willing to lend.
The interest rate on a commercial mortgage can vary depending on the lender, loan term, and overall risk profile.
You may be offered:
A fixed rate or fixed interest rate
A variable rate linked to the Bank of England base rate
Variable or fixed interest rates depending on your preference
Understanding the mortgage rate is important, as it directly affects your repayments on your mortgage and overall borrowing costs.
A commercial mortgage typically comes with structured repayment terms over a defined mortgage term. You may choose between capital repayment or interest-only options.
It’s important to consider:
Monthly payment obligations
The ability to repay the loan comfortably
Early repayment charges
Any arrangement fee added to the loan
In some cases, fees may be added to the loan, increasing the total borrowing amount.
A business mortgage, sometimes called a business mortgage, differs significantly from a residential mortgage or buy to let mortgage.
Key differences include:
Higher deposit for a commercial mortgage
More detailed eligibility checks
Different interest rate structures
Focus on business performance rather than personal income
If the property is used primarily for business purposes, a commercial mortgage will usually be required instead of a residential mortgage.
A commercial investment mortgage is used when purchasing a property to generate rental income. This type of mortgage is common for investors looking to buy a commercial property as part of a long-term strategy.
Lenders will assess:
Expected rental income
Property value
Tenant strength
Market conditions
This type of commercial investment can provide steady income, but lenders will carefully assess the risk before issuing a mortgage offer.
Eligibility for a commercial mortgage depends on several factors. Lenders will assess your business and financial position before deciding to lend.
You may need to provide:
Business accounts and trading history
Details of the property or land for commercial use
Information on existing borrowing and debt
Proof of deposit for a commercial mortgage
Security may be required, and the property is used as collateral. If repayments are not maintained, the property may be repossessed.
Most commercial mortgage lenders require a commercial mortgage deposit, typically expressed as a percentage of the loan to value.
The deposit for a commercial mortgage will vary depending on:
The type of mortgage
The property value
The strength of the application
The loan to value ratio determines the percentage of the property the lender is willing to finance.
For mixed-use buildings, a semi-commercial mortgage may be required. This applies to commercial and semi-commercial properties such as a shop with residential accommodation above.
If you need a semi-commercial mortgage, lenders will assess both the business and residential elements of the property.
A commercial mortgage on land can be used for development or investment purposes. This type of borrowing is often used for purchasing a property or land for commercial use.
If you’re looking at a new commercial project or buying a business with premises included, lenders will assess the viability of the investment.
It’s important to compare commercial mortgages to find the most suitable option for your business. Each lender offers different rates, terms, and criteria.
A commercial mortgage comparison allows you to assess:
Interest rate options
Loan term flexibility
Fees and overall costs
Lending criteria
Working with a broker or introduction service can help simplify this process and improve your chances of securing a suitable mortgage.
In some cases, a commercial bridging loan may be more appropriate than a traditional commercial mortgage. Bridging loans are short-term solutions designed for quick access to funds, often used during purchasing a property or refinancing.
To get a commercial mortgage, you will need to provide key information about your business and the property. Lenders will assess your application and determine whether they are able to lend.
Whether you are looking to buy a commercial property, remortgage, or invest, a commercial mortgage can help you achieve your goals.
If you’re ready to take out a commercial mortgage, the first step is to apply for a commercial solution that matches your requirements.
At Commercial Mortgage Guide, we connect you with commercial mortgage lenders offering tailored options across the UK. Whether you’re buying a business, investing, or expanding, we help you access the right commercial finance solutions.
If you need a commercial mortgage, we’re here to help.
We make it simple to compare commercial mortgages, understand your options, and connect with lenders that suit your business.
The timeframe can vary depending on the lender, complexity of the application, and the property involved. In many cases, a commercial mortgage can take anywhere from a few weeks to a couple of months from application to completion.
Yes, it is possible, although options may be more limited. Lenders will usually look at your business plan, experience, and the strength of the property investment when assessing applications from newer businesses.
In many cases, lenders may require a personal guarantee, especially for smaller businesses or limited companies. This provides additional security for the lender if the business is unable to meet repayments.
Yes, refinancing (remortgaging) is a common option. It can be used to secure a better interest rate, release equity from a property, or restructure existing borrowing to suit your current business needs.
Commercial mortgages are available for a wide range of property types, including retail, office, industrial, and mixed-use buildings. However, eligibility will depend on the property type, location, and how it is used.
We can also help find commercial finance options with other services
Short-term property finance to bridge the gap
Funding for property development, from new builds to refurbishments
Funding for property development, from new builds to refurbishments
