Commercial & Business Mortgages

Calculate the cost of a commercial mortgage by telling us how much you need to borrow in the fields below. Give us some additional information within our Deal Optimiser on the next page to allow us to negotiate the rate on your behalf.

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What is a commercial mortgage?

A commercial mortgage is the finance you will need if you’re aiming to buy or refinance a property for business purposes.

Who can take out a commercial mortgage?

You may find yourself needing one if you are a business owner that wants to own and occupy your office or premises, or if you are an investor that purchases and lets out commercial property.

Business mortgages for owner-occupiers

The main benefit of being an owner-occupier of a commercial space rather than a tenant is owning an asset that will appreciate over time rather than paying similar monthly rent payments that contribute nothing to your net worth. It leaves you in control of your space, taking away the worry of eviction, unwanted changes or rent hikes.

Commercial mortgage for investors

Investors will purchase commercial property with the intention of leasing it to business owners while sitting on an appreciating asset.

What kind of property can be purchased with a commercial mortgage?

A commercial mortgage can be used to finance any premises that generates an income for a business or investor. Most commonly we see applications for shops, pubs, care homes, industrial units and restaurants.

What is the difference between a business mortgage and a residential mortgage?

Typically the mortgage term for a commercial property is shorter than a residential mortgage, capping out at 15 years in comparison to the 25-30 year term we see as standard for a residential mortgage.

How much can I borrow for a commercial mortgage?

This will vary from lender to lender based on their criteria. The amount you can borrow will be decided following an assessment of you and your business’ financial circumstances. Lenders need to know that the business is profitable enough to be able to service mortgage and interest payments over a period of many years.

Some lenders are flexible and will be willing to consider additional assets or forms of income and factor them in to their assessments.

How much does a business mortgage cost?

Lenders will look at varying elements of your situation to calculate commercial mortgages rates. The lower the LTV (Loan-to-Value) you require, the lower the rate will usually be.

Do I need a deposit for a business mortgage?

Yes, most of the time. Commercial mortgages require you to provide a higher deposit than with a residential mortgage, typically between 25% and 40%. Given that commercial property is usually more expensive than a residential home this can end up being quite a substantial sum, but the more deposit you have the better your chances are of securing the finance you’re looking for.

When do I need a semi-commercial mortgage?

If you’re looking to purchase or refinance a mixed-use property, you’ll need a semi-commercial mortgage. By mixed-use, we mean a property that is made up of a combination of commercial and residential. For example, a retail shop with a flat above or a B&B.

Commercial Loan News

EWS1 forms scrapped for buildings under 18m

ALL PRODUCTS DISPLAYED ON THIS SITE ARE FOR UNREGULATED PRODUCTS ONLY. SHOULD YOU REQUIRE A REGULATED LOAN PLEASE CONTACT US. AS A MORTGAGE IS SECURED AGAINST YOUR PROPERTY IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.
COMMERCIAL MORTGAGES AND SOME FORMS OF BRIDGING, DEVELOPMENT AND BUY TO LET FINANCE ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

* Total savings achieved since November 2020 based on annualised interest rate saving where deal optimiser service negotiated a lower rate than lender’s published rate.