Who commercial mortgages are for
Owner-occupiers
Businesses buying the premises they trade from instead of renting.
Commercial investors
Buying let commercial property for rental income.
Professional practices
Dentists, vets, accountants and other practices buying premises.
Portfolio refinance
Consolidating or refinancing existing commercial borrowing.
What lenders usually want to see
- Business accounts: for owner-occupiers, usually two to three years of figures.
- Lease and tenancy details: for investment property, including lease length and covenant strength.
- Property details: type, condition, location and valuation expectations.
- Deposit: typically a larger contribution than residential lending.
- Experience: your business or property investment track record.
How it works
- Initial review: we look at the property, the purpose of the loan and your business or rental income.
- Packaging: we prepare accounts, tenancy information and property details so lenders can assess the case properly.
- Lender terms: we approach suitable lenders and compare the terms available.
- Valuation and legal work: the lender values the property and both sides' solicitors complete the legal process.
- Completion: funds are released and the loan is repaid over the agreed term.
Costs to consider
Commercial mortgage costs vary by lender, property and business profile. As well as interest, there may be arrangement, valuation and legal fees, and early repayment charges if you repay or refinance during an initial period. We set out the full costs of the options available before you proceed.
Frequently asked questions
What is a commercial mortgage?
A commercial mortgage is longer-term lending secured against commercial property, such as offices, shops, industrial units, warehouses or healthcare premises. It can be used by businesses buying their own premises or by investors buying let property.
What is the difference between an owner-occupier and an investment commercial mortgage?
An owner-occupier mortgage is for a business buying premises it trades from, and is assessed mainly on the strength of the business. An investment mortgage is for property let to tenants, and is assessed mainly on the rental income and lease terms.
What information will a lender need?
Typically business accounts or tenancy details, information about the property and its value, details of your deposit, and your business or property investment experience.
Can I get a commercial mortgage on mixed-use property?
Yes. Property that combines commercial and residential space, such as a shop with a flat above, is usually financed with a semi-commercial mortgage.
Can I refinance an existing commercial mortgage?
Yes. You may want to reduce costs, extend a term that is ending or raise capital. See business and commercial refinance.
Talk to us about your project
Tell us about the property, the amount you need and your timescale. We will review the funding route, shape the exit strategy and package the case for suitable lenders.
Start your enquiry