If you’re buying property for business purposes—whether it’s a retail unit, office space, warehouse, or even a mixed-use building—you’ll likely need a commercial mortgage.
Unlike residential or standard buy-to-let mortgages, commercial mortgages are tailored to properties used primarily for business or investment purposes.
Who Uses Commercial Mortgages?
Commercial mortgages are commonly used by:
- Business owners buying premises to operate from
- Investors purchasing commercial property to let to tenants
- Developers acquiring sites for redevelopment
- Landlords investing in mixed-use buildings (e.g. flats above shops)
They can also be used to refinance existing commercial property, raise capital, or consolidate debt.
Key Features of a Commercial Mortgage
- Loan Size – Typically starts at £50,000 with no upper limit (subject to affordability and property value)
- Deposit – Expect to put down between 25–40%, depending on the property and your circumstances
- Rates – Interest rates vary depending on your experience, credit profile, business strength, and the asset itself. Rates are often higher than residential due to increased risk
- Terms – Usually 3 to 25 years, with both capital repayment and interest-only options available
- Fees – Arrangement, valuation, legal, and broker fees should be factored into your costs
What Do Lenders Look For?
Commercial mortgage lenders will assess:
- Your business or investment track record
- The strength of the tenant or lease (if applicable)
- The property’s value, use, and location
- Your credit profile and affordability
- Future potential for rental income or capital growth
Every deal is bespoke. Unlike standard mortgages, there’s no “one-size-fits-all” process—terms are often negotiated case by case.
Why Work With a Specialist Broker?
Commercial lending is a niche market with fewer lenders, more complexity, and a wider range of terms. A specialist broker can:
- Help package your application professionally
- Match you with lenders that understand your sector
- Negotiate competitive rates and terms
- Guide you through the valuation, legal, and underwriting process
In Summary
A commercial mortgage can be a powerful tool for growing your business or property portfolio, but the stakes are higher, and the process more involved. Whether you’re acquiring your first commercial premises or refinancing a portfolio, the right advice can save you time, money, and stress.
Thinking about commercial finance? Speak with a broker who specialises in commercial property and understands how to structure deals that work for you.
Emily's Mortgage Services LTD 