What Is A Commercial Mortgage?
A commercial mortgage is a long-term loan secured against a commercial property — such as an office, warehouse, retail unit, or mixed-use building. It can be used to purchase business premises, refinance an existing commercial mortgage, or raise capital against property you already own.
Who Is It For?
Commercial mortgages are suited to business owners looking to buy their own trading premises, property investors acquiring commercial property, or businesses looking to release equity from existing commercial real estate.
How Much Can I Borrow?
Loan amounts typically range from £75,000 upwards with no fixed upper limit for larger transactions. Most lenders will advance up to 70–75% of the property value (loan-to-value).
What Are The Interest Rates?
Commercial mortgage rates vary significantly depending on property type, LTV, term and the borrower profile. Rates can be fixed or variable. Your broker will source terms across multiple lenders to find the most competitive option for your circumstances.
What Terms Are Available?
- Typical terms range from 3 to 25 years
- Capital repayment or interest-only structures available
- Fixed, variable or tracker rates depending on lender
What Properties Are Eligible?
- Office buildings and business parks
- Retail units and shops
- Warehouses and industrial units
- Pubs, hotels and hospitality venues
- Mixed-use and semi-commercial property