Ultimate Guide to Commercial Mortgages
Commercial mortgages for purchasing business properties, offices, retail units, and other commercial real estate. These mortgages typically have different terms, rates, and criteria compared to residential mortgages.
Typical deposit 30% - 40% · Typical timeline 6-12 weeks
Summary
Mortgages for business properties and commercial real estate. Typical deposit: 30% - 40%. Typical rates: 4.5% - 6.2%. Usual timeline: 6-12 weeks. There are 2,403 commercial mortgage brokers listed on Mortgage118.
What is Commercial?
Understanding the fundamentals and purpose of commercial financing
Mortgages for business properties and commercial real estate.
Commercial mortgages are loans secured against non-residential property such as offices, shops, warehouses or mixed-use buildings. UK commercial mortgage terms typically range from 3 to 25 years, with loan-to-value ratios of 60-75%.
Key Features
Essential characteristics that make commercial mortgages unique
Longer loan terms (up to 25-30 years)
Flexible repayment structures
Higher loan amounts available
Specialist commercial lenders
Business cash flow considerations
Eligibility Requirements
Key criteria you need to meet to qualify for commercial financing
In most cases you'll need to meet both property and borrower criteria — lenders assess the deal as a whole.
Property Requirements
- Commercial use classification
- Good location with commercial demand
- Suitable for intended business use
- Compliant with planning regulations
- Professional valuation supporting commercial value
Borrower Requirements
- Established business with trading history
- Strong business financials and cash flow
- Good credit history for business and directors
- Adequate security and personal guarantees
- Clear business plan and property strategy
Application Process
Step-by-step guide to securing your commercial mortgage
Timescales vary by lender and case complexity — the steps below are typical.
Initial Consultation
45-60 minDiscuss commercial property requirements and business plans
Business Case Review
3-5 daysAssess financial projections and business viability
Full Application
3-5 daysSubmit business accounts, projections and property details
Commercial Valuation
2-3 weeksSpecialist commercial property valuation
Underwriting & Offer
3-6 weeksDetailed credit assessment and formal offer
Completion
6-12 weeksLegal work and due diligence completed
Current Commercial Rates
Latest interest rates and pricing for commercial mortgages
Interest Rates
Typical range for commercial mortgages
Deposit Required
Minimum deposit for commercial financing
Processing Time
From application to completion
Indicative figures only — rates and fees vary by lender and your circumstances. A qualified adviser can give personalised quotes.
Benefits & Considerations
Weighing the advantages and important factors for commercial mortgages
Benefits
- Business asset acquisition and growth
- Potential for capital appreciation
- Tax advantages for business ownership
- Control over business premises
- Stable long-term business location
Important Considerations
- Higher interest rates than residential
- Longer application and approval process
- Complex documentation requirements
- Market volatility affecting commercial property values
- Business performance impact on mortgage terms
Fees Guide
Understanding the costs and fees associated with commercial mortgages
Arrangement Fee
Commercial facility fee
Valuation Fee
Commercial property valuation
Legal Fees
Commercial conveyancing
Broker Fee
Commercial arrangement
Important Notice
Fees can vary significantly between lenders and depend on your specific circumstances. Advisers will provide you with a detailed breakdown of all costs before you proceed.
Useful Resources
Authoritative links to help with your commercial mortgage journey
Frequently Asked Questions
Common questions and answers about commercial mortgages
Related Specialisations
Explore other mortgage types that might be relevant to your needs
Browse Commercial Brokers by Location
These pages list active advisers in each area — use them to narrow down, then check each profile covers commercial lending.
Browse all UK regions →Content last reviewed: March 2026. Rates and criteria may have changed - always confirm with a qualified adviser.
