Commercial Mortgage
Own your premises instead of renting. A commercial mortgage funds the purchase of business property — from offices and retail units to warehouses and industrial sites — with terms up to 25 years and competitive fixed or variable rates.
What isCommercial Mortgage?
A commercial mortgage is a long-term loan secured against a commercial property — either one you're purchasing or one you already own (for refinancing). Lenders typically advance 60–75% of the property's value (loan-to-value ratio), with terms from 5 to 25 years. You can choose fixed rates (predictable payments) or variable rates (which may track the Bank of England base rate). Commercial mortgages are available for owner-occupied premises (you trade from the property) and investment properties (you let it to tenants).
Best for:
- Buying your first business premises instead of renting
- Expanding from your current premises to a larger space
- Acquiring an investment property to generate rental income
- Refinancing an existing commercial mortgage at a better rate
- Purchasing a mixed-use property (retail below, residential above)
- Raising capital against a property you own outright (equity release)
Why businesses chooseCommercial Mortgage.
Long Terms
Repayment periods up to 25 years keep monthly payments manageable and predictable.
Competitive Rates
Rates are typically lower than unsecured business loans because the property provides security.
Asset Ownership
Build equity in a property asset rather than paying rent — the property may also appreciate over time.
Tax Deductible
Mortgage interest is usually tax-deductible against rental income for investment properties.
Lenders offering Commercial Mortgage
+ 30 more specialist lenders
Specialist Tip
Most lenders require a 25–40% deposit for commercial mortgages. If you don't have that much cash, some specialist lenders offer 80% LTV with a slightly higher rate. Always compare the total cost over the fixed period.
More ways tofund your business.
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