Commercial mortgages at a glance
What is a commercial mortgage?
A commercial mortgage is a loan secured against property used for business or investment purposes.
You can use a commercial mortgage to buy premises for your own business or to purchase a commercial property that will be rented to another business.
Commercial mortgage lending is assessed individually. The lender considers the property, the strength of your business, your ability to make the repayments and how the property will be used.
This makes the preparation of your application particularly important. We will help you present the information clearly and approach lenders whose criteria fit your circumstances.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Buy to Let mortgages and Commercial Lending are not usually regulated by the Financial Conduct Authority.
What can you use a commercial mortgage for?
You can use commercial property finance to:
- Buy premises for your business
- Move your business to a larger property
- Purchase an additional business location
- Refinance an existing commercial mortgage
- Raise money from a commercial property you already own
- Purchase an office, shop, warehouse or industrial unit
- Buy a commercial property to rent to another business
- Purchase a property with both commercial and residential use
- Restructure existing commercial property borrowing
The property, business and proposed use will determine which lenders and finance options are available.
Which type of commercial mortgage do you need?
For example, your business could occupy one part of a building while another part is rented out.
Why use a commercial mortgage broker?
Commercial mortgage lending is not based on a single standard set of criteria.
Each lender takes a different approach to:
- Business sectors
- Trading history
- Accounts and profitability
- Property types
- Loan amounts
- Deposits
- Repayment terms
- Rental income
- Mixed use properties
- Personal guarantees
Approaching one bank limits you to that bank’s products and lending criteria.
We will look across the commercial mortgage market, identify lenders that fit your proposal and explain the available options clearly. This saves you from making several separate applications and reduces the risk of approaching a lender whose criteria do not match your circumstances.
More than finding an interest rate
The lowest interest rate does not automatically produce the lowest overall cost or the most suitable finance.
We will help you compare:
- The interest rate
- Whether the rate is fixed or variable
- The arrangement fee
- Valuation costs
- Legal costs
- Broker fees
- Repayment terms
- Early repayment charges
- Personal guarantee requirements
- The total amount repayable
- The lender’s requirements throughout the mortgage term
We will explain these costs and conditions before you decide whether to proceed.
Commercial mortgage or bridging finance?
A commercial mortgage is designed for longer term property borrowing. Bridging finance provides short term funding where a standard mortgage cannot complete within the required timescale or where the property is not ready for long term lending.
What will a commercial mortgage lender assess?
A commercial mortgage lender will assess the complete proposal rather than looking only at your income or the property value.
The lender will consider:
Your business
This includes your trading history, turnover, profitability, existing commitments, business bank statements and future plans.
The property
The lender will consider the property type, condition, location, value and intended use.
Your deposit or equity
The amount you need to contribute depends on the property, your business, the lender and the purpose of the mortgage.
Your ability to repay
For an owner occupied mortgage, the lender will assess whether the business can support the repayments.
For a commercial investment mortgage, the lender will assess the expected rental income, lease and tenant.
Your experience
Your business or property experience can form part of the lender’s decision, particularly where the proposal involves a specialist property or a commercial investment.
The security and guarantees
The lender can require additional security or a personal guarantee from a director or business owner.
Speak to a commercial mortgage adviser
A personal guarantee can place your personal assets at risk if the business does not meet its obligations. You should obtain independent legal advice before signing one.
What documents will you need?
The exact requirements depend on the lender and the structure of your application.
You should expect to provide some or all of the following:
- Business accounts
- Business bank statements
- Management accounts
- Cash flow forecasts
- Details of existing business borrowing
- Personal financial information
- Proof of deposit
- Information about the property
- Details of how the property will be used
- A business plan where relevant
- Lease and tenant information for commercial investment property
We will confirm what is required and help you prepare the application before it is submitted.
Commercial mortgages for mixed use property
Mixed use property combines commercial and residential space. Examples include a shop with a flat above or business premises that include living accommodation.
The lender will assess how much of the property is used for residential and commercial purposes, who occupies each part and how the property generates income.
The regulatory position can also depend on how the property is used. We will establish the correct mortgage category before approaching a lender.
Refinancing a commercial mortgage
Your existing commercial mortgage does not have to remain with the same lender.
Refinancing can help you:
- Review your interest rate and mortgage terms
- Replace borrowing that is reaching the end of its term
- Raise funds from equity in the property
- Restructure your monthly payments
- Move from short term finance to a commercial mortgage
- Support further business investment
We will review your current mortgage, including any early repayment charge, and compare the available refinancing options.
Commercial mortgages for established and growing businesses
You do not need to wait until your business has outgrown its current premises before exploring your options.
Speaking to a broker early gives you time to understand:
- How much your business can borrow
- The deposit required
- The likely monthly cost
- Which property types lenders will accept
- What documents need to be prepared
- Which costs need to be included in your budget
- How long the finance process will take
This gives you a clearer position before you make an offer or commit to a commercial property purchase.
How commercial mortgage advice works
- Tell us about your plans
We will discuss the property, your business, the amount required and what you want the finance to achieve.
- We assess the proposal
We will review the business finances, property details, deposit, experience and intended use.
- We identify suitable lenders
We will compare commercial mortgage options from lenders whose criteria fit the proposal.
- We explain the costs and conditions
You will receive a clear explanation of the interest rate, fees, repayment terms, security requirements and risks.
- We prepare and manage the application
We will help you gather the required documents, submit the application and deal with the lender throughout the process.
- We keep everyone informed
We will work with you, the lender, valuation professionals and solicitors to help move the application towards completion.
Why choose Your Mortgage Expert?
A commercial property purchase affects both your business and your long term financial commitments.
We will take time to understand what you are trying to achieve before identifying a finance option.
When you use Your Mortgage Expert, you receive:
- Clear explanations of your commercial mortgage options
- Access to lenders from across the commercial lending market
- Help preparing and presenting your application
- A comparison of interest rates, fees and lending conditions
- Support with lender questions and documentation
- Regular updates throughout the application
- One point of contact from your first conversation through to completion
Our role is to help you secure finance that fits your property, your business and your plans.
Why use a broker instead of approaching my bank?
Your bank can offer only its own commercial mortgage products and apply its own criteria.
We will review your proposal and identify lenders from across the commercial mortgage market whose approach fits your business and property.
Find the commercial mortgage option for your business
Speak to us before committing to a property purchase or refinancing arrangement.
We will review your plans, explain the available routes and identify commercial mortgage lenders whose criteria fit your proposal.
Speak to a commercial mortgage adviser
Page last reviewed: July 2026