Commercial Mortgages UK
A commercial mortgage lets you buy or refinance business premises with a long-term loan secured against the property. Terms of 15-25 years are typical, with interest rates significantly lower than short-term finance. You can buy your own trading premises, investment property, or a portfolio of commercial assets.
Commercial mortgages are available for offices, retail units, warehouses, industrial units, pubs, hotels, care homes, and mixed-use properties. Lenders assess both the property value and the business's ability to service the mortgage from operating income or rental yield.
Key Benefits
- Lower interest rates than short-term commercial lending
- Build equity in your business premises over time
- Fixed or variable rate options for budgeting certainty
- Tax-deductible interest payments reduce your tax bill
Frequently Asked Questions
What deposit is needed for a commercial mortgage?
Typically 25-40% deposit (60-75% LTV). Owner-occupied properties may get slightly better LTV than investment properties. Some specialist lenders offer up to 80% LTV for strong applications.
Can I buy premises through my limited company?
Yes. Most commercial mortgages are taken in the company name. This can be the trading company or a separate SPV (Special Purpose Vehicle) holding company, depending on your accountant's advice.
What are typical interest rates?
Commercial mortgage rates are typically 2-5% above Bank of England base rate for variable rates, or 5-8% for fixed rates. The exact rate depends on LTV, property type, business strength, and term length.
Can I get a mortgage for mixed-use property?
Yes. Properties with both commercial and residential elements (e.g. a shop with flats above) are routinely financed. Some lenders specialise in mixed-use and can offer competitive terms.
Related Funding Options
Commercial Mortgages for Property Developers
Long-term finance for property portfolios, commercial investments, and refinancing completed developments. Commercial mortgages for UK developers.
Commercial Mortgages for Hospitality Businesses
Buy pubs, hotels, restaurants, and leisure properties with a commercial mortgage. Long-term finance for UK hospitality operators.
Bridging Loans UK
Fast bridging finance for UK businesses. Loans from £50k to £25M with completion in as little as 5 days. Compare rates from 50+ lenders.
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Learn About Our Broker NetworkCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.