Property finance built around your business or investment.
- Specialist commercial mortgage advice
- Owner-occupied and investment property
- Access to high-street and specialist lenders
- Support from enquiry to completion
Your home or property may be repossessed if you do not keep up repayments on your mortgage. Most commercial mortgages are not regulated in the same way residential mortgages are.
What are commercial mortgages?
A commercial mortgage is a loan secured against property used for business or commercial investment purposes.
It can be used to buy or refinance business premises, such as an office, shop, warehouse or industrial unit, or to finance a commercial investment property that is rented to another business.
Commercial mortgages generally fall into two broad categories:
Owner-occupied commercial mortgages
Used when your own business will operate from the property.
Commercial investment mortgages
Used when you own the property as an investment and rent it to another business.
Unlike residential mortgages, commercial mortgage applications are usually assessed individually. The amount you can borrow and the terms available can depend on the property’s value, deposit or equity, the financial strength of the business, rental income where applicable, credit history and the lender’s individual criteria.
What are you looking to do?
Commercial mortgages can fund very different types of property and borrower. Start with what you’re trying to achieve.
I’m buying premises for my business
Finance an office, shop, warehouse, industrial unit, surgery or other property that your own business will occupy.
I’m buying a commercial investment property
Purchase property that will be let to another business and generate rental income.
I want to refinance commercial property
Replace an existing commercial mortgage, review your current borrowing or potentially release equity.
I’m buying a mixed-use property
Finance property containing both commercial and residential elements, such as a shop with flats above.
I’m buying through a limited company
Commercial property can often be purchased or refinanced through a limited company, subject to lender criteria.
I need to complete quickly
If the property or timescale does not suit a conventional commercial mortgage, short-term bridging finance may be another option.
Explore bridging finance
How much can you borrow on a commercial mortgage?
There isn’t one fixed calculation that applies to every commercial mortgage.
The amount available can depend on whether the property is being purchased for your own business or as an investment.
If your business will occupy the property
A lender may consider:
- Business turnover
- Profitability
- Cash flow
- Trading history
- Existing borrowing
- Deposit
- Property value
- Business sector
- Credit history
- Ability to service the mortgage
If the property is an investment
A lender may consider:
- Property value
- Expected or existing rent
- Tenant quality
- Remaining lease term
- Rental coverage
- Deposit or equity
- Property type
- Borrower experience
- Wider financial position
Different lenders can assess the same transaction differently, which is one reason specialist commercial mortgage advice can be valuable.
Want to talk it through?
Call our friendly team on 0800 888 6500 for free, no-obligation advice or start online with our calculator.
What does a commercial mortgage cost?
The interest rate is only one part of the overall cost. Depending on the lender and transaction, you may need to consider:
Stamp Duty or other property taxes
The amount payable depends on where in the UK you’re buying, the property price and your circumstances.
Insurance
Buildings insurance is usually required by lenders from the appropriate stage of the transaction, while you may also want to consider contents and personal protection.
Get a quote nowConveyancing costs
You’ll normally need a solicitor or conveyancer for both the sale and purchase.
Get a quote nowLender fees
Potential costs can include product, arrangement, valuation or broker fees depending on the lender and service.
Surveys
You may choose to commission a property survey in addition to the lender’s valuation.
Get a quote now
Guides and insights
Commercial property needs specialist finance
Commercial mortgages are rarely one-size-fits-all. Two apparently similar properties can require very different finance depending on the business, tenant, lease, sector and ownership structure.
Morrow helps you explore the wider commercial mortgage market and structure finance around the property and what you’re trying to achieve.
Owner-occupied and investment expertise
We can help whether your business will occupy the premises or you’re purchasing property as an investment.
Access to specialist lenders
Commercial mortgage lenders can have very different appetites for sectors, property types and borrower circumstances.
Complex cases considered
From limited companies and mixed-use property to unusual premises and changing business circumstances.
Support through the transaction
We’ll help coordinate the lender, valuation and mortgage process through to completion.