Commercial mortgages

At a glance

Ticket size

£150,000 to £10m+

Typical LTV

Up to 75% owner-occupier, 65% investment

Term

5 to 25 years

Typical rate

From 7.5% (rate-sensitive)

Decision

2 to 4 weeks

Personal guarantee

Usually limited PG

Owner-occupier vs investment

Owner-occupier mortgages are easier to underwrite because the lender can see the trading business that will service the debt. Investment mortgages depend on rental coverage of the debt service (typically 130% to 150%) and the quality of the tenant covenant.

Lenders we route to

Allica Bank, OakNorth, Aldermore, Shawbrook, Hampshire Trust Bank, Cambridge & Counties, plus high-street commercial lenders such as HSBC business banking for clean owner-occupier deals on smaller tickets. The matcher routes by deal type, ticket size, LTV and asset class (industrial, retail, office, healthcare). For the detail, see how commercial mortgage rates are priced and the documents, timeline and fees a lender expects, or compare business finance options side by side.

When a different facility fits better

If you need to move before a mortgage can complete (an auction lot, a chain-break, a refurbishment before you refinance), bridging finance is the usual short-term route. Building or converting rather than buying finished stock is development finance, with a commercial mortgage as one of its exits. If the property comes as part of buying a business, see business acquisition loans for how the freehold is carved out of the deal. If the spend is equipment rather than the building, asset finance secures against the asset itself, and where you would rather not tie the deal to a property at all, an unsecured business loan may suit.