Commercial Mortgages
Owner-occupier and investment finance built around the property, the business or tenant, and the purpose of the borrowing.
Finance for premises, investment and everything in between.
Commercial cases rarely fit a tick-box. We take time to understand the property, the covenant and your plans, then source terms from across our panel of mainstream and specialist lenders.
- Owner-occupier premises
- Commercial investment
- Semi-commercial & mixed-use
- Trading businesses
- Limited companies & SPVs
- Portfolio refinance
What to prepare for a semi-commercial or mixed-use mortgage.
What to prepare for an industrial or warehouse mortgage.
Discuss a commercial caseOwner-occupier commercial mortgages: what to prepare.
An owner-occupier commercial mortgage supports premises used by your own business, such as a warehouse, workshop, office or shop. The property owner and trading business may be different legal entities, so explain who will own the premises and who will occupy them.
If you or a family member will live in any part of the property, tell us at the start, as it may fall outside the finance we arrange.
You do not need a complete application pack to start a conversation. These details help us understand the requirement and explain what information is needed next:
- The property: its location, current use, purchase price or estimated value, and any works or change of use planned.
- The business: what it does, its trading history, ownership and the latest accounts or management figures available.
- The borrowing: the amount required, deposit or equity available, existing secured borrowing and the purpose of any capital raising.
- The plan: your preferred timescale, how repayments would be supported and any change in occupancy or business structure.
Budget for the whole transaction
Ask for a breakdown of lender, valuation, legal and any broker fees, as well as the repayment basis and any early repayment charges. The interest rate is only one part of the cost. Amounts and terms need to be checked against the specific proposal.
Clear property information and up-to-date business figures help identify questions early. A valuation, lender assessment and legal checks are still needed before a transaction can complete.
Explore an indicative commercial mortgage calculation or read our commercial case studies.
Discuss your business premisesSee your numbers in seconds.
Commercial, buy-to-let or bridging: adjust the assumptions to see an indicative breakdown, then email the figures or ask us to review a real requirement.
Common commercial requirements.
Owner-occupied
Buy or refinance the premises your business trades from, with the property and business assessed together.
Commercial investment
Finance for let commercial and semi-commercial property held for income.
Refinance & capital raise
Refinancing may be considered for capital raising against existing commercial assets, subject to lender assessment.
How commercial mortgages work.
A commercial mortgage is a loan secured against property used for business purposes, from premises a company trades from to a portfolio of let commercial units.
Pricing and terms are assessed case by case. Lenders weigh the strength of the business or tenant, the type and location of the property, and the deposit or equity available. Two similar-looking transactions can therefore be treated very differently.
Repayment basis, term and leverage depend on the property, borrower, income and lender. We help present those factors clearly and compare routes that may warrant further assessment.
Owner-occupied vs investment
An owner-occupied commercial mortgage funds premises your own business will trade from. Buying rather than renting changes occupancy costs and places the property and borrowing on the balance sheet. A commercial investment mortgage funds property you let to a tenant, where the lender assesses whether rental income supports the borrowing.
What lenders look at
- The property: type, condition, location and how easily it could be re-let or sold
- The covenant: the trading performance of your business, or the strength of the tenant
- Deposit or equity available and whether any additional security is proposed
- Experience: your track record with the property type or sector
- Serviceability: whether the income covers the repayments under the lender's assessment
Selected client case studies
These genuine, anonymised transactions were handled by members of our team through UK Mortgage Finance or during their wider property-finance careers.
Commercial investment New-build drive-through restaurant investment £1,237,500Commercial mortgage terms agreed
The transaction
The purchase involved a newly developed drive-through restaurant investment let to a national fast-food operator. The purchase price was £2.25m.
The approach
We reviewed lender appetite and presented the borrower, property and lease information to a commercial lender prepared to assess the requirement.
Commercial mortgage terms agreed
Commercial mortgage terms were agreed for £1,237,500 at Bank of England Base Rate plus 1.41% at the time. The actual LTV based on the supplied figures was 55% of the £2.25m purchase price.
Broker: Andrew Jones
Commercial remortgage Commercial property let to a charity £1,200,00025-year term
The transaction
The case was a £1,200,000 remortgage of a commercial property let to a charity.
The approach
A member of our team arranged the remortgage with a specialist commercial lender.
The finance
The £1,200,000 commercial remortgage was arranged on a 25-year term.
Broker: Rebecca Jones
Industrial property private-bank refinance £1,400,000Refinance arranged
A £1.4m private-bank refinance was arranged against an industrial property valued at £2.1m. More than £1m combined operating profit supported the case, and the structure released a residential property from the lender's security.
- £2.1m industrial property valuation
- Approximately 67% LTV
- Bank Base Rate plus 1.50% at the time
Broker: Andrew Jones
Simultaneous guesthouse and buy-to-let mortgages 65% + 75% LTVSimultaneous mortgages arranged
This historical team-member case involved two first-time mortgage borrowers in the second year of a new business buying and living in a guesthouse while letting seven bedrooms, alongside converting their existing home to buy-to-let. A regulated facility on the existing home and a commercial mortgage on the guesthouse were arranged simultaneously with Together. UKMF currently handles only unregulated property finance for investment and commercial purposes.
- £375,000 guesthouse valuation · 65% LTV
- £220,000 existing-home valuation · 75% LTV
- Limited accounts and benefit income considered
Broker: Rebecca Jones
Owner-occupier industrial warehouse mortgage £2,000,000Completed in July
Ben arranged an owner-occupier commercial mortgage against an industrial warehouse valued at £4.5m. The £2m loan completed in July at Bank Base Rate plus 1.51%, with a 0% lender arrangement fee.
- £4.5m property valuation
- Bank Base Rate plus 1.51% at the time
- 0% lender arrangement fee
Broker: Ben Jones
These case studies are anonymised genuine transactions. Figures and rates shown were applicable at the time and do not represent current pricing or a guarantee of future lending. Every application remains subject to individual circumstances, valuation, underwriting, legal checks and lender criteria.
Common questions.
The amount depends on the property, borrower, income and lender. We can review the equity or cash available and explain which routes may be realistic before an application is made.
Many lenders consider applications from limited companies and special purpose vehicles for investment property. We can help present the application, while your accountant should advise on the tax position.
Some lenders may consider interest-only structures, particularly for investment property. Availability and repayment basis depend on the property, income, borrower and lender criteria, so the options need to be reviewed against the full requirement.
Timescales vary by lender and depend on the applicant, property, valuation and legal work. We can explain the stages and information likely to be required after reviewing the case.
Offices, retail units, industrial and warehouse space, mixed-use and semi-commercial property, and more specialist assets. If you're unsure whether yours qualifies, just ask.
Related commercial finance.
Bridging is handled by Sterling Bridging Finance, a trading name of UK Mortgage Finance Ltd.