Guide to Commercial Mortgages


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By cutting out the middleman, these types of peer-to-peer business loans can often be achieved at a cheaper rate.

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Why choose a Guide to Commercial Mortgages

See if this is the right business loan for you

  • Unsecured business loans of up to £250,000 for terms up to five years are available
  • Secured business loans of up to several million are subject to asset quality, credit checks and LTV
  • You must be an established business, usually with two years trading history
  • The business must have clean credit, no CCJs or recent defaults
If known, please provide the address of the property to be mortgaged. (Optional)

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Frequently Asked Questions

Frequently Asked Questions

How much can I borrow?    

Typically up to 85% of the property’s value, however this varies depending on affordability, property type and industry. Most lenders will max out at 75% loan to value.

Is there any chance to get a 100% LTV Commercial Mortgage?    

A 100% LTV is possible but we would need you to offer some additional security (i.e. another property), or own a professional practice.

Can I still get a Commercial Mortgage if I have adverse credit?    

Yes, though if it is very severe then probably not.

Can I get funding for a HMO (House of Multiple Occupancy)?    

Yes, we have many lenders prepared to lend to HMOs.

Can I borrow to buy a Leasehold (not Freehold) premises?    

Yes but there needs to be a long lease on the property, typically in excess of 50 years. You should also check the clauses in the lease, such as increasing ground rent as this could affect your ability to borrow.

What types of properties can be purchased with a Commercial Mortgage?    

Anything with a commercial element, including offices, warehouses, industrial units, retail premises, mixed-use buildings, care homes. Semi-commercial properties such as shops with flats above also qualify, as well as large HMOs and blocks of flats.

Can I get a Commercial Mortgage if I’m self-employed?    

Yes. Many lenders are happy to support self-employed applicants as long as you can demonstrate sustainable income and a good track record.

What are the fees to get a Commercial Mortgage?    

If you decide to use us to arrange your mortgage there is no fee to get a quote but you will be charged you 1% of the loan amount (minimum £999) if you proceed with the application and get a formal loan offer. It is also normal that you pay the lender’s legal as well as valuation fees and there may also be an arrangement fee from the lender. However, lenders do deals from time to time where some or all of these expenses are removed so we monitor these options and can advise you where the best deal is.

Why should I use a Commercial Mortgage broker?    

You can do all this yourself, of course, but we can a) save you time by knowing which lender will give you the best deal; b) avoid complications later in the deal by presenting the information to that lender in the manner that makes them most likely to lend; and c) we can guide you through the process and make sure you compete the finance as efficiently as possible.

What's the difference between owner-occupier and investment commercial mortgages?    

Owner-occupier mortgages are for premises your own business will trade from. Investment mortgages are for buying property you plan to let to third-party businesses.

Can I use a Commercial Mortgage to refinance an existing property?    

Absolutely. Many clients refinance to access better rates, raise capital for growth, or release equity tied up in property.

Do I need to be VAT registered?    

Not always. However, some commercial properties are VAT-elected, so VAT might apply on the purchase price. If VAT will be payable, then a VAT loan may be appropriate in addition to a commercial mortgage.

How long does the process take?    

Typically 8-16 weeks from initial application to drawdown, depending on how quickly the valuation, legal work, and due diligence can be completed. It is possible to complete a transaction in as little at 4-8 weeks if it is a refinance.

I've already had a valuation done on my property; do I need another one?    

In some cases, lenders may accept a reissued valuation report if it was conducted recently. However, not all lenders will accept this, so your options may be limited depending on the timing and the lender’s requirements.

Can I purchase a property in a new limited company?    

Yes, it’s possible to purchase a property through a newly formed limited company and is known as an opco/propco structure. Many business owners choose this route for tax benefits and asset protection.

I am a first time investor, can I get a commercial investment mortgage?    

Yes, it’s possible to secure a commercial investment mortgage as a first-time investor. However, lenders may have stricter criteria for first-time buyers, as they’ll assess factors like your experience, financial stability, and the potential income from the property. While many lenders prefer applicants with previous property investment experience, we work with a range of lenders who can support first-time investors, often with a higher deposit. Having some evidence of running a successful business and/or property investing experience will help to support your application. If you're new to commercial property investing, we can guide you through the process and help you access the best possible financing options.

By cutting out the middleman, these types of peer-to-peer business loans can often be achieved at a cheaper rate. To qualify for crowdfunding, your business must be profitable and prove you are able to make repayments.

Crowdfunders look at historical data and won't lend against projections.

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