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Mortgages for
Commercial Property

Give the business a place
to thrive with a commercial
loan or remortgage.

Getting Started with Commercial Mortgages

Looking to purchase or remortgage a non-residential property or business? You’ll need a commercial mortgage, and our expert commercial mortgage brokers can help. 

Owning commercial property can be incredibly profitable, with higher rental yields than traditional residential buy to let. Similarly, if you’re a business owner, owning your own commercial unit will save you from rental fees and be an investment for your business. 

Unlike some other mortgage types, mortgages for commercial property are incredibly versatile and are often tailored to your unique circumstances, but this can mean they’re more challenging to secure.

Whether you’re purchasing your 10th commercial investment property or a place to run your business from, our experts can help. 

Why MFB will find the ideal commercial mortgage for you.

Whatever you’re looking to do, your MFB commercial mortgage specialist will explore all the possibilities and talk you through your options. By working with us, you’ll save time and money.

  • We’ll take the time to understand your commercial mortgage ambitions.
  • Our team are all experts in their field and understand the complexities of the market
  • Our longstanding professional relationships with the leading commercial mortgage lenders, on and off the high street, means we’ll get the best deal available, tailored to you.
  • Our specialists are experienced in a wide range of commercial sectors, so we will quickly get your case to the most suitable commercial mortgage lender.

What our clients say…

We could go on all day about what makes us great, but our client's reviews speak for themselves

What makes MFB the best mortgage & finance solution in the UK?

Our award-winning buy to let brokers are experts in their field and our enthusiasm and experience makes us best placed to support you with your mortgage needs. We strive to deliver excellence with every mortgage application, no matter how complex or straightforward your enquiry may be. Whatever you’re looking to do, we’re the brokers to help. 

  • We’re a multi-award-winning team of buy to let experts
  • A family-owned business, we always put our clients’ needs at the heart of everything we do
  • We delight our clients with our service, and are proud to be rated 5 stars on Trustpilot
  • We’re a founding member of the NACFB and regulated by the FCA and PRA, so you can be assured of our integrity
  • Our experience in the industry means we’ve developed influential relationships to help secure you the best buy to let mortgage deal
  • Our fantastic industry partnerships mean we can support you with conveyancing, insurance, life cover and more

Frequently asked commercial mortgage questions…

What is a commercial mortgage?

A commercial mortgage is a loan granted to an individual, Limited Company or Trading Limited Company to purchase or remortgage a commercial property or a business. 

Your Commercial Property Types

Commercial property typically refers to any property which contains a trading business but can also include large residential rental properties like blocks of flats, and land that generates an income. With such a broad spectrum of property possibilities, commercial mortgage lenders have varying approaches and appetites for different properties and business types. At MFB, our specialist commercial team have dealt with almost every commercial property and business type. However, here are some of the sectors we deal with most often:

  • Retail (e.g., shops and high street services)
  • Large residential (e.g., MUFBs)
  • Hotels
  • Hospitality (e.g., Pubs and Restaurants)
  • Childcare businesses
  • Care-homes

How much can I borrow?

Mortgages for commercial property typically range between £50,000 and £25 million; however, how much you can borrow on a commercial mortgage depends on many factors, including loan to value (LTV), property type, trading business type, credit score and more. These factors will be unique to your circumstances. The best way to determine how much you could borrow is to speak to one of our expert commercial mortgage brokers about your plans.

What’s the difference between a commercial mortgage and a homebuyer mortgage?

The main difference between a mortgage for commercial property and a homebuyer mortgage is that a commercial mortgage can only be secured on property you cannot live in, or that is run as a business where the percentage of living space is less than 40% (like a guesthouse or hotel). However, there are some further differences to be aware of:

  • The maximum loan to value (LTV) may be lower than a homebuyer mortgage
  • Variable mortgage rates are more commonly used for commercial mortgages. However, fixed-rate mortgages are available from most commercial lenders.
  • Commercial mortgage interest rates tend to be higher than the rates you’d secure on your home. However, unlike homebuyer mortgages, some commercial mortgage rates can be negotiated on a case-by-case basis. An MFB commercial mortgage broker may be able to secure you better terms with a lender. 

Are commercial mortgage rates higher than residential?

Typically, commercial mortgage interest rates are higher than residential or homebuyer mortgages. This is due to the lender’s perceived risk of the loan not being repaid and the resaleability of the property.

How do I get a commercial mortgage?

The quickest way to determine if you can get a commercial mortgage is to speak to one of our expert commercial mortgage brokers. However, this summary will help you decide whether you’re eligible.

Commercial mortgage eligibility is based on your background experience and by assessing your ability to meet the monthly loan repayments. As with any mortgage, commercial mortgage lenders want to see financial evidence that you can repay the lending.

For commercial investment mortgages, for properties you let out to other businesses, lenders will conduct background checks to satisfy the risk, including: 

  • Assessing your net worth
  • The source of your deposit
  • The rental income for the property, either existing or predicted
  • The quality of the tenant and lease term remaining
  • Checking your personal and/or Limited Company bank statements for proof of good accounting
  • FAFT elegibility if an expat or foreign national

For commercial owner-occupier mortgages, where you intend to run your business from the premises, lenders will want to know a lot about you and your business. Therefore, they’ll check:

  • Your net worth
  • The value of your existing or target business
  • The source of your deposit
  • Two to three years’ historical financial accounts for either existing or target business purchases
  • Business bank statements for proof of good accounting

How much deposit do I need for a commercial mortgage?

Generally, commercial mortgage lenders require a minimum 25% deposit for a commercial mortgage. However, this will vary by lender, business sector, and whether it’s an investment or owner-occupier mortgage. As with most mortgages, the larger the deposit you can invest, the better the commercial mortgage interest rates you can access. Speak to our expert mortgage brokers for a definitive answer based on your current circumstances.

Talk to an expert

We handle all types of commercial mortgages, from commercial investment and owner-occupier to semi-commercial. Our experts are eager to help with your future aspirations. Just get in touch through our channels.

Learn more about Commercial mortgages

Discover your new commercial property

The right commercial property is out there. Let’s find it, and we’ll make it yours to own.

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Commercial Investment Property

Secure a loan that suits your investment needs and purchase or refinance a lucrative commercial property.

Find out more

Owner-Occupier Mortgages

Take your business to the next level with your own commercial premises.

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Semi-Commercial Mortgages

Looking for a flexible loan for a residential and commercial property? We can help.

Find out more

Meet our partners

We’ve partnered up with the best in the business to support you across all areas of your property finance journey.

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