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Commercial mortgage calculator

What are the monthly repayments on a commercial mortgage?

A £500,000 commercial mortgage over 20 years at 7% costs about £3,876 a month and £930,359 in total. Add a typical £7,500 arrangement fee to the balance and it becomes £3,935 a month and £944,314. Commercial mortgages usually need a 25%–40% deposit, so a £500,000 loan implies a property worth £667,000 to £833,000.

Updated . Lendus is an introducer, not a lender, these figures are indicative and not a quote.

£500,000
240 months
7%

UK commercial mortgages typically run 5.5%–9% depending on LTV, sector and covenant strength.

£7,500

Commonly 1%–2% of the loan, often added to the balance.

Your estimate

Indicative only. Not a quote and not an offer of finance.

What this calculator assumes

Frequently asked questions

How much deposit do I need for a commercial mortgage?
Typically 25% to 40% of the property value. Owner-occupied premises for an established trading business can sometimes reach 75%–80% loan-to-value; investment property, specialist sectors such as pubs and care homes, and weaker covenants sit nearer 60%–65%.
How long can a commercial mortgage run?
Usually 5 to 25 years, with 15 to 20 years the most common. Terms are generally shorter than residential mortgages because lenders underwrite against the trading business or the tenant covenant rather than a salaried borrower.
Are commercial mortgage rates fixed or variable?
Both exist. Most UK commercial mortgages fix for an initial 2 to 5 years and then move to a variable rate set at a margin over the Bank of England base rate or SONIA. Longer fixes are available but carry a rate premium and heavier early repayment charges.
Is the interest tax deductible?
Interest on a commercial mortgage taken out for business purposes is generally an allowable expense against profits, unlike capital repayments. Treatment depends on how the property is held and used, take advice from your accountant rather than relying on a general rule.

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