Lendus.

Commercial Mortgages

Buy or refinance commercial property with competitive rates from 200+ UK lenders. Offices, shops, warehouses, pubs, hotels, and more.

What is a commercial mortgage and how much deposit do you need?

A commercial mortgage is a long-term loan secured on business premises, used either to buy property your business trades from or to buy property as an investment. Terms usually run five to twenty-five years, shorter than a residential mortgage, because lenders underwrite against the trading business or the tenant covenant rather than a salaried borrower. Deposits are typically 25% to 40% of the property value. Owner-occupied premises for an established trading business can sometimes reach 75% to 80% loan-to-value; investment property and specialist sectors sit lower.

Owner-occupied versus investment commercial mortgages

Owner-occupiedInvestment
What the lender assessesYour trading accounts and profitabilityRental income and tenant covenant strength
Typical maximum loan-to-valueUp to around 75% to 80%Commonly 60% to 70%
Key risk to the lenderYour business stops tradingThe tenant leaves or defaults
Usually needsTwo to three years of filed accountsLeases, a schedule of tenancies and a valuation

Lenders on our panel for this

Commercial mortgage lenders on the Lendus panel. Most price per case, so published ranges are indicative rather than an offer.

LenderFacility sizePublished rateDecision
Aldermore Bank£2k–£10m4.5%–20%Same-day decisions on asset finance up to £250,000; 3–5 days for larger deals
Allica Bank£25k–£15m9.90%–13.75%Business loan decisions are typically given no later than the next working day. Commercial mortgage offers have been issued within around seven days of application, according to a customer case study published on Allica's own website.
Hampshire Trust Bank£0k–£35mNot publishedBridging finance targets 21 days from application to completion, supported by dual legal representation; specialist mortgage and development finance timescales are assessed case by case with a broker
Investec£5k–£100mNot publishedNo standard timeline is published. Facilities are arranged through a dedicated relationship banker and underwritten individually, so timescales depend on the complexity and size of the deal rather than an automated same-day decision.
LendInvest£75k–£15m0.54%–1.2%Credit decision within 24–48 hours; legal completion 2–4 weeks
OakNorth BankNot publishedNot publishedOakNorth states it typically funds partners within weeks rather than months, and in some cases within days; no fixed guaranteed decision timescale is published
Octopus Real Estate£50k–£100m0.55%–0.85%+No fixed timeframe is published. Octopus states it delivers fast completions, even on complex cases, with a dedicated case team for large bridging and development loans; exact timescales are confirmed once a case is submitted.
Recognise Bank£250k–£10m0.79% per month (bridging, residential security)–9.50% p.a. (commercial mortgage Standard Variable Rate)Online enquiry takes just minutes to submit; Recognise Bank aims to make initial contact within 24 hours and to provide indicative terms within 48 hours. A specific timeframe for final funds release is not published.
Roma Finance£75k–£3mNot publishedService level target of a response within 24 hours; Roma Finance states 80% of RomaFLOW bridging cases complete within 28 days, and cites a record bridging completion of 5.5 hours and a record buy-to-let completion of 6 days
Shawbrook Bank£50k–£25m0.55%–1.25%Indicative terms within 24 hours; completion typically 2–4 weeks
Together£50k–£25m0.55%–1.5%Indicative terms within 24 hours; completion 2–4 weeks
West One Loans£50k–£20m0.55%–1.3%Credit decision within 24 hours; completion typically 2–3 weeks

Figures as published by each lender and dated on its own page. Indicative, not offers.

People also ask

What is the difference between owner-occupied and investment?

Owner-occupied means your business trades from the property, so the lender assesses your trading accounts and the affordability of repayments from business profit. Investment means the property is let to tenants, so the lender assesses the rental income and the strength of the tenant's covenant instead. They are underwritten differently, priced differently, and a lender strong in one is not necessarily competitive in the other.

Are commercial mortgage rates fixed or variable?

Both exist. Most UK commercial mortgages fix for an initial two to five 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. Because the fixed period is usually much shorter than the term, refinancing risk is a real part of the decision.

How long can a commercial mortgage run?

Usually five to twenty-five years, with fifteen to twenty most common. The term is often shaped by the remaining life of the lease if the property is leasehold, and by the age of the borrowing directors where the lender is relying on the trading business.

Is the interest tax deductible?

Interest on a commercial mortgage taken out for business purposes is generally an allowable expense against profits, whereas capital repayments are not. Treatment depends on how the property is held and used, and on whether it sits in a company or personally, so this is a question for your accountant rather than a general rule.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Rates From

4.5% p.a.

LTV

Up to 80%

Terms

5-25 years

Amounts

£100k–£10m+

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Browse by property type

Care Home

Care home finance requires lenders who understand the regulatory environment, the role of CQC registration, and the operational complexity of the sector. We connect buyers and operators with specialist healthcare property lenders.

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Garage & Forecourt

Petrol station forecourts, vehicle sales operations, and motor repair premises require lenders who understand the motor trade sector, fuel retail economics, and the environmental profile of fuel-handling sites.

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HMO

HMO properties, whether small licensed houses or large purpose-built blocks, require specialist finance. We work with lenders who understand HMO licensing, yield calculations, and the complexities of multi-occupancy investment.

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Hotel

Hotel and hospitality finance requires lenders with deep sector knowledge. We connect buyers, operators, and investors with specialist lenders who understand RevPAR, occupancy economics, and the full hospitality spectrum.

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Industrial Unit

Manufacturing facilities, trade counters, and light industrial units are among the most financeable commercial assets in the UK. We match borrowers with lenders who actively seek industrial sector opportunities.

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Commercial Land

Financing commercial land requires lenders who can assess planning potential, development risk, and the strategic value of a site. We source land finance for buyers, developers, and investors at every stage of the planning journey.

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Mixed-Use

Mixed-use buildings, typically combining ground-floor commercial space with residential flats above, require lenders who can assess both income streams accurately. We find the right finance structure for your mixed-use asset.

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Office

Whether you're buying your first office, refinancing existing workspace, or expanding your portfolio of commercial property, we match you with lenders who understand office sector lending.

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Pub

Buying or refinancing a pub involves both property and business finance considerations. We work with specialist licensed trade lenders who understand the sector, from freehouses to managed houses.

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Restaurant Premises

From freehold restaurants in prime locations to investment acquisitions of established food and beverage premises, we match borrowers with lenders who understand the unique dynamics of the restaurant property market.

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Shop

From high-street lock-ups to out-of-town retail units, we source commercial mortgages tailored to the retail sector, whether you're buying, investing, or refinancing.

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Warehouse

Industrial and logistics property continues to be one of the most resilient commercial asset classes. We connect buyers and investors with lenders who understand the warehouse and distribution sector.

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Compare commercial mortgage rates from 200+ lenders, 2 minutes, no credit check

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Representative cost example

Borrow £500,000 over 20 years at 5.5% per annum. Monthly repayment: ~£3,440. Total repayable: ~£825,600. Your rate depends on LTV, property type, and business trading history.

Related resources

Frequently asked questions

What is a commercial mortgage?
A commercial mortgage is a loan secured against a commercial property, offices, shops, warehouses, pubs, hotels, or industrial units. Terms are typically 5-25 years with rates from 4.5% per annum.
How much deposit do I need?
Most commercial mortgage lenders require a deposit of 20-40% of the property value. Owner-occupied properties may qualify for up to 80% LTV, while investment properties typically max out at 70-75% LTV.
Can I get a commercial mortgage for a pub or restaurant?
Yes, though specialist lenders are needed. Licensed premises, hotels, and restaurants are considered specialist property types with additional requirements like trading accounts and licence documentation.
What's the difference between owner-occupied and investment?
Owner-occupied means your business operates from the property. Investment means you're buying to let to tenants. Rates are usually lower for owner-occupied because the lender sees your business as an additional repayment source.
How long does a commercial mortgage take?
A straightforward commercial mortgage typically completes in 6-12 weeks. Complex cases involving specialist properties or large portfolios may take 3-6 months.
Can I get a commercial mortgage with bad credit?
Some specialist lenders consider applicants with imperfect credit, though you'll likely face higher rates and lower LTV ratios. A strong property and business case can offset credit concerns.

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