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Commercial Mortgages for Industrial Units

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.

200+ UK lenders
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Rates

4.5% – 7.5%

per annum

Term

5-25 years

Max LTV

Up to 75%

Amount

£100k – £10m

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Mortgage types available

Owner-Occupied

Rate
4.5% - 6.5%
Term
5-25 years
Max LTV
Up to 75%

Best for: Businesses buying the industrial unit they operate from — strong lender appetite given low risk of oversupply and solid operational rationale

Investment

Rate
5.0% - 7.5%
Term
5-25 years
Max LTV
Up to 75%

Best for: Investors acquiring industrial units to let — multi-let industrial estates are particularly attractive due to diversified income streams

Refinance

Rate
4.5% - 7.0%
Term
5-25 years
Max LTV
Up to 70%

Best for: Owners releasing equity from an existing industrial asset or moving from a higher-rate product to a more competitive facility

Key considerations

Eligibility requirements

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Market context

Industrial property has been the standout performing UK commercial sector in recent years, with prime yields compressing significantly and rents growing strongly in key industrial locations. As of 2026, vacancy rates across UK industrial estates remain at historically low levels — typically below 4% in major conurbations. The supply pipeline has been constrained by planning, construction costs, and competition for land, supporting continued rental growth. Small and medium-sized industrial units (up to 20,000 sq ft) are particularly sought after by SME occupiers, and lenders are actively expanding their industrial lending books to meet both owner-occupier and investor demand.

Frequently asked questions

What is the difference between a warehouse mortgage and an industrial unit mortgage?
The distinction is largely one of scale and specification. Industrial units tend to refer to smaller, often multi-let premises used for light manufacturing, trade counter, or storage purposes. Warehouses are typically larger distribution or storage facilities. In practice, many lenders apply similar criteria to both, though very large warehouses (100,000+ sq ft) may require institutional-grade lending arrangements.
Can I get a mortgage on an industrial unit with a contaminated site history?
It is possible but more complex. Lenders will require an environmental survey, and if contamination is identified, the value of the site will be reduced by estimated remediation costs. Some specialist lenders have experience with contaminated land, but many mainstream lenders will decline. A clean Phase 1 report is the ideal starting position; if a Phase 2 is triggered, allow additional time in the deal timeline.
What yield do lenders expect from an industrial investment?
Industrial yields vary by location and property specification. Prime urban industrial can trade at sub-4.5% in markets like London and the South East. Secondary regional estates might be valued at 6-8% yields. Lenders will typically look for the rental income to cover debt service at a stress rate — a Debt Service Coverage Ratio (DSCR) of at least 1.25x is commonly required.
Are trade counter units financed differently to standard industrial property?
Trade counter units are generally considered alongside retail as they have a customer-facing element, but most lenders treat them within the industrial sector framework given their B8/Class E planning use. The key underwriting considerations are similar: lease terms, tenant covenant, specification, and location. Some lenders apply a slight premium to trade counter units due to the higher fit-out investment typically required.
Can I develop a new industrial unit using a commercial mortgage?
Not directly — a standard commercial mortgage requires a completed, tenanted, or owner-occupied asset. New-build industrial development is typically funded through development finance or a senior development loan, with refinance onto a commercial mortgage at practical completion once the asset is operational. Some lenders offer a development-to-investment product that converts at completion, avoiding the need for a two-stage financing process.

Related property types

Warehouse Office Garage & Forecourt

Guides and resources

What Is a Commercial Mortgage? Commercial Mortgage Rates Commercial Mortgage vs Bridging Best Commercial Mortgage Lenders

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