Lendus.

Commercial Mortgages for Retail Premises

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.

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

Rates

5.0% – 8.0%

per annum

Term

5-25 years

Max LTV

Up to 70%

Amount

£75k – £5m

Compare shop commercial mortgage rates

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Mortgage types available

Owner-Occupied

Rate
5.0% - 7.0%
Term
5-25 years
Max LTV
Up to 70%

Best for: Retailers buying their own trading premises — removes exposure to rent rises and provides a capital asset on the balance sheet

Investment

Rate
5.5% - 8.0%
Term
5-20 years
Max LTV
Up to 65%

Best for: Property investors acquiring shops to let — lender focus on tenant covenant, remaining lease length, and rental yield coverage

Refinance

Rate
5.0% - 7.5%
Term
5-25 years
Max LTV
Up to 65%

Best for: Owners looking to release equity or move to a better rate — particularly relevant for those holding freehold retail assets with strong tenants

Key considerations

Eligibility requirements

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Market context

The UK retail property market is undergoing a significant structural transition. While prime retail locations in major cities continue to attract institutional investment, secondary and tertiary high streets face sustained pressure. As of 2026, vacancy rates in some regional town centres exceed 15%, and lenders have responded with tighter criteria for non-prime retail. Convenience retail, food-and-beverage anchored schemes, and click-and-collect compatible units are seeing renewed lender interest. The average retail unit commercial mortgage in the UK completes in 8-10 weeks.

Frequently asked questions

Is it harder to get a commercial mortgage on a shop than an office?
In the current market, yes — retail is viewed as a higher-risk sector than offices by most lenders, which is why maximum LTVs for shops (typically 70%) are slightly lower than for offices. Location and tenant quality play a significant role; a well-located shop with a strong national tenant is treated very differently to a secondary high-street unit with a short lease.
Can I get a commercial mortgage for a small shop costing under £100,000?
Some specialist lenders will consider retail properties below £100,000, but the choice of lenders narrows significantly at lower values. Legal and valuation costs are largely fixed regardless of property value, so smaller deals can be relatively expensive to complete. A commercial mortgage broker can identify which lenders have no minimum value restrictions.
What happens if my shop tenant stops paying rent?
Rental voids are a key risk for investment retail mortgages, and lenders will typically stress-test the loan against a period of vacancy. As the borrower, you remain liable for mortgage payments regardless of whether your tenant is paying. It's important to maintain a cash reserve and consider rent guarantee insurance or rent deposit deeds when structuring tenancy agreements.
Can I convert a shop to residential and still use a commercial mortgage?
If you intend to convert the property to residential use, you would typically need planning permission (via permitted development rights or a full application) and bridging or development finance rather than a standard commercial mortgage. Once converted and either sold or refinanced as residential, the finance structure would change accordingly.
Do lenders care about the type of retail use?
Yes. Lenders consider the sustainability of the occupier's trade. Convenience retail, health and beauty, food and drink, and service-based retail tend to attract stronger lender confidence than luxury goods or discretionary spend categories. Properties with planning permission restricted to a single, niche use may also be viewed less favourably due to reduced re-letting flexibility.

Related property types

Mixed-Use Restaurant Premises Office

Guides and resources

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

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