Mortgage guide
Can I get a bank loan to buy a commercial property?
Yes, you can get a bank loan to buy a commercial property.
- Published
- 4 Aug 2026
- Last reviewed
- 4 Aug 2026
- Reading time
- 3 min
Can I get a bank loan to buy a commercial property?
Yes, you can get a bank loan to buy a commercial property. This type of loan is typically referred to as a commercial mortgage. When considering an application for a commercial mortgage, lenders delve into a detailed underwrite to ensure the viability and security of the loan. Commercial mortgage underwriting usually includes reviewing the borrower’s credit history, past business performance and details in the lease or the accounts. Lenders look for a solid track record of credit management and financial stability. Relevant experience in managing or owning commercial properties or businesses is not essential but can assist borrowers to widen their product options. Lenders use this information to assess the borrower’s ability to handle the complexities of a commercial property, including management and maintenance responsibilities.
Subject to valuation
The physical condition and location of the property are meticulously assessed by commercial mortgage lenders. Properties in prime locations with good structural integrity are more appealing. The property’s ability to attract and retain tenants plays a significant role in the evaluation process. For income-producing properties, lenders examine current lease agreements, occupancy rates, and the financial health of existing tenants. The property’s income history and potential cash flow are critical for determining its ability to cover the mortgage payments and operating expenses. Lenders calculate the DSCR to understand how much net operating income the property generates relative to its debt obligations. A higher DSCR indicates more substantial cash flows and a lower risk for the lender.
Commercial mortgage lenders use these comprehensive assessments to tailor the mortgage terms, deciding on aspects like the loan-to-value ratio, interest rates, repayment schedule, and other loan conditions. Engaging with a knowledgeable broker or advisor can help navigate the complexities of securing a commercial mortgage tailored to specific needs and circumstances.
Commercial mortgage calculator
Choose owner occupier for a business buying or refinancing premises it trades from, assessed on adjusted net profit before tax from the latest accounts, or investment for property let to tenants, assessed on lease income.
Commercial mortgage criteria
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Criteria | Detail |
|---|---|
| Max Loan to Value (LTV) | 80% LTV Care Home Mortgages, 100% LTV Medical Commercial Mortgages, 75% Commercial Investment |
| Max Term | Up to 40 years |
| Completions | From 4 weeks |
| Repayment options | Capital repayment and Interest only |
| Commercial mortgage rates | From 6.19% |
| Rate options | Variable, Base Rate Tracker, 2, 3 or 5 year fixed mortgage options |
| Valuation methods | Going concern/Investment (Market value 1, MV1), MV2, MV3 or bricks and mortar |
| Flexible Leases | Rolling leases, weak covenants and short time remaining accepted |
| Adverse credit | Accepted on some products on a case by case basis |
| Locations | Available in England, Scotland, Wales and Northern Ireland |
| Experience | Not required on certain products |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| Max Loan to Value (LTV) | 65% |
| Product fee | 5% (4.74% for existing customers) |
| Fixed rate (5 years) | 6.34% |
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Frequently asked questions
Can a pension buy commercial property?
Yes. A registered pension scheme, such as a small self-administered scheme (SSAS) or a self-invested personal pension (SIPP), can buy commercial property, including offices, shops, industrial units, warehouses and commercial land, where the scheme's rules and the SIPP provider allow it. The scheme can borrow towards the price, up to 50% of its net assets measured just before the loan, and can let the property to the member's own business at a market rent. Residential property is different: a pension that buys it faces tax charges that can come to more than half of what it cost, with two narrow exceptions.
What is a bridging loan for commercial property?
A bridging loan for commercial property is a short-term, property-backed loan used to purchase, refinance, or stabilise commercial or mixed-use assets when a commercial mortgage is not immediately available. It is exit-driven, typically capped around 75% loan-to-value, and repaid through sale or refinance rather than ongoing affordability.
Can you get a mortgage above a commercial property?
Yes, you can get a mortgage on a property above a commercial unit, but it is classed as mixed-use or non-standard. Lenders assess the type of business below, access arrangements, lease terms, and resale risk, with fewer lenders and in some cases higher deposit requirements than standard residential properties.
What loan-to-value can I get on a commercial equestrian property?
Each lender sets its own loan-to-value for commercial equestrian property such as livery yards, riding schools and competition yards, lending against a component valuation of the land, buildings, dwelling and any trade. The planning position, the strength of the accounts and the operator's experience move the figure. Farms and agricultural holdings with equestrian use are funded on agricultural or rural lending, and bare land on land lending, each at the lender's own limits, so an adviser checks current criteria for the specific property.
What is a commercial buy-to-let mortgage?
A commercial buy-to-let mortgage is a specialist investment loan used to purchase or refinance income-generating residential or mixed-use property that falls outside standard buy-to-let criteria. Lending is assessed on rental income, asset quality, and risk profile rather than residential affordability alone.
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