Mortgage guide

How to get a commercial mortgage?

The guide explains how to prepare for a commercial mortgage application and what to expect from the process.

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How to get a commercial mortgage?

Getting a commercial mortgage involves a more detailed and tailored process than a residential one, but it can be straightforward with the right preparation and support. The first step is to clearly define your needs whether you’re buying a property for your own business (owner-occupied) or as an investment to rent out. Lenders will want to ensure the loan is affordable, so it’s important to assess your business income or projected rental income against expected mortgage repayments.

Next, you’ll need to gather the necessary documentation. Most lenders will ask for 2 to 3 years of business accounts, recent bank statements, credit reports, and full details about the property you’re purchasing. If the property is already let, you’ll also need to provide a copy of the lease agreement and information about the tenant. Proof of deposit is also essential, as commercial mortgages usually require a 25% to 40% deposit.

One of the most important steps in the process is to speak to a commercial mortgage broker. Commercial lending is far less standardised than residential, and brokers have access to specialist lenders and off-market deals that you might not find on your own. A good broker can assess your circumstances, recommend suitable lenders, and guide you through the application process from start to finish saving you time and potentially a significant amount of money.

Once your broker or lender is happy with the initial details, you’ll usually receive an Agreement in Principle, which outlines how much the lender is willing to offer, subject to further checks. The lender will then arrange a valuation of the property and carry out detailed underwriting, including assessing your finances, business performance, and any risks associated with the property or lease.

If everything stacks up, the lender will issue a formal mortgage offer. Your solicitor will then begin the legal work, including reviewing the title, handling property searches, and finalising mortgage documentation. Once everything is approved and signed off, the funds will be released, and your mortgage will complete.

In total, the commercial mortgage process typically takes 6 to 12 weeks, depending on the complexity of the deal. To give yourself the best chance of success and secure the most competitive rates, it’s strongly recommended to work with an experienced commercial mortgage broker from the outset.

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.

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Indicative estimate only, subject to lender criteria and valuation. This is not a mortgage offer. Your property may be repossessed if you do not keep up repayments.

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.

Commercial mortgage criteria
CriteriaDetail
Max Loan to Value (LTV)80% LTV Care Home Mortgages, 100% LTV Medical Commercial Mortgages, 75% Commercial Investment
Max TermUp to 40 years
CompletionsFrom 4 weeks
Repayment optionsCapital repayment and Interest only
Commercial mortgage ratesFrom 6.19%
Rate optionsVariable, Base Rate Tracker, 2, 3 or 5 year fixed mortgage options
Valuation methodsGoing concern/Investment (Market value 1, MV1), MV2, MV3 or bricks and mortar
Flexible LeasesRolling leases, weak covenants and short time remaining accepted
Adverse creditAccepted on some products on a case by case basis
LocationsAvailable in England, Scotland, Wales and Northern Ireland
ExperienceNot 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.

Commercial Investment Mortgage Rates November 2026

FeatureDetail
Max Loan to Value (LTV)65%
Product fee5% (4.74% for existing customers)
Fixed rate (5 years)6.34%
Some buy-to-let and commercial mortgages are not regulated by the Financial Conduct Authority.

About the author

Joseph Lane CeMAP is an expert commercial mortgage broker

Founder, CEO

Calls and emails here go to Joseph personally, not to a general inbox.

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+44 7487 829005joe@mortgagelane.comMore about Joseph

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Frequently asked questions

Can you get a 90% commercial mortgage?

Yes, 90% loan-to-value commercial mortgages are possible, but only in limited sectors such as healthcare properties, pharmacies, or certain convenience stores with strong trading history. For most other commercial properties, maximum lending is typically capped at around 70% to 75% LTV.

What is a commercial mortgage?

A commercial mortgage is an asset-backed loan secured against commercial, semi-commercial or large-scale investment property. Lenders assess it on income sustainability and asset risk rather than personal income multiples, and pricing is set case by case, usually as a margin over Bank Rate.

What is commercial lending?

Commercial lending refers to loans secured against property used for business purposes, such as offices, retail units, or industrial premises. Terms, rates, and deposits are individually assessed and typically differ from residential mortgages.

What is a commercial bridge?

A commercial bridge is a short-term, property-backed loan used to purchase, refinance, or stabilise commercial or mixed-use property when a standard commercial mortgage is not immediately available. It is exit-driven, typically runs for 3-12 months, uses rolled-up interest, and is repaid through sale or refinance rather than ongoing affordability.

What is a semi-commercial mortgage?

A semi-commercial mortgage is a loan on a property that combines commercial and residential parts, such as a shop with a flat above, and is also called a mixed use mortgage. Lenders assess the combined rental income, the residential proportion and the commercial tenant's lease, or the business where the owner trades from the premises, and it is usually arranged with commercial or specialist lenders. A loan to an individual or trustees is a regulated mortgage contract where at least 40% of the property, measured by floor area, is lived in by the borrower or a related person; otherwise it is usually unregulated business lending.

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