Mortgage guide

Commercial Mortgages: detailed guide

We offer mortgage solutions for commercial properties. We can assist all commercial property types for investment and owner occupation.

Written by an adviser at Mortgage Lane CeMAP · FCA authorised firm

Published: 4 Aug 2026
Last reviewed: 4 Aug 2026
Reading time: 11 min

Hotel Mortgages

Lenders typically require a personal guarantee, supported by strong credit history and demonstrable equity. Underwriting for hotel commercial mortgages is detailed and will usually include a review of business plans, historic accounts, tax returns, and cash-flow projections to confirm the ability to service debt over the long term.

Mortgage for a medical practice

A mortgage for a medical practice is a specialist form of commercial lending used to purchase, refinance, or release capital against premises occupied by healthcare professionals, including GP surgeries, private medical clinics, dental practices, and specialist consulting facilities. Medical practices are generally regarded as defensive, low-risk assets, particularly where income is underpinned by NHS contracts or long-standing private patient bases.

Mortgages for Farms

Agricultural lending is a specialist area, and our role is to identify the most appropriate mortgage structure by matching each case to lenders with genuine rural and farming appetite.

Equestrian Mortgages

Equestrian mortgages can support land purchases, properties with equestrian use and horse-related businesses. Read about the finance options for these different uses.

Restaurant Mortgages

Commercial mortgages for restaurants are typically available at up to 75% loan-to-value (LTV), allowing operators to retain working capital while investing in their premises.

Commercial Mortgage for Offices

Commercial office mortgages are typically available at 60% to 75% loan-to-value (LTV), with the final terms influenced by the borrower profile, property characteristics, and income security. Lender appetite varies significantly across the market, making correct structuring and lender selection critical.

Commercial warehouse mortgage

Warehouse lending remains one of the strongest areas of commercial finance, but criteria varies widely between lenders. Our role is to identify the most appropriate lender and structure, ensuring the mortgage aligns with both the asset and long-term strategy.

Industrial mortgages

Understanding this distinction is critical, as affordability is stress-tested in very different ways.

Commercial mortgages for pharmacies

Pharmacy mortgages are a specialist area of healthcare lending used to purchase, refinance, or release capital from pharmacy premises, including high-street chemists, medical-centre pharmacies, and standalone pharmaceutical outlets. Pharmacies are widely viewed by lenders as defensive, low-risk healthcare assets, particularly where income is underpinned by stable NHS contracts.

Carehome Mortgages

Because care homes serve vulnerable residents, commercial mortgage lenders apply enhanced scrutiny to both the property and the operation.

Pub Mortgages

Pub commercial mortgages are typically available at 65% to 75% loan-to-value, depending on trading performance, asset quality, and operator experience. For trading pubs, lenders commonly assess affordability using EBITDA-based lending, which can significantly increase borrowing capacity compared to asset-only assessments.

Guest House Mortgages

For established, trading guest houses, up-to-date accounts are critical. Where a business demonstrates consistent profitability, lenders can instruct a Market Value 1 (MV1) valuation, which reflects the value of the property together with the trading performance of the business. MV1 valuations are commonly used to maximise borrowing potential, as they capture sustainable earnings in addition to the underlying asset value.

Commercial Retail Mortgages

Retail investment lending is assessed primarily on the strength and sustainability of rental income, rather than personal income. Lenders focus on tenant quality, lease structure, and location, with borrowing ultimately capped by the lower of affordability or LTV.

Commercial mortgage for factory

A commercial mortgage for a factory can be used to purchase, refinance, or raise capital against manufacturing and production facilities, with lending decisions driven by a combination of asset risk, business performance, environmental due diligence, and exit strategy.

Healthcare business mortgages

Because healthcare properties are often underpinned by stable demand and contracted or predictable income, lenders with sector expertise are able to offer bespoke funding structures that differ materially from standard commercial mortgages.

Getting a mortgage on a storage unit

Storage facility lenders assess operator experience, occupancy, rental agreements and sustainable income. Read how those factors affect valuation and mortgage terms.

Commercial Mortgages England

England is one of the UK’s busiest markets for commercial property, with strong demand across retail, office and mixed-use spaces.

Commercial Mortgages Scotland

Scotland is a key region for commercial property investment, with high demand across farms, restaurants, pubs, and industrial mortgages.

Commercial Mortgages Wales

Wales is home to a thriving commercial property market, with strong demand across Cardiff, Newport, Swansea, and beyond.

Commercial Mortgages Northern Ireland

Northern Ireland offers strong opportunities for commercial property investment, with demand across sectors like care homes, guest houses, healthcare facilities, and storage units.

How hard is it to get a commercial mortgage?

Securing a commercial mortgage isn’t necessarily hard, but can be more challenging than obtaining a residential mortgage, primarily due to the greater risks associated with commercial property investments.

How much deposit is needed for a commercial mortgage?

For a commercial mortgage, a deposit of approximately 25% of the property’s total value is typically required, especially with investment commercial purchases.

What is the minimum deposit for commercial property?

The minimum deposit for commercial property is usually around 25% to 30% of the property’s purchase price. However, the exact amount can vary depending on the type of property, the risk profile of the business or investment, and the lender’s criteria.

Who is the largest commercial mortgage lender?

In the UK, there isn’t a single lender universally recognised as the largest commercial mortgage provider, as the market is diverse and includes a mix of high street banks, challenger banks, and specialist lenders, each dominating in different areas.

Why are commercial mortgages more expensive?

Commercial mortgages are generally more expensive than residential or buy-to-let mortgages, and this comes down to several key factors related to risk, complexity, and how each deal is assessed.

Can I get a 100% commercial mortgage?

Getting a 100% commercial mortgage meaning borrowing the entire purchase price without putting down any deposit, is very rare, but not completely impossible. Most lenders typically require a deposit of 25% to 40% of the property’s value, since commercial lending is considered higher risk than residential lending.

Is it worth buying commercial property?

Buying commercial property offers a range of compelling benefits, especially for business owners and investors looking for long-term returns and greater control over their assets.

What are the disadvantages of a commercial mortgage?

While commercial mortgages can provide long-term ownership benefits and help businesses build equity, they come with several notable disadvantages.

What is the maximum term for a commercial mortgage?

The maximum term for a commercial mortgage is usually up to 25 years, but this can vary depending on several factors, including the type of mortgage, the borrower’s profile, and the property itself.

Can you get an interest-only mortgage on a commercial property?

Yes, it is possible to get an interest-only mortgage on a commercial property, but availability depends on the type of property, your business profile, and the lender’s criteria.

Can I use a Commercial mortgage if I am buying at auction?

A commercial mortgage may be possible, but legal searches and underwriting must fit the auction deadline. The guide explains why buyers may consider bridging finance where time is limited.

How much commercial mortgage can i afford?

How much commercial mortgage you can afford is determined primarily by income sustainability and debt servicing capacity, not personal income multiples. Commercial lenders assess affordability using a cash-flow-led model, supported by property value and sector risk.

Is a commercial mortgage more expensive?

A commercial mortgage is generally not cheaper than a residential mortgage. In fact, commercial mortgages often come with higher interest rates and fees, largely because lenders view them as higher risk. Unlike the residential mortgage market, which is highly regulated and competitive, the commercial mortgage market is more specialised and less standardised, which often leads to more variation in pricing.

Can I get a bank loan to buy a commercial property?

Yes, you can get a bank loan to buy a commercial property.

What is the minimum commercial mortgage?

Read about minimum borrowing amounts and the lender criteria that affect smaller commercial mortgage applications.

What is meant by commercial mortgage?

A commercial mortgage is a type of loan specifically designed for purchasing or refinancing property that is used for business purposes.

How to get a commercial mortgage?

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

How much do I need to put down for a commercial mortgage?

For a commercial mortgage, you’ll typically need to put down a deposit of 25% to 40% of the property’s value. The exact amount will depend on factors such as the type of property, the lender’s criteria, your financial strength, and whether the mortgage is for owner-occupier use or commercial investment.

Is a commercial property worth more with a tenant?

Yes, a commercial property is generally worth more with a tenant in place, particularly if that tenant is financially strong and on a long-term lease. The presence of a reliable tenant means the property generates stable, predictable income, which makes it more attractive to both investors and lenders.

How is affordability calculated on Commercial mortgages?

For investors Commercial mortgage lenders will use the lease income of the security property, which is the property you are buying or remortgaging.

What is a Commercial mortgage?

A commercial mortgage is a type of loan used to buy, refinance, or develop property for business use. Unlike residential mortgages, which are meant for homes people live in, commercial mortgages are designed for properties like offices, shops, warehouses, factories, restaurants, hotels, and other business premises.

What does commercial mortgage mean in business?

A commercial mortgage in business refers to a loan taken out by a company or business owner to purchase, refinance, or develop commercial property.

What are floor space and valuation split requirements for commercial mortgages?

Floor space %: Some lenders might have a minimum percentage that they would like to be residential, for instance, 60%.

What is the minimum term for a commercial lease?

The minimum term for a commercial lease can vary depending on the lender and the type of mortgage being applied for.

What is a typical commercial mortgage rate?

Commercial mortgage rates depend on the borrower, property and lender assessment. Read about the factors that affect the rate offered for a particular deal.

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Speak to a Mortgage Lane adviser about your circumstances and the next steps.

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