What is a commercial mortgage?
A commercial mortgage is a long-term loan secured against a non-residential property. That could be an office, a shop, a warehouse, a restaurant, a factory, or any building used for business purposes. Monthly repayments are spread over a term of 10 to 25 years, with interest rates that can be fixed or variable depending on the lender and your circumstances.
Commercial lending works differently from residential mortgages. Deposits are higher (typically 25% or more), the assessment is based on your business accounts rather than just personal income, and each deal is individually negotiated. That is exactly why having a broker matters. We know which lenders suit which situations, and we handle the negotiation for you.
Types of commercial mortgage
How does the process work?
Initial conversation
We review your accounts, understand the property, and explain what is realistically available. No commitment needed at this stage.
We compare options
We approach lenders across the market and present a shortlist. We talk you through the rates, fees, flexibility and any conditions attached to each offer.
Application and underwriting
We handle the paperwork, manage the lender's questions, and chase the valuation and legal work to keep things moving.
Completion
Funds are released and the purchase completes. We stay available for any questions during the life of the mortgage.
Costs and rates
Commercial mortgage rates vary depending on the lender, the property type and your financial position. As a rough guide:
- Interest rates from around 3.5% upwards (high street) to 8% or more (specialist lenders)
- Arrangement fees of 1% to 2% of the loan amount
- Valuation fees, legal fees and broker fees also apply
- Fixed or variable rate options available
We always set out the full cost picture before you commit to anything, so there are no surprises.
Why use a broker for commercial finance?
Commercial lending is not like walking into a bank and applying for a residential mortgage. Each case is assessed individually, and lenders have very different appetites depending on the sector, location and size of the deal. We have direct relationships with decision-makers at the banks and funds that underwrite commercial property. That means faster responses, better terms, and fewer wasted applications.