Commercial mortgages are longer-term loans designed to help businesses to purchase property or land for commercial purposes. Commercial mortgages can be used for a wide range of properties including offices, retail, semi-commercial, agricultural, residential, homes of multiple occupancy (HMOs), multi-unit freehold blocks (MUFB), buy-to-let, holiday homes and more. The property or land can be used by the business as its premises or leased out. Below we have explored a wide range of commercial mortgage providers.
Companies are ranked in no particular order.
| Company | Max LTV | Max Term | Max Total Amount |
|---|---|---|---|
| ABC Finance | 80% | 30 years | Not stated |
| Aldermore | 75% | 20 years | £25 million |
| Assetz Capital | 75% | 20 years | £10 million |
| Barclays | Not stated | 25 years | Not stated |
| Clydesdale Bank | 70% | 20 years | Not stated |
| Cambridge & Counties Bank | 70% | 25 years | £15 million |
| Cumberland Building Society | 75% | 30 years | £2 million |
| Cynergy Bank | 70% | 10 years | Not stated |
| HSBC | 75% | 30 years | No maximum |
| ICICI Bank UK | 60% | 7 years | £25 million |
| InterBay | 80% | 30 years | No maximum |
| Landbay | 80% | Not stated | £2 million |
| Lloyds Bank | 70% | 25 years | Not stated |
| Mansfield Building Society | 75% | Not stated | Not stated |
| NatWest | Not stated | 25 years | £10 million fixed, no limit on variable |
| Paragon Bank | 75% | Not stated | £1 million or £10 million for portfolios |
| Proplend | 75% | 5 years | £5 million |
| Rangewell | 80% | 20 years | No maximum |
| Redwood Bank | 70% | 25 years | £5 million |
| Royal Bank of Scotland | Not stated | 25 years | £10 million fixed, no limit on variable |
| Satellite Finance | 75% | 30 years | £40 million |
| State Bank of India (UK) | 70% | Not stated | Not stated |
| Together Business Finance | 65% | 30 years | £250,000 |
| TSB | 70% | 25 years | Not stated |
| West One Loans | 75% | 25 years | £1.5 million |
| Yorkshire Bank | 70% | 20 years | Not stated |
1. ABC Finance
- Broker service for commercial mortgages
- No broker fees for loans over £100,000
- Will seek out the best mortgage deal from a wide range of lenders
- Available for business, investment, semi-commercial, complex and agricultural
- Fixed or variable rates
- Terms up to 30 years
- Choice of an interest-only, capital repayment or part and part
- Set up fees can apply
- Suitable for individuals, sole traders, partnerships, LLPs and limited partnerships
- Apply online or call them to discuss your needs
Website ABC Finance Commercial Mortgages
Read the full ABC Finance review
2. Aldermore
- Offers a variety of commercial mortgages
- Variable rate mortgages
- Fixed rates over 3, 5 or 7 years
- Borrowing up to 75% LTV
- Mortgages from £50,000 to £25 million
- Terms up to 20 years
- Suitable for a wide range of properties including residential, mixed use and commercial
- Offers VAT loans for applicable properties
- Available to a range of applicants including complex corporate structures
- Apply through a broker
Website Aldermore Commercial Mortgages
Read the full Aldermore review
3. Assetz Capital
- Offers flexible and tailored commercial mortgages
- Mortgages are structured and priced on their own merit
- Provides 1st and 2nd charge products
- Maximum LTV of 75%
- Maximum loan of £10 million
- Borrower rates from 5.99%
- Terms up to 20 years
- Fixed rates
- Offers interest-only periods
- Apply online or call them to discuss your needs
Website Assetz Capital Commercial Mortgages
Read the full Assetz Capital review
4. Barclays
- Offers commercial, business, agricultural and buy-to-let mortgages
- Minimum borrowing of £25,000
- Terms of 1 to 25 years
- Choice of fixed or variable rate mortgages
- Fixed-rate mortgage for up to 10 years
- Suitable for a range of uses
- Capital repayment holiday is available
- Early repayment fees may apply
- Open to new and existing customers
- Contact them by phone to find out more and apply
Website Barclays Commercial Mortgages
Read the full Barclays review
5. Clydesdale Bank
- Offers a commercial mortgage product
- Borrow from £25,000
- Terms up to 20 years
- Loans up to 70% of LTV
- Capital and interest or interest-only options available
- Choice of fixed and variable rates
- Fixed rates up to 5 years
- Offers capital repayment holidays up to 5 years
- Arrangement fees apply
- Apply over the phone
Website Clydesdale Bank Commercial Mortgages
Read the full Clydesdale Bank review
6. Cambridge & Counties Bank
- Offers commercial owner occupier mortgages
- Interest-only option available
- Up to 70% LTV
- Maximum borrowing per customer of £15 million
- Terms from 1 to 25 years
- Personal guarantees not always required
- No valuation fee payable until loan is approved
- Must have been trading for over 12 months
- Available in England, Scotland and Wales
- Apply over the phone or in branch
Website Cambridge & Counties Bank Property Development Finance
Read Cambridge & Counties Bank Reviews
7. Cumberland Building Society
- Offers a range of residential and commercial mortgages
- Suitable for buy-to-lets, holiday lets, guest houses, hotels and B&Bs
- Specialises in hospitality and tourism sector
- Offers a flexible approach
- Up to 75% LTV
- 2 year variable rate
- 2 or 5 years fixed rate
- Loans up to £2 million
- Arrangement fee applies
- Maximum term of 30 years
Website Cumberland Building Society Commercial Mortgages
Read Cumberland Building Society Reviews
8. Cynergy Bank
- Offers a variety of commercial mortgages
- Suitable for buildings and land for business purposes
- 10 year term
- Capital repayment loan
- Interest repayment loan
- Up to 70% LTV
- Suitable for commercial, residential and mixed use
- Available for buy-to-let properties
- Also offers property investment and development loans
- Apply over the phone
Website Cynergy Bank Commercial Mortgages
9. HSBC
- Offers a commercial mortgage solution
- Minimum loan amount of £25,001
- No maximum loan amount
- Up to 75% LTV
- Terms from 2 to 30 years
- Choice of variable and fixed rates
- Monthly or quarterly repayments
- Capital repayment holidays are available in the first 24 months
- Fees may apply
- Apply over the phone
Website HSBC Commercial Mortgages
Read the full HSBC review
10. ICICI Bank UK
- Offers commercial property finance products
- Suitable for new properties, refinancing and releasing equity
- Caters for a wide range of property types
- Minimum loan of £1 million
- Maximum loan of £25 million
- Up to 60% LTV
- Loan term up to 7 years
- Competitive interest rates
- Available for properties in England, Scotland and Wales
- Enquiry online
Website ICICI Bank UK Commercial Mortgages
11. InterBay
- Provides a range of commercial mortgages
- Available through a broker only
- Variable interest rates
- No maximum loan size
- Terms from 2 to 30 years
- Interest-only options available
- Arrangements fees apply
- An administration fee may apply
- Early repayment charges may apply
- Apply through a broker only
Website InterBay Commercial Mortgages
Read the full InterBay review
12. Landbay
- Offers a wide range of commercial mortgages
- Available to brokers only
- Suitable for standard, HMOs and multi-unit freehold blocks (MUFB)
- Caters for individuals, limited companies. SPVs, landlords
- Initial periods of 2 or 5 years
- Up to 80% LTV
- Loans up to £2 million
- Fixed or tracker products
- Offers Green mortgage range with exclusive rates for properties with EPC A or B rating
- Apply through a broker only
Website Landbay Commercial Mortgages
Read the full Landbay review
13. Lloyds Bank
- Offers commercial and residential buy-to-let mortgages
- Mortgages from £25,001
- Maximum mortgage amount not stated
- Terms from 3 to 25 years
- Up to 70% LTV
- Choice of fixed or variable interest rates
- Capital repayment holidays may be available
- Arrangement fees apply
- Security and valuation fees may be also be charged
- Apply over the phone
Website Lloyds Bank Commercial Mortgages
Read the full Lloyds Bank review
14. Mansfield Building Society
- Offers landlord and buy-to-let mortgages
- Standard Buy-to-Let mortgages for existing professional landlords
- Holiday buy-to-let mortgages
- Up to 75% LTV
- Initial terms of 2, 3 or 5 years
- Set up fees apply
- Early repayment charges can apply
- Has an online mortgage calculator
- Available for properties in England and Wales
- Enquire online, over the phone or in branch
Website Mansfield Building Society Commercial Mortgages
Read the full Mansfield Building Society Mortgage review
15. NatWest
- Offers a commercial mortgage product
- Minimum loan of £25,001
- Maximum loan of £10 million on a fixed rate
- No limit on variable rate mortgages
- Terms up to 25 years
- Choice of fixed and variable interest rates
- Repayment holidays available
- No early repayment charges
- Arrangement and security fees may apply
- Enquire online
Website NatWest Commercial Mortgages
Read the full NatWest review
16. Paragon Bank
- Offers a range of commercial mortgages
- Portfolio and non-portfolio landlords
- Limited company lending
- Short-term finance
- Suitable for HMOs, multi-unit block and holiday lets
- Up to 75% LTV
- Loans from £30,000
- £1 million per property or £10 million for portfolios
- Available for properties in England, Wales and Scotland
- Can only apply through an intermediary
Website Paragon Bank Commercial Mortgages
Read the full Paragon Bank review
17. Proplend
- Offers commercial property funding
- Mortgages for up to £5 million
- Terms of up to 5 years
- Flexible mortgages
- Interest-only term mortgage
- Up to 75% LTV
- Decisions can be made in days
- Funding can be received in weeks
- Available to SPVs and personal borrowers
- Enquire online or call them
Website Proplend Commercial Mortgages
Read the full Proplend review
18. Rangewell
- Offers large scale funding as commercial mortgages
- Minimum loan of £50,000
- No maximum loan amount
- Up to 80% LTV
- Terms up to 20 years
- Rates from 2% over the base rate
- Suitable for commercial, residential and land
- Can be tailored to your circumstances
- Choice of repayment and interest-only options
- Enquire online or over the phone
Website Rangewell Commercial Mortgages
Read the full Rangewell review
19. Redwood Bank
- Offers a range of commercial mortgages
- Caters for business owners and professional landlords
- Offers mortgages suitable for property refurbishment
- Interest-only mortgages available
- £125,000 to £5 million
- Terms of 2 to 25 years
- Up to 70% LTV
- Quick decisions
- Available in England, Wales and Scotland
- Apply over the phone
Website Redwood Bank Commercial Mortgages
20. Royal Bank of Scotland
- Offers commercial mortgages for buying or remortgaging
- Choice of fixed and variable interest
- Loans from £25,001
- No upper limit on the variable interest rate
- £10 million limit on the fixed interest rate account
- Terms up to 25 years
- No early repayment charges
- Repayment holiday available
- Arrangement and security fees apply
- Enquire online or over the phone
Website Royal Bank of Scotland Commercial Mortgages
Read the full Royal Bank of Scotland review
21. Satellite Finance
- Offers a range of commercial mortgages
- Brokerage service
- Can assist you in finding the best deal
- Minimum loan of £50,000
- Maximum loan of £40 million
- Up to 75% LTV
- Rates from 2.25% above the base rate
- Terms from 5 to 30 years
- Fixed repayments
- Enquire over the phone
Website Satellite Finance Commercial Mortgages
Read the full Satellite Finance review
22. State Bank of India (UK)
- Offers commercial lending products including mortgages
- Available to commercial owner-occupier
- Offers commercial investment mortgages
- Suitable for residential, retail, office, light industrial and hotels
- Also suitable for buy-to-let
- Up to 70% LTV
- Loans from £250,000
- Repayment holidays may be available
- Arrangement fees apply
- Early repayment charges may apply
Website State Bank of India (UK) Commercial Mortgages
23. Together Business Finance
- Offers a range of commercial mortgages
- Also offers buy-to-let mortgages
- Suitable for commercial, semi-commercial, land and secure commercial
- Up to 65% LTV
- Loans up to £250,000 on terms up to 30 years
- Arrangement or processing fee applies
- Early repayment charges will occur
- Redemption administration fee applies
- Available direct or through a broker
- Enquire online
Website Together Business Finance Commercial Mortgages
Read the full Together Business Finance review
24. TSB
- Offers commercial mortgage for purchasing or remortgaging
- Mortgages from £25,001
- Terms up to 25 years
- Up to 70% LTV
- Choice of a variable or fixed rate
- Capital repayment holidays are available
- Arrangement fees apply
- Security fees apply
- Available to UK businesses
- Apply over the phone
Website TSB Commercial Mortgages
25. West One Loans
- Offers buy-to-let mortgages
- Standard mortgages for non-complex properties
- Specialist mortgages for complex transactions such as HMO/MUFBs, holiday lets
- Fast completion on mortgages under £750k
- Loans from £50,000
- Maximum loan of £1.5 million
- Terms of 5 to 25 years
- Up to 75% LTV
- Minimum property value of £100,000
- Also offers second charge mortgages
Website West One Loans Commercial Mortgages
Read the full West One Loans review
26. Yorkshire Bank
- Offers a commercial mortgage product
- Borrow from £25,000
- No maximum amount is stated
- Terms up to 20 years
- Up to 70% LTV
- Choice of capital and interest or interest-only repayment
- Fixed-rate up to 5 years
- Combination of fixed and variable rates
- Capital repayment holidays up to 5 years available
- Apply over the phone
Website Yorkshire Bank Commercial Mortgages
Read the full Yorkshire Bank review
FAQ
How does a commercial mortgage work?
Commercial mortgages are a loan that allows businesses to purchase a property or land. It is often used to purchase property for the business to operate from, but commercial mortgages can also be used to invest in property to lease out to tenants either commercial or residential.
The loan is secured against the property as a first charge and borrowing against the property is normally up to no more than 80% of the property value which allows the lender to recoup their loan if the business defaults on the loan.
Commercial mortgages can be over terms up to 30 years with the choice of a fixed or variable rate of interest. Fixed interest rates are normally for an initial term of 2 to 5 years although the loan term is for longer.
How much can I borrow?
The amount you can borrow will depend on a few factors which include the value of the property, the lender and your credit status.
Many providers do not advertise an upper limit on their commercial mortgages, however, some lenders offer as much as £10-40 million.
The limit that most lenders impose is a percentage of the value of the property you are receiving the loan on which can vary up to 65-80% depending on the property type and the lender.
How much will a commercial mortgage cost?
Commercial mortgage rates are not commonly published by the lender, but you can choose between fixed or variable interest rates which can impact the cost of the mortgage.
There is also a range of other costs that may apply depending on the lender which includes arrangement fees, security fees, valuation fees, legal/processing fees, broker fees and early repayment fees may also apply.
How long can I borrow money for?
Commercial mortgages tend to be for longer periods of time than other loans and can be for periods up to 30 years.
Lenders however tend to offer commercial mortgages that range from 5 to 30 years although many have terms only up to 25 years.
How to apply for a commercial mortgage?
You can apply directly to the lender or use a specialist broker to find the right commercial mortgage for you.
Most lenders will require you to complete a mortgage application in person or over the phone, however, you can often start the process online or over the phone.
As part of the application process, the lender will undertake checks on your business which can include credit checks and assessing the business’ profitability, this will determine the amount that they will offer as a loan.
There will also be a valuation on the property or land that you are purchasing.