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Compare Commercial Mortgages

  • Commercial mortgages are available for businesses looking to buy non-residential property
  • The table below compares commercial mortgage providers from our panel of business lenders
2 products found
    • THINK Business Loans Commercial Mortgages logo
      Broker

      THINK Business Loans Commercial Mortgages

      • Speak to a commercial mortgage expert
      • Rates from 1.8% APR (over Base)
      • 85% LTV & BTL, HMO and Interest Only options available
      • Minimum Turnover
        Must be profit-making
      • Available Amounts
        From £250,000
      • Available Terms
        5 to 30 years

      Company details

      • THINK's funding platform matches your businesses eligibility against hundreds of lenders instantly (without a credit check)
      • THINK are the UK's leading business lending specialists; their experts are on hand to guide you through the process
      • Find the perfect loan in minutes - Make the lender work for you

      Eligibility criteria

      • Must have at least 6 months trading history
      • Deposit required (cash or equity)
      • Trading Business or Investment applications accepted
    • B2Bfinance.com Limited Company Buy-To-Let Mortgages logo
      Broker

      B2Bfinance.com Limited Company Buy-To-Let Mortgages

      • No broker fee and whole of market access
      • Digital finance brokerage who advise, package and present your case to multiple lenders
      • B2B can assist with purchasing new BTL property, refinancing/capital raising on existing BTL, or shifting a personally owned BTL property into a Limited Company.
      • Minimum Turnover
        No minimum
      • Available Amounts
        £100,000 to £750,000,000
      • Available Terms
        1 to 30 years

      Company details

      • No broker fee
      • Whole-of-market coverage
      • 100% online application process (including digital signatures)
      • Brokers are experienced ex-high street bank staff

      Eligibility criteria

      • Only available to Limited Companies
Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. You can use the options above the table to order it according to various criteria.

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How to choose a commercial mortgage

If you need a mortgage to buy a non-residential property for your business, you’ll be looking to get a commercial mortgage. Although similar to residential mortgages in many ways, there are notable differences that you may not be aware of.

Commercial mortgage providers range from specialist lenders to high street banks and each will offer different terms and loan amounts, as well as having varying lending criteria. It’s important to consider your options when choosing between them, and remember, your personal credit records, as well as those of your business, will come into play during the decision-making process.

Our guide below can help you to understand your options a little better and find the right commercial mortgage for your specific business requirements.

Choosing between commercial mortgages

When comparing commercial mortgages, there are a number of factors that you’ll need to consider:

  • How much you can borrow: Lenders will decide how much to lend you based on criteria such as your deposit amount, your credit record and business finances and the value of the property you are purchasing. There will be a loan-to-value limit for each commercial mortgage product available and you’ll need to work out how much you need to borrow based on the value of the property you want to purchase and the value of your cash deposit
  • How long you can borrow for: Along with the loan amount, the loan term you are offered will also vary depending on the provider as well as your personal circumstances. Generally, commercial mortgage loan terms range from around 3 years to 25 years.
  • Interest rate: This is an area where commercial mortgages often differ from residential mortgages. While residential mortgages will often offer a set interest rate, it’s less easy to get a concrete interest rate offer from a commercial mortgage provider until you are further into the application process.
  • Type of mortgage: Typically, your rate will be quoted as a percentage over LIBOR, which is what would be called a tracker mortgage in residential purchasing terms. Although fixed-rate mortgages are available, they can sometimes come with higher interest rates, and might only be accessed on properties worth less than £500,000.
  • Other costs: Very often with a commercial mortgage, there will be other costs involved with taking out the mortgage, on top of the interest payment. Arrangement fees are often applicable, along with early repayment fees, valuation fees and legal fees. Some lenders will also want money to cover the work they do if you do not accept the offer given. In these circumstances, you may be charged a commitment fee which is payable with your application and is non-refundable. Most arrangement fees are then lumped into the loan itself and usually come in at about 1-2% of the total loan amount.

Meeting commercial mortgage lending criteria

When choosing a commercial mortgage, much of your decision making may be determined by each provider’s lending criteria. It makes sense to assume that a lender will want to carry out a detailed check of your business and personal credit records to assess your creditworthiness. They will also want to check your business accounts to determine that your finances are stable and that you can afford the repayments.

As well as checking your finances, the lender is likely to want to value the property you are purchasing to ensure it is worth enough to cover the cost of the loan if you cannot afford the repayments.

If you have a large deposit to put forward, you may find it easier to secure a commercial mortgage from a lender and rates may also be lower than if you require a higher loan-to-value. This is something to take into account when choosing between commercial mortgages. It’s important to note that, as with a residential mortgage, you risk losing the property if you fail to keep up with scheduled repayments.

Choosing a commercial mortgage FAQs

Is it best to use a broker to find a commercial mortgage?

Can I get a commercial mortgage if I have bad credit?

What legal fees are involved with taking out a commercial mortgage?

Can I use a commercial mortgage to buy an investment property?