Commercial Mortgage
A commercial mortgage can help you buy, refinance, or raise funds against property used for business or investment purposes. This may include an office, shop, warehouse, industrial unit, mixed-use building, care premises, clinic, restaurant, or commercial investment property. Commercial mortgage lending is not assessed in the same way as a residential mortgage. Lenders look at the property, business income, deposit, trading history, affordability, lease position, and repayment plan. Connect Mortgages helps UK business owners, landlords, investors, and limited companies understand their commercial mortgage options.
What Is a Commercial Mortgage?
A commercial mortgage is a loan secured against property used for business or investment purposes.
It can help you:
- Buy premises for your own business
- Refinance an existing commercial mortgage
- Purchase a commercial investment property
- Raise funds against commercial property
- Buy a mixed-use property
- Move from rented premises to owned premises
- Support long-term business or property plans
The right option depends on your business, property type, deposit, income, and lender criteria.
What Can a Commercial Mortgage Be Used For?
A commercial mortgage may support several property and business needs.
You may use one to:
- Buy a property your business trades from
- Buy a commercial property to rent to another business
- Refinance an existing commercial loan
- Raise capital from a commercial property
- Move from renting to owning business premises
- Buy a semi-commercial property
- Support a long-term commercial property investment
- Fund expansion into a larger site
For short-term property funding, our Commercial Bridging Finance page explains when a bridging loan may be more suitable.
For building, conversion, or refurbishment projects, our Development Finance page may be more relevant.
DEVELOPMENT FINANCE
A short-term funding solution for property construction or major renovation projects.
COMMERCIAL MORTGAGE
BRIDGING LOAN
A short-term loan used to bridge financial gaps, typically between the purchase of a property and the sale of an existing one.
BUSINESS LOAN
A financial product designed to help businesses fund operations, expansion, or unforeseen expenses.
Mortgage Advice..
Thinking of getting a mortgage? Our experienced team of skilled mortgage advisers are here to offer the essential guidance you require. Relying on our comprehensive understanding of the mortgage market, we’ll ensure you secure the perfect mortgage to suit your specific situation.
FAQs: Commercial Mortgage
Most frequent questions and answers about commercial mortgage
Yes, mortgage interest on commercial property is tax-deductible. This deduction can provide significant savings against residential buy-to-let properties.
Obtaining a commercial mortgage can be challenging, as criteria for approval are often stringent. However, with good credit and a clear business plan, it is possible to secure funding from lenders.
No, residential mortgages are not generally accepted for commercial properties. Businesses must obtain a commercial mortgage to purchase or refinance the property. Some lenders may consider properties that are your home but that you also run a business from. This is usually subject to your home being a larger part of the property’s usage.
The amount of deposit required for a commercial mortgage will vary based on the lender, property type, and other factors. Generally, a minimum deposit of 30% will be needed to secure a loan.
Generally, commercial mortgages are more expensive than residential mortgages due to the higher risk associated with business properties. However, this increased cost can be offset by tax deductions and other financial benefits.
Many commercial mortgages are arranged in the name of a limited company, and these are not regulated. commercial mortgages helped in a personal name are subject to some regulations set by the Financial Conduct Authority. The lender must also meet certain criteria and provide accurate product information before agreeing to lend.
What next?
We will come back to you quickly to let you know how we can help. If you would like to speak to us immediately, call us on 01708 676 111.
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Liz Syms is the CEO and Founder of Connect Mortgages and Connect for Intermediaries, a leading firm specialising in property investment finance. With more than 25 years of experience in the mortgage and financial services industry, Liz has helped thousands of clients secure both residential homes and investment properties.
Renowned for her expertise and commitment to excellence, Liz is passionate about delivering tailored, high-quality advice on mortgages and protection. Her leadership has positioned her as a trusted figure in the sector, and under her guidance, Connect Mortgages has expanded to a national team of over 300 advisers.
Driven by a vision to make Connect Mortgages one of the UK’s most successful mortgage networks, Liz continues to champion professional standards and client-focused solutions across the industry.
About the Author
Liz Syms is the CEO and Founder of Connect Mortgages, a specialist in finance for property investment. With over 25 years of experience in mortgages and financial services, Liz has helped countless people get their dream homes and investment properties. She is passionate about giving her clients the best advice possible when it comes to financial decisions relating to mortgages and protection and is dedicated to providing the highest quality of service. With her wealth of knowledge in the industry, Liz is a respected leader in mortgages and financial services and has grown her team to over 300 advisers nationally. She strives to make Connect Mortgages one of the most successful companies in its field.