Commercial Mortgage loans

In hotel mortgages, a rigorous valuation appraisal of the hotel property ensures that both the borrower and lender have a clear understanding of the asset’s value, income potential, and associated risks. We arrange commercial mortgages for the hospitality industry, with a strong focus on helping businesses secure the right funding to purchase, refinance, or renovate hotel properties. 

Our hotel mortgage solutions are tailored to meet the specific needs of the hospitality sector, offering loan terms of up to 30 years to align with the industry’s long-term financial cycles. Interest rates on a commercial mortgage for hotel purchase are structured to reflect the unique risks and opportunities within the hotel market. 

To qualify, applicants must provide a Personal Guarantee (PG), backed by solid credit history and substantial equity. The underwriting process for a hotel commercial mortgage involves detailed financial analysis, including business plans, tax returns, and cash flow projections, all geared toward demonstrating the ability to service the loan over time.

Commercial Mortgage Valuations and LTV

A rigorous valuation appraisal of the hotel property ensures that the value is sufficient to cover the loan amount at the desired Loan to Value (LTV) ratio, which can range from 70% to 75% based on the investment’s commercial valuation. Our commercial mortgage services are designed to support a variety of business entities, including sole traders, partnerships, limited companies, and charities, with varying lender requirements.

Our expertise extends beyond typical hotels to include Guesthouses and Aparthotels, which might operate with fewer staff yet still generate substantial revenue from short-term accommodations. For entrepreneurs new to the hospitality sector or seasoned investors expanding their portfolio, our relationship with commercial mortgage lenders allows us to facilitate access to the market without the necessity for prior industry experience. Contact us at Mortgage Lane to discuss your options for a commercial mortgage for a hotel and discover tailored solutions that align with your strategic financial objectives.

Commercial AIRBNB Mortgages

For those interested in commercial Airbnb properties, mortgages are available with loan-to-value ratios (LTV) of up to 75%. These properties often fall under commercial use classes, such as C1, which typically covers hotels and hostels but can also apply to certain types of short-term rental accommodations like Airbnb. This classification enables property owners to operate within the commercial sector, offering flexibility and potential tax advantages compared to residential classifications.

For investors looking into properties with specialist amenities such as pools and spa facilities, securing commercial mortgages becomes a practical option. Such features often categorise properties within commercial use classes like C1 or Class 7, which is typically associated with hotels and similar accommodations that may include short-term rental setups like Airbnb.

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Farm commercial mortgages are a specialist category of commercial mortgage designed specifically to support the acquisition and re-mortgage of farmland, agricultural buildings, and associated farming assets. These mortgages are typically offered by building societies, high street banks, and select private lenders who are familiar with the agricultural sector’s unique needs. Farm mortgages are notable for their flexibility, often providing longer loan terms, higher loan-to-value ratios (up to 75% LTV), and lower interest rates compared to more conventional commercial mortgages. They may also come with added tax benefits, such as potential relief on capital gains tax, which can provide significant financial advantages to farmers.

Potential borrowers should consult with local lenders to determine the availability and their eligibility for a farm mortgage, as these products are not available in every area. Lenders in this field generally require a detailed understanding of the local demographic and may necessitate that borrowers have specific farming experience to qualify for the most competitive financing options. This requirement ensures that borrowers are capable of effectively managing the financed property.

Commercial mortgage lenders in the agricultural financially offer relaxed criteria concerning the amount of acreage, which is beneficial for farm owners with extensive land holdings. Lending decisions also take into account any agricultural ties that might influence the property and the applicant’s suitability. By providing tailored commercial mortgages for farms, lenders cater to the distinct financial and operational needs of the agricultural community, facilitating the growth and sustainability of farming enterprises. We can also assist with a commercial mortgage for solar farm and land, these properties will be accessed on their profits against leases or finance accounts.

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We’re experts in the equestrian sector, offering tailored financial solutions through equestrian mortgages and commercial mortgages designed for a wide range of horse-related ventures. Whether you’re purchasing land, acquiring properties with equestrian use, or launching a land-based business, our experienced commercial mortgage loan broker team is here to support you at every step.

Our in-depth knowledge spans across all types of equestrian establishments, from livery yards and competition centres to more specialist facilities like polo clubs, racing stables, and training centres. We also help clients looking to develop cross-country courses, open riding schools, or start breeding studs, offering access to commercial mortgage solutions that are built around the unique requirements of the equestrian world.

Beyond new acquisitions, we also support clients with refinancing, debt consolidation, buy-outs during partnership changes, or expanding and upgrading their facilities. Whether you’re building a residential unit on-site, need funding for infrastructure improvements, or require bridging finance, we provide the expertise to navigate every phase of your equestrian venture with confidence.

Affordability & Lending Potential

Securing the best possible commercial mortgages rates often relies on the strength of your financials. Lenders typically request 1 to 3 years of business accounts, using tools such as an EBITDA calculator to assess loan affordability. In some cases, you could borrow up to 5.5 times EBITDA, depending on the lender and the stability of your business. Having strong, well-documented accounts, whether for your existing business or one you’re looking to acquire, can dramatically increase your options when comparing deals.

If you’re ready to compare commercial mortgages tailored for equestrian use, Mortgage Lane is your trusted commercial mortgage loan broker. We’ll guide you through the application process, source competitive rates, and structure your funding to help you maximise long-term growth in this specialist sector.

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Securing a mortgage for a restaurant involves understanding specific financial products designed to accommodate the unique needs of the food service industry. Restaurant mortgages are specialist commercial mortgage loans that provide the necessary capital for purchasing, renovating, or refinancing restaurant properties. These mortgages can cover up to 75% loan-to-value (LTV), giving operators significant leverage to develop their business without needing to fully deplete their cash reserves. 

Up to 75% LTV 

Restaurant mortgages offer a high degree of leverage, allowing business owners to finance a substantial portion of the property’s value. This level of financing is particularly beneficial for operators looking to expand or enter new markets without tying up all their capital into property. 

EBITDA-Based Lending 

One of the distinctive aspects of restaurant mortgages is the reliance on Earnings Before Interest, Taxes, Depreciation, and Amortisation.(EBITDA) for assessing loan eligibility and amount. This metric provides lenders with a clearer view of the operating performance and cash flow of a restaurant by excluding rent or lease expenses, which can vary widely and affect profitability. Lending based on EBITDA allows for a more accurate assessment of a restaurant’s financial health and its ability to service debt. 

Considerations for Securing a Restaurant Mortgage 

• Business Plan: When applying for a restaurant mortgage, having a robust business plan is crucial. This should detail the concept, market analysis, competitive landscape, marketing strategies, and financial projections. A well-thought-out plan can significantly enhance credibility with lenders. 

• Financial History and Projections: Operators must present detailed financial statements and projections. Lenders will look at historical revenue streams, cost management, profit margins, and future financial forecasts. These figures should ideally demonstrate stability and growth potential. 

• Experience in the Industry: Experience is highly valued in the restaurant business. Operators with a proven track record of successfully managing culinary establishments stand a better chance of securing favorable mortgage terms. 

• Location and Demographics: The success of a restaurant often hinges on its location. Lenders will consider the demographic and economic characteristics of the location to assess potential risks and opportunities associated with the mortgage. 

Investing in a restaurant with a commercial mortgage not only facilitates the acquisition of property but also provides the capital needed for renovations or upgrades essential for staying competitive in a fast-paced industry. Moreover, the ability to finance through EBITDAR lending offers a realistic and practical financial framework for operators, reflecting the true earnings potential of the business. 

Restaurant mortgages are an invaluable resource for operators seeking to capitalise on new opportunities or enhance their existing establishments without overextending financially. These specialist commercial loans are designed to support the ambitions and operational needs of the restaurant sector, ensuring that culinary entrepreneurs can continue to thrive and expand their reach. 

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A commercial mortgage for office properties offers a strategic financial solution for both business owners and property investors looking to capitalise on the value of office real estate. Whether you’re acquiring a new premises, refinancing an existing property, or funding the development of office space, a well-structured mortgage provides the leverage needed to support long-term growth. These loans typically offer loan-to-value (LTV) ratios between 60% and 75%, allowing borrowers to fund a substantial portion of the purchase while preserving working capital for other business needs. The exact LTV available will depend on several factors, including the borrower’s financial profile, the property’s location, and its ability to generate stable income.

A commercial business mortgage for office property is tailored to reflect the unique aspects of the commercial real estate market. Lenders will consider the property’s rental yield, the security and length of any existing leases, and the earning potential of the asset. Understanding current commercial mortgage rates is also vital when structuring an investment, as interest costs will directly affect profitability over time. For investors, a commercial investment mortgage offers the flexibility to grow a portfolio while benefiting from steady rental income and potential capital appreciation.

When assessing an application, lenders focus on key elements such as the location of the office property and local market demand. Offices located in well-connected areas or established business districts are generally seen as lower risk and may benefit from more competitive mortgage terms. Additionally, tenant strength and lease structure are crucial. Properties let to reputable, long-term tenants on secure leases are typically more attractive to lenders, as they offer predictable income and lower vacancy risk. For business owners, occupying their own premises with the help of a commercial mortgage can often be more cost-effective than renting, especially over the long term.

It’s also important to consider broader market trends, such as the rise of remote and hybrid working models, which are changing the way office space is used. Flexible layouts, co-working designs, and mixed-use adaptability can all increase the long-term appeal of a property. Investors using a commercial investment mortgage may benefit from targeting properties that can evolve with changing demand and workplace expectations.

Financing an office purchase through a commercial mortgage business solution offers several key advantages. Strategically located office properties can generate strong rental yields and long-term capital growth. They also provide an opportunity for portfolio diversification, helping spread risk when combined with other asset types such as industrial or retail units. By using a commercial business mortgage, investors and business owners alike can unlock the value of property without tying up excessive capital, allowing for smarter and more scalable growth.

To make the most of these opportunities, it’s essential to work with an experienced commercial mortgage broker who can help you access the most competitive terms across the market. As a whole-of-market broker, we can help you understand lender criteria, navigate commercial mortgage rates, and structure your loan to support your short and long-term goals. Whether you’re buying office premises for your own company or expanding an investment portfolio, a well-planned commercial mortgage can be the key to unlocking sustainable growth and financial security.

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Healthcare business mortgages are uniquely designed to meet the specific financial needs of the healthcare sector, including properties such as dental practices, medical clinics, private hospitals, care homes, and specialist treatment centres. These mortgages recognise the regulated, service-driven nature of the industry and offer highly tailored solutions to healthcare professionals and investors. In some cases, lenders may offer up to 100% loan-to-value (LTV), providing a rare opportunity to acquire or expand property holdings with little to no upfront capital required.

This level of financing is typically available under certain conditions, most commonly where the borrower can provide additional security or demonstrate strong financial performance and experience in the healthcare sector. Lenders familiar with this industry understand the nuances involved, such as the value of long-term patient contracts, the stability of cash flow, and the impact of regulatory requirements on day-to-day operations.

One of the key advantages of healthcare business mortgages is their ability to preserve capital, allowing borrowers to direct funds toward equipment, staffing, or operational improvements rather than tying up cash in a property deposit. These tailored loans are structured to reflect the relatively predictable revenue streams and high demand associated with healthcare services, making them particularly attractive for both operators and lenders.

When applying for a healthcare business mortgage, lenders will look closely at several critical factors. Regulatory compliance is a major consideration; the property must meet all relevant health, safety, and care quality standards. Any plans to refurbish or upgrade a facility will also be reviewed in the context of these regulations. Cash flow and overall financial health of the business play a central role too, particularly when seeking higher LTV options. Lenders will expect clear evidence that the business can sustain ongoing mortgage repayments.

Location and accessibility also influence lending decisions. Properties situated in areas with strong demand for healthcare services, such as urban centres, retirement hubs, or underserved regions—are seen as lower-risk investments and can attract more favourable terms.

Investing in healthcare property through a specialist mortgage offers several long-term benefits. The ability to access up to 100% LTV enables operators to scale quickly, opening new sites or upgrading existing facilities without needing to raise large amounts of capital. This approach can significantly enhance capital efficiency and allow for more responsive, strategic growth.

Furthermore, the healthcare sector benefits from inherently strong and stable demand, which translates into reliable income and long-term investment security. As populations age and healthcare needs rise, these properties are likely to remain resilient and well-positioned for consistent returns.

A healthcare business mortgages provide a highly effective financial tool for those looking to invest in or expand healthcare services. With specialist lenders offering flexible structures and high LTV potential, these mortgages support not just property acquisition, but the broader goal of sustainable, long-term growth within one of the most essential sectors of the economy.

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Obtaining a mortgage for a storage unit facility can be an excellent investment opportunity, offering up to 75% loan-to-value (LTV) ratios. This level of financing enables investors and business owners to leverage significant capital for acquiring or expanding storage unit operations. However, the terms and availability of more favourable mortgage products often depend on the applicant’s industry experience.

Key Features of Mortgages for Storage Units

• Up to 75% LTV: This LTV ratio allows borrowers to finance a substantial portion of the property’s value, minimizing the initial cash outlay required to purchase or expand a storage facility. It provides substantial leverage, making it easier to scale operations or enter the market.

• Experience Considerations: While it is possible to obtain a mortgage for storage units without prior experience in the industry, applicants with a proven track record typically access the best financing options. Lenders view experience as an indicator of the borrower’s ability to successfully manage and operate a storage facility, which can significantly influence the terms of the loan.

The Impact of Experience on Mortgage Terms

• Better Products for Experienced Operators: Borrowers with at least three years of experience in managing storage units generally qualify for the most attractive mortgage products. This experience demonstrates to lenders that the borrower has a solid understanding of the market and the operational challenges associated with running a storage facility.

• Options for New Entrants: For those new to the storage unit business, lenders might still offer financing, but possibly at higher interest rates or with stricter terms compared to those available to experienced operators. New entrants may need to provide additional assurances, such as a stronger business plan or additional collateral.

Strategies for Securing a Storage Unit Mortgage

• Business Plan: Both experienced and new operators should prepare a comprehensive business plan that details the viability of the storage unit facility. This plan should include market analysis, financial projections, and strategies for occupancy and revenue growth.

• Financial Documentation: Demonstrating strong financial health through detailed records and projections can help mitigate the lack of direct experience. This includes providing profit and loss statements, cash flow analysis, and balance sheets.

• Industry Research: Understanding industry trends, customer demand, and local market dynamics can strengthen a loan application. This knowledge compensates for a lack of experience and shows lenders a commitment to success.

• Consulting with Experts: New entrants might benefit from consulting with industry experts or hiring experienced managers, which can bolster a lender’s confidence in the project’s success.

• Lease Units Formally: Borrowers should make sure each unit has lease agreements to formalise the rental evidence.

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We specialise in providing commercial mortgages tailored for the care sector, ensuring operators have the financial support needed to acquire, refinance, or upgrade care home facilities. A commercial mortgage for a care home is crucial for businesses looking to expand or enhance their offerings, with loan terms that can extend up to 30 years. 

For care homes, which typically serve vulnerable populations, commercial mortgage lenders pay close attention to the operational stability and compliance of the facility. Borrowers are often required to submit CQC or CIW reports to demonstrate effective management and high care standards. These reports are vital as they mitigate the lender’s risk concerns associated with the vulnerability of residents and the potential reputational damage that could arise from loan receivership issues. 

Lenders also evaluate the experience of the operators, which is crucial for securing competitive tier 1 rates. 

Interest rates and LTV 

In terms of financial requirements, the interest rates on a commercial mortgage for a care home are generally higher than those for residential mortgages, reflecting the specialist nature and higher risk of the business. Operators seeking these mortgages must typically provide a personal guarantee (PG) and demonstrate a solid credit history and substantial equity. Lenders will require thorough financial documentation, including business plans, tax returns, and cash flow projections, to assess the borrower’s capacity to repay the loan. A valuation appraisal is also necessary to confirm that the property’s value adequately covers the loan amount, with LTV ratios for care homes reaching up to 80%, allowing more leverage for operators in this sector. 

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A pub mortgage is a specialist form of commercial mortgage designed specifically for business owners or investors aiming to purchase or refinance a public house. These mortgages are secured against the pub itself and can be used to support the purchase, refurbishment, or expansion of the establishment. Due to the unique nature of the business and the potential impact on the lender’s reputation in cases of repossession, interest rates for commercial mortgages for pubs are generally higher, reflecting the elevated lending risk. Lenders tend to offer more competitive rates for well-established pubs compared to those that are newly constructed or in need of extensive refurbishment. The terms of the mortgage, including the interest rate, may also be influenced by various factors such as the loan size, the borrower’s credit history, the location of the pub, and its operating hours. Pub mortgages are available with loan-to-value (LTV) ratios ranging from 65% to 75%, and borrowers can choose between interest-only or capital repayment options depending on their financial strategy. Freehold pub commercial mortgages options are widely available to borrowers with or without experience, applicants buying a trading pub will be able to use EBITDA lending and will have more options to choose from, but we can also get a commercial mortgage for a pub that is not trading.

Due to the additional risks associated with financing pubs, the range of available mortgage products can be somewhat restricted. However, Mortgage Lane maintains relationships with lenders who offer more relaxed eligibility criteria for qualified borrowers, including lower minimum loan sizes and no strict requirements for prior experience or detailed trading accounts Please note, this content is not intended as legal or tax advice. If you are planning to pursue any activities discussed here, we recommend consulting with a qualified professional to ensure that your decisions are well-informed and appropriate for your situation.

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We specialise in facilitating Guest House mortgages, catering to both first-time owners and seasoned operators. Guest houses, typically classified as C1 in England and Wales or Class 7 Use in Scotland, fall under commercial property categories. When underwriting these properties, lenders focus on evaluating the operating business which encompasses not only the physical assets but also the business’s profitability.

For running businesses looking for a commercial mortgage, having up-to-date accounts is crucial as it enables the possibility of obtaining a Market Value 1 (MV1) valuation. This type of valuation assesses the guest house both as a business entity and in terms of its physical ‘bricks and mortar’ value. Profitable guest houses often pursue MV1 valuations to maximise their property value, thereby increasing the potential loan amount they can secure with a commercial guest house mortgage lender.

Investment valuations are particularly advantageous for owner-operators, who may be eligible for lending based on multiples of EBITDA (Earnings before interest, tax, depreciation, amortisation) or NET profit, typically up to 5.5 times. Additionally, lenders may offer loans with loan-to-value ratios (LTV) up to 75%, providing substantial financial leverage to enhance or expand guest house operations. This approach not only supports the acquisition and growth of guest houses but also aligns financial support with the business’s proven success and earning potential.

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Investment retail mortgages are purpose-built to support investors aiming to purchase or refinance commercial properties within the dynamic and competitive retail sector, particularly in high street locations. These specialised mortgage products typically offer up to 75% loan-to-value (LTV), allowing investors to finance a significant portion of the property’s market value. This level of leverage makes it possible to secure well-positioned retail units or expand an existing portfolio without committing excessive upfront capital, making prime opportunities more accessible and scalable.

A key benefit of this 75% LTV offering is that it empowers investors to grow their holdings while maintaining liquidity for other strategic investments or operational needs. Whether acquiring standalone shops, mixed-use units, or blocks of high street retail outlets, this type of financing allows investors to engage with retail real estate more confidently and competitively.

One of the most attractive aspects of high street retail mortgages is their adaptability to an evolving marketplace. While the retail sector has faced significant shifts particularly in tenant turnover and shopping behaviours—these changes also create room for opportunity. Lenders understand that despite the risks associated with shorter leases or weaker covenants, a responsive and well-managed high street asset can deliver excellent returns. Strategic repositioning, creative leasing, and diversified tenant mixes are just a few ways investors can revitalise underperforming properties.

The strength of a retail investment often hinges on the tenant mix and lease structure. High streets tend to attract a broad range of occupiers—from independent boutiques and cafes to national chains and essential service providers. Lenders will assess lease lengths, tenant quality, and rental income to ensure the investment is viable over the long term. Properties with a stable and diverse tenant base typically receive more favourable terms, as they’re considered less vulnerable to vacancy-related income dips.

Location remains a central factor in determining success. Retail properties in areas with high footfall, strong local economies, and good transport links are viewed as more resilient and capable of delivering consistent returns. Lenders give particular attention to these dynamics when evaluating applications, as they directly affect the property’s income-generating potential.

Investing through an investment retail mortgage gives property investors the ability to capitalise on high street opportunities while maintaining flexibility. With the backing of up to 75% LTV financing, investors can acquire, upgrade, or diversify their retail holdings without overextending their capital. Despite potential challenges, such as changing consumer habits or tenant turnover, well-located and well-managed retail investments continue to offer attractive long-term returns.

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Commercial mortgages for warehouse properties are designed to meet the unique secured funding demands of investors and business owners in the industrial real estate sector. These mortgages typically offer loan-to-value (LTV) ratios of up to 75%, providing significant leverage for those looking to purchase, refinance, or develop warehouse facilities. Navigating the nuances of commercial mortgage rates is crucial for maximising investment potential in this robust market segment. 

Key Features of Commercial Mortgages for Warehouse Properties 

• LTV Ranges from 60% to 75%: This range allows for considerable financing of the warehouse property’s value, facilitating the acquisition or enhancement of facilities with less initial capital outlay. The specific LTV granted can depend on various factors, including the borrower’s creditworthiness, the property’s strategic location, and its potential for generating income. 

• Tailored Financing Solutions: Commercial mortgages for warehouse properties are crafted to support the operational and financial requirements of the industrial sector. Warehouse Mortgage Lenders who offer these mortgages typically consider the property’s utility, the logistics of its location, and the prevailing commercial mortgage rates to create financing solutions that align with the borrower’s investment goals. 

Considerations for Securing Commercial Mortgages for Warehouse Properties 

• Strategic Location and Functional Utility: The location of a warehouse greatly influences its value and appeal to lenders. Properties situated near transportation hubs like ports, railways, and major highways are particularly valuable due to their logistical advantages. Additionally, the functional utility of the warehouse, such as its ceiling height, docking facilities, and floor strength, plays a critical role in its suitability for various industrial uses. 

• Tenant Quality and Lease Terms: The quality of tenants and the terms of their leases are vital components in securing a commercial mortgage. Warehouses leased to stable, long-term tenants provide a secure income stream that is attractive to lenders. 

• Market Trends and Economic Factors: Keeping an eye on market trends and economic factors that impact the industrial sector, such as changes in manufacturing output and e-commerce growth, is essential. These trends can affect warehouse demand and make certain properties more lucrative investments. 

Advantages of Investing with Commercial Mortgages 

Investing in warehouse properties using commercial mortgages enables investors to leverage their capital efficiently while aiming for substantial returns. With favourable commercial mortgage rates, these investments can be particularly lucrative: 

• Potential for High Returns: Warehouses in prime locations can yield significant rental income and appreciate in value, especially in areas experiencing economic growth or increased demand from sectors like e-commerce. 

• Portfolio Diversification: Adding warehouse properties to a real estate investment portfolio can diversify risk and provide stable returns, especially in contrast to more volatile real estate segments. 

Securing a commercial mortgage for warehouse properties involves careful evaluation of commercial mortgage rates, property specifics, tenant stability, and broader market trends. By effectively managing these elements, investors can capitalise on the opportunities available in the industrial real estate market, optimising their investments for maximum growth and returns. 

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When securing industrial mortgages, lenders heavily rely on a business’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) to assess their loan viability. This financial indicator is crucial for evaluating the operational profitability of a company, particularly in the industrial sector where the scale of operations and capital investments are significant. Understanding how EBITDA impacts commercial mortgage rates is essential for operators seeking financing for facilities such as warehouses, factories, or distribution centres.

EBITDA and Industrial Mortgage Lending

EBITDA-based lending provides a clear picture of a company’s ability to generate operational cash flow, independent of its financial structure, tax environment, and capital expenditures. This metric is a key determinant in how lenders evaluate a company’s capacity to service debt, especially when it comes to industrial mortgages.

How Lenders Use EBITDA in Assessing Commercial Mortgage Rates for Industrial Properties

Debt-Service Coverage Ratio (DSCR): This ratio is calculated by dividing a company’s EBITDA by its debt obligations for the year. For industrial mortgages, a higher DSCR indicates that a company generates enough operational income to comfortably cover its debt payments, which can influence the lender to offer lower commercial mortgage rates.

Loan to Value (LTV) Ratio: While EBITDA itself doesn’t directly determine LTV ratios, a strong EBITDA can enhance a lender’s confidence in a business’s financial stability. This confidence can translate into a willingness to offer a higher LTV ratio, underpinning more substantial financing opportunities.

Interest Rate Negotiation: Businesses with robust EBITDA figures are generally considered lower-risk, which can lead to more favourable commercial mortgage rates. In the industrial sector, where operations and revenue generation can be more volatile, demonstrating strong and consistent EBITDA is particularly persuasive.

Key Considerations for Operators Seeking Industrial Mortgages

Operators looking to secure an industrial mortgage should consider several strategic steps to leverage their EBITDA effectively:

Transparent Financial Documentation: Accurate and detailed financial records that clearly demonstrate EBITDA and other key financial metrics are vital. This transparency helps lenders quickly assess financial health and operational efficiency.

Comprehensive Business Plan: Articulating how the industrial operations will sustain or improve EBITDA in a business plan can reassure lenders of the business’s future financial stability and its capability to manage new debt.

Comparison to Industry Norms: Knowing where your EBITDA stands in relation to industry averages can be a strong negotiation point. Outperforming industry EBITDA averages can position a business favourably during commercial mortgage negotiations.

In conclusion, EBITDA is an indispensable financial measure for any industrial business seeking to secure commercial mortgages. It not only affects the calculation of debt service coverage ratios but also plays a crucial role in determining the terms and rates of the loan. For industrial businesses, maintaining a robust EBITDA is key not just for securing favourable mortgage terms but also for ensuring long-term operational success and financial stability.

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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. Unlike residential mortgages, where personal income and credit history are the main focus, commercial lenders often require proof of business experience and a solid track record of profitability, which can pose an additional hurdle for new entrants to the market, experience not being vital but usually a lot more commercial mortgage options are available to borrowers with experience. Having a good credit history and strong financial accounts are key factors that can significantly ease the process of securing a commercial mortgage. These elements are crucial because they provide lenders with confidence in the borrower’s ability to manage and repay the loan.

Higher interest rates

Interest rates for commercial mortgages are generally higher than those for residential mortgages, reflecting the increased risk. The terms can also be less favourable, often including shorter amortisation periods and balloon payments after a fixed term, requiring careful financial planning and management.

Affordability based on profits

Another key difference in commercial lending for owner occupiers is that loan affordability often hinges on the business’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA). This metric helps lenders evaluate the business’s ability to generate cash flow and, consequently, its capacity to service debt. However, relying on EBITDA can also present challenges, particularly if the business’s cash flow is volatile or subject to seasonal fluctuations. This can make it difficult to demonstrate consistent profitability and might require more sophisticated financial planning and forecasting to satisfy lender requirements.

We are committed to assisting borrowers across all commercial sectors, whether they come with extensive experience or are just entering the market for the first time. Our expertise in commercial mortgage lending allows us to provide tailored support and guidance to each client, ensuring that they receive the financing solutions best suited to their unique needs and circumstances.

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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. 

Interest rates on commercial mortgages tend to be higher, and borrowers can expect to pay arrangement fees—usually between 1% and 2% of the loan amount—as well as valuation and legal fees, which are often more complex and costly than those in residential deals. Additionally, commercial mortgages are usually offered on variable or short-term fixed rates, rather than the longer-term fixed rates common in residential lending. This can lead to less predictability in repayments. 

That said, commercial mortgages can still be a cost-effective option when considered in the context of business or investment returns. For example, if you’re purchasing a property that generates rental income or supports a profitable business, the income could more than cover the cost of the loan. Certain sectors, such as healthcare, may also attract more competitive rates due to their lower risk profile. 

Ultimately, the cost of a commercial mortgage depends on several factors, including the size of your deposit, the type of property, your financial background, and whether the property is owner-occupied or investment based. While not usually cheaper in pure interest terms, a commercial mortgage might still offer strong value depending on your specific circumstances and financial goals. 

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Yes, you can get a bank loan to buy a commercial property. This type of loan is typically referred to as a commercial mortgage. When considering an application for a commercial mortgage, lenders delve into a detailed underwrite to ensure the viability and security of the loan. Commercial mortgage underwriting usually includes reviewing the borrower’s credit history, past business performance and details in the lease or the accounts. Lenders look for a solid track record of credit management and financial stability. Relevant experience in managing or owning commercial properties or businesses is not essential but can assist borrowers to widen their product options. Lenders use this information to assess the borrower’s ability to handle the complexities of a commercial property, including management and maintenance responsibilities.

Subject to valuation

The physical condition and location of the property are meticulously assessed by commercial mortgage lenders. Properties in prime locations with good structural integrity are more appealing. The property’s ability to attract and retain tenants plays a significant role in the evaluation process. For income-producing properties, lenders examine current lease agreements, occupancy rates, and the financial health of existing tenants. The property’s income history and potential cash flow are critical for determining its ability to cover the mortgage payments and operating expenses. Lenders calculate the DSCR to understand how much net operating income the property generates relative to its debt obligations. A higher DSCR indicates more substantial cash flows and a lower risk for the lender.

Commercial mortgage lenders use these comprehensive assessments to tailor the mortgage terms, deciding on aspects like the loan-to-value ratio, interest rates, repayment schedule, and other loan conditions. Engaging with a knowledgeable broker or advisor can help navigate the complexities of securing a commercial mortgage tailored to specific needs and circumstances.

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The minimum commercial mortgage amount is usually £25,001. This is because loans below £25,000 are typically regulated under consumer credit rules, while loans of £25,001 and above fall under commercial lending regulations, which are more flexible and tailored to business borrowing. Most high street and specialist lenders set this as their entry point for commercial mortgages.

While borrowing at the minimum threshold is possible, it’s worth noting that more options become available to borrowers looking to borrow larger amounts. Lenders tend to offer more competitive rates, a wider choice of products, and greater flexibility on terms and repayment structures when the loan size increases. This is because larger loans are often associated with stronger businesses or more valuable assets, which can reduce the lender’s risk.

If you’re seeking to borrow less than £25,000, alternatives such as business loans, secured loans, or a bridging loan might be more suitable, depending on the nature of the property and your plans for it.

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A commercial mortgage is a type of loan specifically designed for purchasing or refinancing property that is used for business purposes. Unlike residential mortgages, which are for homes people live in, commercial mortgages are used for properties such as offices, retail units, warehouses, factories, or hospitality venues like hotels and restaurants. These loans are typically secured against the property being purchased, meaning the lender can take possession of the property if repayments aren’t made.

Commercial mortgages are commonly taken out by businesses, whether they’re limited companies, partnerships, or sole traders. The loan amounts tend to be much larger than those of residential mortgages, often starting from around £50,000 and going well into the millions depending on the size and value of the property. Loan terms usually range from 3 to 25 years, and interest rates are often higher than residential mortgages due to the increased risk.

There are two main types of commercial mortgages: owner-occupied and commercial investment mortgages. An owner-occupied mortgage is when a business buys premises to operate from, such as a shop, office, or warehouse. A commercial investment mortgage is used when someone buys a property to rent out to other businesses, such as a landlord leasing out a retail unit.

For example, if you run a shop and want to purchase the building your shop operates in, you would apply for a commercial mortgage to help fund the purchase. The mortgage would be secured against the stores premises, and your business would be responsible for making the repayments.

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Getting a commercial mortgage involves a more detailed and tailored process than a residential one, but it can be straightforward with the right preparation and support. The first step is to clearly define your needs—whether you’re buying a property for your own business (owner-occupied) or as an investment to rent out. Lenders will want to ensure the loan is affordable, so it’s important to assess your business income or projected rental income against expected mortgage repayments.

Next, you’ll need to gather the necessary documentation. Most lenders will ask for 2 to 3 years of business accounts, recent bank statements, credit reports, and full details about the property you’re purchasing. If the property is already let, you’ll also need to provide a copy of the lease agreement and information about the tenant. Proof of deposit is also essential, as commercial mortgages usually require a 25% to 40% deposit.

One of the most important steps in the process is to speak to a commercial mortgage broker. Commercial lending is far less standardised than residential, and brokers have access to specialist lenders and off-market deals that you might not find on your own. A good broker can assess your circumstances, recommend suitable lenders, and guide you through the application process from start to finish—saving you time and potentially a significant amount of money.

Once your broker or lender is happy with the initial details, you’ll usually receive an Agreement in Principle, which outlines how much the lender is willing to offer, subject to further checks. The lender will then arrange a valuation of the property and carry out detailed underwriting, including assessing your finances, business performance, and any risks associated with the property or lease.

If everything stacks up, the lender will issue a formal mortgage offer. Your solicitor will then begin the legal work, including reviewing the title, handling property searches, and finalising mortgage documentation. Once everything is approved and signed off, the funds will be released, and your mortgage will complete.

In total, the commercial mortgage process typically takes 6 to 12 weeks, depending on the complexity of the deal. To give yourself the best chance of success and secure the most competitive rates, it’s strongly recommended to work with an experienced commercial mortgage broker from the outset.

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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.

In general, lower-risk borrowers—such as established businesses with strong accounts or investors buying standard properties with good tenants—might be able to access deals with deposits closer to 25%. On the other hand, if the deal involves higher risk (like a new business, a specialist property, or a short lease), lenders may require a larger deposit, potentially up to 40% or more.

In some cases—particularly in the healthcare sector for professionals like doctors, dentists, and pharmacists—it may be possible to secure a commercial mortgage with as little as 0% to 10% deposit, depending on the strength of the applicant and lender appetite.

Overall, while 25% is a common minimum, it’s always a good idea to be prepared for a higher deposit, especially if your circumstances are more complex or outside mainstream criteria.

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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.

The value of a tenanted commercial property on a commercial mortgage is often based on its rental yield, the annual rental income in relation to the property’s value. When valuing investment properties, surveyors frequently use the investment method, which considers rental income, lease length, and tenant covenant strength. A blue chip tenant—such as a major retailer, bank, or national brand—adds considerable value, as they are seen as low-risk and more likely to meet their lease obligations long term.

Leases with no break clauses and long unexpired terms further increase a property’s value. A long lease without the risk of early termination gives the buyer greater income certainty, which directly enhances the asset’s appeal and market price. In contrast, vacant properties or those with short or uncertain lease terms are often valued lower due to income risk and the potential cost of finding new tenants.

In short, a commercial property let to a blue chip tenant on a long, secure lease without break clauses is typically worth significantly more than a vacant property or one with an unstable tenancy.

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

For business owners Commercial mortgage lenders will use the NET PROFIT of the security property, which is the property you are buying or remortgaging. Using the EBITDA method, the figure used may be adding in or deducting parts of your accounts that will change upon completion, such as swapping your rent against your new mortgage payment.

If you’re purchasing a property as an individual, the financial stress test applied by lenders might be more stringent compared to basic rate taxpayers. For instance, a basic rate taxpayer could be assessed at 125%, whereas a higher rate taxpayer might be evaluated at 145%. For five-year fixed mortgages, lenders often use the pay rate of the product for stress testing, say 5.89%. As an example, for a basic rate taxpayer earning £600 per month in rent, the calculation would be: £600 x 12 / 1.25 / 0.0589, resulting in a maximum loan of £97,792.

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An interest only Commercial mortgage is a mortgage, where you will only repay the interest on the principle amount borrowed. This can be useful for investors on commercial mortgages, whereby they build this into their cashflow.

Some options are capital repayment by design, therefore if you do require Interest Only it is best to let your broker know early on so they are able to better plan your options and of course manage your expectations.

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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.

There are two main types of commercial mortgages. The first is an owner-occupied commercial mortgage, where a business buys a property to operate from—for example, a retail shop or an office space. The second is a commercial investment mortgage, which is used to buy a property that will be rented out to other businesses as a source of income.

Commercial mortgages are usually larger and more complex than residential ones. Loan terms typically range from 3 to 25 years, and the deposit required is often between 25% and 40% of the property’s value. Interest rates are generally higher than residential rates because commercial lending carries more risk and is more bespoke, with lenders assessing the borrower’s business performance, the property’s value, and the income it generates.

These types of mortgages are available to a range of borrowers, including limited companies, partnerships, sole traders, and property investors. Whether you’re purchasing a building for your own company or investing in commercial property to rent out, a commercial mortgage can be a key tool for long-term business growth or income generation.

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Yes, some lenders offer a 10% overpayment facility, per annum.

This means that if your principal loan was £125,000 then you could repay £12,500 per annum as an overpayment without incurring a penalty within your fixed term.

However, it is important to note that many commercial mortgage lenders are stripping this from their product ranges, so it is always worth checking to avoid paying exit fees on amounts repaid.

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Deciding between high street and specialist lenders for a commercial mortgage? Established commercial mortgages often find better rates with High Street lenders. Yet, these lenders usually expect more experience. Conversely, specialist lenders might have more lenient experience prerequisites, and their rates have grown competitive over the years.

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A commercial mortgage in business refers to a loan taken out by a company or business owner to purchase, refinance, or develop commercial property. This could include premises such as offices, shops, warehouses, factories, or any building used for business operations. Unlike residential mortgages, which are for homes people live in, a commercial mortgage is specifically for property that is used to run or invest in a business.

There are two main types of commercial mortgages: one for owner-occupiers, where a business buys the property it trades from, and the other for commercial property investors, who purchase premises to rent out to other businesses. In both cases, the property acts as security for the loan.

For business owners, a commercial mortgage can offer several advantages. It can provide long-term stability, help avoid rising rents, and allow the business to build equity in an appreciating asset. It can also be more cost-effective than leasing over time, especially when interest rates are favourable.

Lenders assess commercial mortgage applications based on the business’s financial health, credit history, deposit size, and the value and condition of the property. The mortgage term can range from 3 to 25 years, and the amount a business can borrow is often based on its profitability or EBITDA (earnings before interest, taxes, depreciation, and amortisation).

A commercial mortgage for business is a strategic tool that allows companies to gain control over their premises, reduce long-term costs, and invest in their future through property ownership.

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Floor space %: Some lenders might have a minimum percentage that they would like to be residential, for instance, 60%. Valuation split between residential and commercial: Certain lenders might prefer a valuation split ratio of 50/50. Some commercial properties may have only one access point, presenting a more intricate lending scenario. Ideally, properties should have two entrances, but we offer lending solutions for both configurations. For those new to commercial mortgages or non-homeowners, options might be limited. The specific use of the commercial unit(s) can also influence lending options, as the commercial realm contains various sub-sectors. Not all lenders might cater to every sub-sector, such as gyms or car garages. Hence, providing comprehensive information to your broker is crucial to avoid potential declines.

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Many renowned high-street banks cater to commercial mortgages. Yet, they often uphold strict standards, mostly favouring straightforward cases. Challenger banks, albeit less renowned, stand out with their niche prowess.

Prominent commercial mortgage partners include high street names such as Barclays, Lloyds, Natwest, and Yorkshire Building Society. We also partner with esteemed commercial mortgage lenders like Allica Bank, Interbay Commercial, Recognise Bank, Shawbrook, Reliance Bank, and Redwood Bank.

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The minimum term for a commercial lease can vary depending on the lender and the type of mortgage being applied for. Generally, lenders prefer the lease length to be longer than the fixed period of the loan, which is often around 5 years. This gives the lender confidence that the rental income from the tenant will continue throughout the most crucial part of the loan term, helping to cover repayments and reduce risk.

That said, having a lease that is shorter than the fixed period is not always a deal-breaker. While some mainstream lenders might be more cautious, there are specialist lenders who are happy to work with shorter lease terms, depending on the overall strength of the application. For example, they may be more flexible if the tenant has a solid financial standing, if the property is in a desirable location with strong rental demand, or if there’s a good history of lease renewals.

We regularly work with lenders who allow for shorter leases than the fixed period, offering greater flexibility for landlords and investors. This can be particularly helpful in situations where a tenant is on a rolling lease, or where lease renewal is expected but hasn’t yet been signed. Each case is assessed individually, so it’s always worth exploring your options—even if the lease term is on the shorter side.

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A typical commercial mortgage rate in the UK ranges between 6% and 9%, but the exact rate offered can vary widely depending on the details of the borrower and the property. Unlike residential mortgages, commercial mortgage rates are usually bespoke, meaning they are tailored to each individual deal based on the level of risk involved. 

Several factors influence the interest rate. One of the biggest is the loan-to-value (LTV) ratio—generally, the lower the LTV (the bigger the deposit), the better the rate. The type of property also matters; standard commercial buildings in strong, established locations are usually seen as lower risk and attract more competitive rates. 

Lenders will also closely assess the financial strength of the borrower or business, including trading history, accounts, and credit profile. For investment properties, the strength of the tenant, known as the covenant strength, is another important consideration. A property let to a financially stable tenant on a long lease is typically viewed as lower risk, which can result in more favourable pricing. 

Certain sectors, such as healthcare, may benefit from lower commercial mortgage rates due to their perceived stability. On the other hand, borrowers with weaker credit, limited trading history, or more complex requirements might see rates in the higher range—8% to 10% or more. 

It’s also worth noting that most commercial mortgages are offered on variable or short-term fixed rates, rather than the long-term fixed options commonly available in the residential market. This can make repayments less predictable, especially in a rising interest rate environment. 

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Yes.
Some lenders who offer Commercial mortgages to first time buyers may limit the loan size to their maximum residential mortgage affordability. Although others would not reduce the loan size, it is important to understand the commercial options prior to purchasing commitments if you are not a home owner, as the majority of lenders will require ownership experience.

Of course applicants buying first on a bridge are not first time buyers when re-mortgaging.

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We arrange cost-effective Commercial mortgages for:

• Individuals
• Special Purchase Vehicles/Limited Companies
• Limited Liability Partnerships (LLP)
• Trading companies
• Charities
• On/Offshore Trusts

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It is important to note that Commercial mortgages are not covered by the Financial Services Compensation Scheme, so borrowers should ensure they are dealing with a reputable lender.

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For a commercial mortgage, a deposit of approximately 25% of the property’s total value is typically required, especially with investment commercial purchases. However, in specific owner occupied sectors like healthcare, some mortgages might offer up to 100% loan-to-value (LTV), potentially eliminating the need for a deposit. This variance primarily depends on the lender’s policies, the type of property, sector, and the borrower’s financial health. Consulting with commercial mortgage brokers can provide insights into commercial mortgage criteria requirements to see what Loan to Value (LTV) you can borrow with commercial mortgage lenders.

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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.

For standard commercial mortgages, such as buying an office, shop, or warehouse, lenders typically ask for a deposit of:

• 25% for lower-risk deals (e.g. strong business finances, good credit, established trading history)

• 30–40% if the deal is higher risk (e.g. start-ups, niche property types, poor credit)

In some cases, lenders may go lower than 25%, but only if the borrower offers additional security or has an exceptionally strong application. As mentioned earlier, certain professionals like doctors, dentists, and pharmacists may qualify for 10% or even 0% deposit options, especially for owner-occupied premises.

If you’re investing in property to rent out (i.e. a commercial investment mortgage), lenders tend to want larger deposits, often closer to 30–40%, because rental income can be less predictable.

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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. Major high street banks such as Barclays, HSBC, Lloyds Bank, and NatWest are some of the most active and well-established commercial mortgage lenders, particularly for more traditional businesses and larger loan amounts.

In addition to the high street names, a number of specialist and challenger banks like Aldermore, Shawbrook, Together, and InterBay play a significant role in the commercial lending space, especially when it comes to property investors, buy-to-let portfolios, or borrowers with complex income structures. These lenders often provide more flexible underwriting and are well-regarded for working with brokers and tailoring solutions to individual cases.

The largest lender for any given borrower really depends on factors like loan size, property type, business structure, and credit profile. That’s why speaking to a commercial mortgage broker can be useful—they can assess your situation and match you with the most suitable lender based on current market conditions.

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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.

One of the main reasons is that commercial lending is seen as higher risk. Property values in the commercial sector can be more volatile, and income is often tied to the performance of a business or the reliability of a tenant. If a business fails or a lease isn’t renewed, the property could be left vacant, which poses a greater risk to lenders compared to residential properties, where demand is usually more stable.

Another important factor is the individual assessment process. Commercial mortgage rates aren’t usually off the shelf, they’re based on bespoke underwriting. Lenders look closely at the business’s financial accounts, and things like the loan-to-EBITDA ratio (earnings before interest, tax, depreciation, and amortisation) can heavily influence pricing. A high loan-to-EBITDA ratio signals greater risk and may result in a higher interest rate or even a rejection.

For investment properties, the strength of the tenant—known as the covenant strength—also plays a major role. A lease with a strong, well-known tenant (like a supermarket or bank) is seen as lower risk and may attract a better rate. On the other hand, a weaker or unknown tenant may lead to higher rates, as lenders are less confident in the reliability of rental income.

Because of these risk factors and the custom nature of each loan, commercial mortgages tend to come with higher interest rates and fees than both residential and buy-to-let mortgages. Each deal is unique, and lenders price according to the risk profile of the property, the borrower, and the income being relied on to service the loan.

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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. 

However, there are some exceptions where 100% commercial funding may be available, usually when the borrower can offer additional security. This might include another property with substantial equity, a very strong business track record, or a low-risk property with reliable, long-term tenants in place. In some cases, a lender may consider 100% funding if the borrower is able to provide a personal guarantee or other collateral that reduces the risk. 

One notable exception is in the healthcare sector, where 100% commercial mortgages are more commonly available, particularly for dentists, doctors, opticians, and pharmacists. This is because healthcare businesses are considered low risk, with steady demand and reliable income, making them more attractive to lenders. 

Outside of healthcare, 100% commercial mortgages remain uncommon and typically require creative structuring or specialist lender involvement. A commercial mortgage broker can help assess whether it’s possible based on your specific situation. 

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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.

One of the biggest advantages is the potential for stable, long-term rental income. Commercial leases typically last 5 to 15 years or more, often with built-in rent reviews or annual increases tied to inflation, providing a predictable income stream. Many commercial leases are full repairing and insuring (FRI), meaning the tenant is responsible for maintenance, repairs, and insurance, reducing the landlord’s outgoings and improving net yields.

For business owners, buying your own premises means you’re no longer paying rent to a landlord, you’re investing in your own asset. This can lead to cost savings over time, improved cash flow, and the ability to build equity as you repay the mortgage. You also gain full control over the property, allowing you to modify or expand the space to suit your operations without landlord approval.

Commercial property can also be a powerful wealth-building tool. Over time, the property may increase in value, offering capital growth alongside rental returns. For investors, it can act as a diversification strategy, especially when held alongside residential properties or other investments. Properties let to blue chip tenants on long leases can also enhance the property’s value and make resale more attractive.

There are also potential tax advantages, such as claiming capital allowances on certain assets within the property (like fixtures and fittings), or purchasing through a pension structure such as a Self-Invested Personal Pension (SIPP), which can offer tax efficiency.

While commercial property involves higher upfront costs and more complex management, the potential for strong returns, reduced outgoings, asset control, capital appreciation, and tax planning makes it a highly attractive option for many business owners and investors.

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While commercial mortgages can provide long-term ownership benefits and help businesses build equity, they come with several notable disadvantages. One of the biggest barriers is the large deposit requirement, usually between 0% and 40%, which can tie up a substantial amount of capital that could be used elsewhere in the business. The interest rates on commercial mortgages are typically higher than those on residential or buy-to-let mortgages, reflecting the greater risk lenders take on. In addition to that, borrowers often face higher upfront fees, including arrangement, valuation, and legal costs, which can make the initial setup quite expensive. The application process itself tends to be slower and more complex, often taking 6 to 12 weeks, and requires extensive documentation, financial scrutiny, and legal due diligence. Most commercial mortgage products come with variable or short-term fixed rates, which can lead to uncertain monthly repayments, a potential issue in times of rising interest rates. For owner-occupiers, there is the added risk that if the business struggles or defaults on payments, the property could be repossessed, potentially disrupting operations. Some lenders may also ask for personal guarantees, putting directors’ or owners’ personal assets at risk. Finally, commercial property is subject to market fluctuations, so if property values drop or it becomes difficult to secure or retain tenants (in the case of investment properties), the borrower could face reduced equity or rental income, impacting the overall return on investment.

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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.

For owner-occupied commercial mortgages, where a business is purchasing premises to trade from, lenders are often willing to offer the full 25-year term—especially if the business is financially stable and the property is standard, such as an office, shop, or light industrial unit.

For commercial investment mortgages, where the property is being let to a tenant, the length of the lease can directly impact the loan term offered. Lenders generally prefer the lease to run for at least as long as the mortgage term, or close to it, to ensure there’s sufficient rental income to cover repayments. If the lease is short or close to expiry, lenders may limit the loan term or request additional security.

Another important factor is the borrower’s age. For sole traders, partnerships, or director-led companies, lenders often consider the age of the individual borrowers or directors when setting the term. In many cases, lenders want the mortgage to be repaid by the time the borrower reaches age 70 or 75, which can shorten the term available—especially for older applicants.

While 25 years is generally the upper limit for a commercial mortgage, in practice, the actual term offered may be shorter depending on the lease, property type, borrower’s age, and overall risk.

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Whilst some Commercial mortgage lenders do enforce a minimum income requirement (often £25,000), the majority of lenders do not have a minimum income requirement, as long as some level of an income can be evidenced.

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A “day one mortgage” allows you to remortgage your property without the traditional waiting period. Historically, many commercial lenders adhered to a “six month rule”, which posed challenges, particularly for investors employing the Buy, Refurb, and Refinance (BRR) strategy. If you’re an investor looking to capitalise on this approach, the good news is you no longer have to wait 6 months to remortgage the property based on its updated post-refurbishment valuation!

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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. With an interest-only structure, you only pay the interest on the loan each month, and the full loan amount (the capital) is repaid at the end of the term, usually through a sale, refinancing, or a structured exit plan. This can be a useful option for commercial mortgage business borrowers who want to maximise short-term cash flow or invest in properties with capital growth potential.

Interest-only terms are more commonly available on commercial business mortgage deals for investment properties, rather than owner-occupied ones. Lenders usually require a lower loan-to-value (LTV)—often below 65%—and a clear repayment strategy. If you’re buying a property with tenants in place, the strength of the lease and the tenant’s covenant will also influence the lender’s decision. The stronger the income stream, the more likely you are to secure favourable terms.

While it can be harder to access an interest-only commercial mortgage for start-up business cases, it’s not impossible. If you have strong personal assets, a solid business plan, or a clear exit route, some specialist lenders may consider a flexible interest-only option as part of a growth strategy.

To see what’s available and how much your repayments might look like, try our commercial business mortgage calculator or speak to one of our brokers for tailored advice. Interest-only commercial mortgages can be a smart solution in the right circumstances—but they require careful planning and lender alignment.

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Just like standard mortgages, there are also Commercial mortgage lenders that allow for applicants with adverse credit. So whether you have missed payments, CCJs, defaults or even an IVA, we can still source you with a suitable HMO lender. If you have discharged from bankruptcy then your options will become better after 3 years and also subsequently 6 years.

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Age shouldn’t be a barrier! Contemplating a commercial mortgage post-retirement? You’re in good company. Numerous lenders in this domain are age-flexible. Contact us to pinpoint the best option for your post-retirement plans!

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Entrepreneurs eyeing mixed-use properties should mull over a commercial mortgage. Eligibility is contingent on financial stability, creditworthiness, and business performance. Engaging a commercial mortgage specialist is prudent. Lenders typically gauge loan offerings against your EBITDA, ensuring your venture is profitably robust.

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Application prerequisites vary among lenders, but frequently sought documentation includes:

Personal bank statements (typically covering 3-6 months).

Business financial reports (usually for the past 3-6 months).

For those occupying their businesses, two-year account summaries to validate business profitability.

Details on income and expenses.

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Yes.

As long as your SASS provider has permitted the intension of the funds, we work with mortgage lenders that recognise the source of these funds. Our lenders would need to see the trust documents associated with the SASS pension.

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Yes

We work with lenders that have designed products tailored to lend to a SASS or a SIPP pension scheme that holds property. It is important your strategy and plans coincide with the pension providers rule and guidelines.

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No.

Buy to let mortgage lender will only lend against residential property. If you have a commercial property, you will need to apply for a commercial mortgage.

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Yes.

However, it’s important to note that while these financing options can be attractive for profitable projects, they may not always be suitable. Commercial Mortgages carry the requirement for searches at legals, depending on the local council can take up to 8 weeks. Therefore, our auction clients tend to opt for bridging finance in the first instance unless of course buying at modern action where you may have 56 days to complete rather than the standard 28.

It is important you get your solicitor to escalate your case via a letter to the bank, passed on by your brokers to skip the waiting queues if you have a genuine urgency such as auction completion dates.

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We assist our clients with Commercial mortgages in England, Wales, Scotland and Northen Ireland.

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England is one of the UK’s busiest markets for commercial property, with strong demand across retail, office and mixed-use spaces. We assist with business operator and investment mortgages across the whole of the UK. Specialising in commercial mortgage London advice and support. Whether you’re buying refinancing or investing through a limited company. As a trusted commercial mortgage broker London, we work with top commercial mortgage lenders London to secure competitive commercial mortgages London for offices, retail units, buy-to-let opportunities, and more. We also support clients across England with services in commercial mortgages Manchester, Leeds, Liverpool, and commercial mortgages Birmingham. From semi-commercial mortgage London deals to commercial property mortgage London applications, we make the process simple for business owners, investors, and developers. For best commercial mortgage brokers in London, and commercial mortgage London rates, you’re in the right place.

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Scotland is a key region for commercial property investment, with high demand across farms, restaurants, pubs, and industrial mortgages. We specialise in commercial mortgage Scotland based solutions, supporting investors, developers, and business owners with expert guidance and tailored finance. Whether you’re based in Edinburgh and looking for a commercial mortgage Edinburgh opportunity or seeking a commercial mortgage broker Glasgow to support your next project, our experienced commercial mortgage brokers Scotland are here to help. We work with a wide panel of lenders to offer the best commercial mortgage Scotland options, including commercial business mortgage Scotland, semi-commercial lending, and buy-to-let. As a leading commercial mortgage broker Scotland, we provide full support from initial enquiry to completion—alongside tools like our commercial mortgage calculator Scotland and up-to-date insights on the commercial mortgage Scotland rate. Use our commercial mortgage Scotland calculator to check affordability and connect with trusted commercial mortgage brokers in Scotland today.

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Wales is home to a thriving commercial property market, with strong demand across Cardiff, Newport, Swansea, and beyond. We offer expert support with every type of commercial mortgage Wales and wide —helping business owners, investors, and developers secure tailored finance for offices, restaurants, pubs, and hotel mortgages. As a trusted commercial mortgage broker Cardiff, we work with leading lenders to deliver the best commercial mortgage Cardiff deals, whether you need a small commercial mortgage Cardiff or full-scale development funding. We specialise in commercial mortgages Cardiff, commercial mortgage Newport, and commercial mortgages Swansea, along with semi-commercial mortgage Cardiff and commercial BTL mortgage Wales solutions. Our team also includes commercial mortgage broker Wales specialists, commercial mortgage brokers in South Wales, and experts in commercial mortgage brokers property development finance Cardiff. From commercial mortgage Cardiff rates to commercial buy to let mortgage brokers Cardiff, we’re here to help you move forward with confidence.

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Northern Ireland offers strong opportunities for commercial property investment, with demand across sectors like care homes, guest houses, healthcare facilities, and storage units. We provide expert support for anyone seeking a commercial mortgage Northern Ireland, offering tailored finance solutions for investors, developers, and business owners. As experienced commercial mortgage brokers Northern Ireland, we work closely with a panel of trusted commercial mortgage lenders Northern Ireland to secure the most competitive deals—whether you’re applying in Belfast, Derry, Londonderry, or Lisburn. From commercial property mortgage Northern Ireland to limited company and semi-commercial lending, we help you access the best commercial mortgage Northern Ireland options with clarity. Use our commercial mortgage Northern Ireland calculator to assess borrowing potential and compare current commercial mortgage Northern Ireland rates and commercial mortgage rates Northern Ireland with expert help from a leading commercial mortgage broker Northern Ireland. Explore how commercial mortgages Northern Ireland can support your next business move.

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