Commercial mortgages for UK businesses

Owning your premises changes the maths of a business. Rent stops disappearing every month, the building can grow in value, and you control your own space. A commercial mortgage is how most UK businesses get there, and the right lender makes a big difference to the deposit, the rate and how quickly it completes.

What a commercial mortgage can fund

Buying your own premises. An office, workshop, yard, unit, shop or surgery that your business trades from. Lenders call this owner-occupied, and it usually gets the best terms.

Commercial investment property. Shops, offices or industrial units you let out to other businesses, and mixed-use buildings with flats above a shop.

Refinancing. Moving an existing commercial mortgage to a better deal, or coming off a bank loan that no longer suits you.

Raising capital. Releasing equity from a property you already own to fund growth, a bigger contract or another purchase. See business loans for unsecured options.

Owning or renting your premises

When you rent, every payment goes to your landlord. When you own, part of every payment builds equity in an asset on your balance sheet. Many business owners also buy their premises through a pension or a separate property company and rent it back to the trading business. The right structure depends on your tax position, so speak to your accountant alongside us.

How much can you borrow?

Most lenders lend a percentage of the property's value, often up to around 70 to 75 per cent for owner-occupied premises, so you will usually need a deposit of 25 per cent or more. Investment properties are judged on the rent they bring in. The exact figure depends on the property, your business and the lender.

What lenders will ask for

How it works with Flite

Tell us about the property and your business. Your Lending Expert checks our panel of 120+ lenders, from high-street banks to specialist commercial lenders, and lays out the options plainly. We stay with you through valuation, legals and completion.

Flite is free to you. We are paid by the lender when your deal completes, and we tell you how that works up front.

Important: Your property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it. All finance is subject to status and lender criteria. Commercial mortgages for business purposes are not usually regulated by the Financial Conduct Authority.