Commercial mortgages
Finance for the premises your business occupies.
A commercial mortgage is long-term finance secured on business property such as offices, workshops, retail units and warehouses. Tell us about the premises and, where appropriate, we'll introduce your enquiry to an award-winning specialist commercial finance broker.
About 2 minutes · No obligation · UK enquiries
- No credit checkNothing is searched when you tell us about your deal.
- About two minutesOne question per screen, only the ones that apply to you.
- Award-winning brokersSuitable enquiries are introduced to an award-winning specialist commercial finance brokerage.
- Introducer, not a lenderUK commercial property only. Your enquiry is shared with your consent.
In plain English
What a commercial mortgage is, in plain English
A commercial mortgage is a loan secured against a property that is used for business purposes rather than as a home. Owner-occupiers use them to buy premises they trade from, or to refinance premises they already own. The loan is repaid over an agreed term, with the property acting as the lender's security.
Lenders typically look at two things: the property itself and the business that will be paying the mortgage. They will usually want to understand how the business trades, how affordable the repayments look against its income, and how much deposit or equity is going into the deal.
Every lender has its own approach. Terms, deposit expectations and the way affordability is assessed can vary considerably, which is why a specialist broker is often involved in commercial cases. FundingFrame's role is to gather the key details into a clear Deal Snapshot so a specialist can understand your requirement quickly.
Typical scenarios
Where this type of finance tends to come up.
Buying the premises you already rent
A business that has been trading from leased premises for some years and wants to own the building rather than keep paying rent.
Moving to a larger unit
A growing business that has outgrown its current premises and has identified a larger workshop, warehouse or office to buy.
Buying a trading business with its property
Acquiring a going concern such as a hotel, care home or pub, where the property and the trade come together.
Refinancing an existing commercial mortgage
Replacing an existing facility that is coming to the end of its term, or restructuring the borrowing on premises you already own.
Who it may suit
It may be worth exploring if…
- Your business will occupy most or all of the property
- You want to own your premises rather than rent them over the long term
- The business has a trading history that supports the repayments
- You have a deposit, or equity in an existing property, to contribute
- You are looking for a term loan rather than short-term funding
- The property is in England, Scotland, Wales or Northern Ireland
Before you start
Information likely to be useful
You don’t need documents to tell us about your deal, but having a rough idea of the following helps.
- The type of property and roughly what it is worth or costs
- How much you would like to borrow
- How much deposit or equity you can contribute
- How long the business has been trading and its approximate turnover
- Whether you have found a property, made an offer or are still looking
- Who the borrower will be: sole trader, partnership, limited company or SPV
- When you need the finance in place
Deal figures
Know your numbers before you enquire.
A specialist will ask about these ratios in the first conversation. Working them out now makes your Deal Snapshot sharper and the conversation quicker.
Deal figures
Work out your loan-to-value
Enter the purchase price and the deposit you can contribute to see the loan you'd be asking for and the resulting LTV.
Enter the figures above to see the ratios.
Arithmetic only. Lenders set their own limits, and FundingFrame does not assess eligibility or quote terms.
Use these figures in the checkerHow it works
- Step 1: Tell us about your dealAnswer a short series of questions about your property, finance requirement and timescale.
- Step 2: We review the requirementFundingFrame turns the information into a structured commercial finance enquiry.
- Step 3: Speak to a specialistWhere appropriate, the enquiry is introduced to an award-winning specialist commercial-finance partner.
FAQ
Questions about commercial mortgages
Straight answers. Anything specific to your circumstances is for the specialist to discuss with you.
Guides
Related guides
Plain-English reading if you want more background before you start.
- Commercial mortgages
How does a commercial mortgage work?
A plain-English walk through commercial mortgages: what they are for, how lenders assess them, what the process looks like and how they differ from a residential mortgage.
7 Sep 20264 min read
- Commercial mortgages
How much deposit do you need for a commercial mortgage?
Deposit expectations for commercial property are usually higher than for a home, and they vary with the lender, the property and the business. Here's what shapes them.
7 Sep 20264 min read
- Commercial mortgages
Can a limited company get a commercial mortgage?
Yes, and it's very common. This guide covers trading companies, SPVs, what lenders look at behind the company, personal guarantees and the questions to ask before choosing a structure.
7 Sep 20264 min read
Ready to talk about your premises?
Tell us about the property and what you're trying to achieve. Where appropriate, we'll introduce you to an award-winning specialist commercial finance broker.
About 2 minutes · No obligation · UK enquiries