Owner-occupied or investment?
An owner-occupied mortgage is generally for premises used by your business. Commercial investment borrowing is generally assessed with the rental income and tenancy arrangements in mind.
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Moneykind business finance guide
Buying business premises or investing in commercial property?
Commercial mortgages can help finance offices, shops, warehouses and other commercial buildings. Whether you plan to occupy the premises or let them to another business can change the lender’s approach.
Explore your finance options →What to know about commercial property
Deposits and loan size
Deposit requirements vary with the property, business, trading history and lender. Do not assume residential mortgage loan-to-value limits apply.
How affordability is assessed
Lenders may review business accounts, trading performance, projected cash flow, existing commitments, property valuation and, for investments, lease terms.
Fees and other costs
Budget for valuation, legal costs, lender arrangement fees, broker fees where applicable and potentially specialist surveys.
Risks to consider
Commercial property may be harder to sell, values and rental income can fall, and a lender may take security over property or other assets.
Before you apply: Finance availability, pricing and terms depend on your circumstances and the provider. Consider independent legal, tax or regulated financial advice where appropriate. Moneykind introduces enquirers to third-party professionals; it does not itself make lending decisions.
How to prepare for an enquiry
Explain what you need
Set out the purpose of the funding, the amount sought, your timescale and how the borrowing will be repaid.
Gather the key information
Depending on the facility, a professional may ask for accounts, bank statements, forecasts, property or asset details and existing borrowing information.
Compare the full commitment
Ask about the total cost, fees, security, guarantees, repayment schedule, early exit terms and what happens if circumstances change.
Understand the introduction
Moneykind helps connect you with a relevant third-party professional. The professional will explain their services, charges and any applicable regulatory status.
Frequently asked questions
Can a new business get a commercial mortgage?
Possibly, but newer businesses may have fewer lenders available and could face more detailed scrutiny of projections and experience.
Can I buy an MOT garage with a commercial mortgage?
Potentially. The lender will consider the premises, business use, trading position and any specialist property or environmental factors.
Are commercial mortgages regulated by the FCA?
Some arrangements can fall within regulation depending on the borrower, security and use. Many business-purpose commercial mortgages are unregulated. The exact status should be checked for the proposed transaction.
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