Yes, you can get a mortgage on a commercial property, whether you’re buying premises for your business or investing in a property to let. For a complete overview of how these loans work, see our detailed guide on what a commercial mortgage is. Eligibility depends heavily on the property type, its intended use, your financial position, the deal structure and, for businesses, your trading history.
Commercial mortgages are assessed individually and are often tailored (unlike off-the-shelf products which dominate in homeowner mortgages), so the options available to one buyer may differ from those available to another. That’s why there’s no single best commercial property lender: the right one depends on your situation.
This article covers who can qualify, which property types are harder to finance, which finance providers are worth shortlisting and how Brickflow can help to find lenders that fit your commercial property purchase.
Commercial mortgages are available to business owners, property investors and a range of borrower structures, including sole traders, partnerships and limited companies. Whether you’re buying a shop or office, warehouse or gym, a commercial mortgage can be the best long-term finance option for owners and investors alike.
The two key categories of who can get a commercial mortgage, and how they can be used are:
Buyer structure also influences the options available. Sole traders, partnerships and limited companies can borrow against a commercial property. Investors often use a special purpose vehicle (SPV), a company set up specifically to hold property, which commercial mortgage lenders routinely deal with. A new business or first-time commercial property buyer can still qualify. However, limited trading history may mean a larger deposit, additional security or stronger financial evidence is needed.
Head to our guide on commercial mortgage requirements for more details.
Not every commercial property will be considered by every commercial lender. If you’re buying something that’s a mixed-asset, has multiple tenancies or deviates slightly from a straightforward purchase, it’s good to understand lender constraints, and how the property’s use and legal arrangements can narrow your options.
Semi-commercial and mixed-use property combines commercial space with residential accommodation, such as shops with flats above. Fewer lenders may consider these properties, and the available terms can be less competitive than for straightforward, single-use premises. The split between residential and commercial use, and whether the parts share one title, can also affect the finance available. If you’re financing a semi-commercial property, compare lenders that specifically accept mixed-use security, as some mainstream commercial lenders won’t.
Short or non-standard leases can make investment purchases harder to finance. Lenders want confidence that rental income will continue for long enough to support the borrowing. A short unexpired lease, unusual lease provisions or a vacant property may reduce the number of suitable lenders.
Specialist and leisure properties, including hotels, pubs and healthcare premises, can require lenders with relevant sector experience. Their assessment may depend on the property’s specific use, how the business operates and the reliability of its income. Lenders that specialise in commercial property finance, including challenger banks and non-bank lenders, are often more flexible here than high street banks.
For these situations, a generic comparison of rates is unlikely to be enough. When buying a commercial property with a mortgage, shortlist lenders whose criteria accept your property type and borrower structure first, then compare rates. A lender with a suitable rate is of little use if its criteria exclude the deal.
Brickflow gives borrowers and brokers access to structured commercial mortgage lender criteria, making it easier to identify potential finance for different property types and buyer structures.
Rather than approaching lenders individually, you can compare available options from hundreds of lenders against the details of your purchase. This is particularly useful for semi-commercial properties, specialist premises or applications involving a new business, where lender appetite can vary considerably.
The commercial mortgage calculator lets you enter details of your deal and compare potential borrowing options, including rates, deposit requirements, loan-to-value ratios and eligibility criteria.
Start with the commercial mortgage calculator to see which lenders may fit your circumstances. You can also explore the commercial mortgage lenders comparison to understand the providers available through Brickflow.
Yes. Some lenders consider first-time buyers and businesses without an established trading record. You may need a larger deposit, a detailed business plan, additional security or evidence of other income. Options depend on the lender and the strength of the overall application.
Yes. Limited companies can borrow to purchase commercial property, and many property investors use an SPV to hold their investment. Lenders assess the proposed borrowing structure alongside the property, affordability and any required personal guarantees.
Generally, yes. Fewer lenders accept mixed-use properties, and terms may be less competitive than for single-use commercial premises. The proportion of residential and commercial space, title arrangements and intended use can all affect eligibility.
Possibly. Established trading history is preferred by many lenders, but requirements vary, so compare criteria before applying. Some lenders will consider a new business if the wider case is strong, supported by credible forecasts, a suitable deposit, additional security or relevant experience in a strongly related industry.
Shortlist lenders whose criteria match your property type, intended use and borrower structure. Depending on the deal, that may include high street banks, challenger banks and specialist non-bank lenders. Comparing criteria across a wide lender panel is the quickest way to narrow the list.
For most buyers, a commercial mortgage. Owner-occupiers are assessed on business affordability, while investors are assessed on rental income and lease strength. A bridging loan can help if you need to complete quickly or refurbish before refinancing.
High street banks lend on commercial property, but challenger banks and specialist lenders are often more flexible on semi-commercial, specialist or new-business deals. Brickflow’s commercial mortgage lenders comparison shows which providers are available.