You can finance your first commercial property through a variety of methods, including commercial mortgages, bridging loans, development finance, and even peer-to-peer lending. With Brickflow, comparing lenders and securing funding is faster, easier and more transparent than going through a traditional broker.
Commercial property finance is a broad term for funding used to purchase or develop buildings used for business purposes, from office blocks to warehouses to mixed-use spaces. The right finance can be the difference between a stalled idea and a thriving investment.
In today’s market, opportunities in commercial property are on the rise, fuelled by a return to office-based work and increased bank lending to small businesses. But securing the right finance for your goals still takes strategy.
In this guide, we’ll cover:
The main ways to finance a commercial property in the UK include commercial mortgages, bridging loans, development finance, and private or peer-to-peer lending. With Brickflow, you can compare all of these in minutes to find the right fit for your project.
Each has unique advantages depending on your project, time frame, and available deposit. Read more about commercial mortgage options.
The short answer is yes; first-time investors can secure a commercial mortgage. While it may be more challenging compared to seasoned landlords or developers, it’s certainly achievable with the right preparation and support.
Lenders will want to see that, even without a direct track record in commercial property, you have the means and strategy to manage the investment successfully. This means demonstrating financial stability, presenting a well-researched business plan, and surrounding yourself with experienced advisors or partners where possible.
When assessing an application, lenders typically consider:
Did you know? In 2024, UK commercial real estate lending rose to £36.3 billion, up 11% year-on-year (Bayes Business School). This demonstrates strong lender appetite, even in a shifting market; good news for new entrants who can present a solid case.
While first-time investors may not always qualify for the very lowest rates at the outset, there are plenty of competitive products available. Working with a platform like Brickflow gives you instant access to 100+ lenders, helping you compare terms, forecast affordability, and secure the right deal to kickstart your commercial investment journey.
Typically, you’ll need a deposit of 20% to 40% for a commercial mortgage. The exact percentage depends on the lender, your experience, the type of property, and the level of risk.
Factors that affect deposit size:
Tips for reducing your deposit:
Bridging finance is a short-term loan used to “bridge” a gap in funding, and is ideal for time-sensitive commercial property deals. At Brickflow, we see bridging loans used regularly for auction purchases, land acquisitions, and chain breaks.
How it works:
Pros:
Cons:
Learn more about bridging finance and how much a bridging loan can cost.
Development finance is used to fund new builds or heavy refurbishments of commercial properties. Lenders typically provide funds in staged drawdowns, based on build milestones.
Key features:
Pros:
Cons: