Commercial Mortgage Rates Compared

How to compare commercial mortgage rates with Brickflow

Using Brickflow’s commercial mortgage comparison tool is ultra-easy and ultra-fast. Enter your property details in seconds and get instant, live loan options from across the market.

What’s more, when you have found the best loan for your commercial property, you can lock in your rates by requesting a DIP/DIPs (Decision in Principle). You’ll then receive multiple offers back within the hour.

Here’s how to use our live market comparison tool:

1. SEARCH & COMPARE 150+ lenders, instantly

• Enter your property details and model your deal against live loans, comparing rates, fees, LTVs, deposit requirements and more on mortgages available to you
• Instantly see how much you can borrow and how much it will cost

2. SECURE a same-day DIP (our record is 4 minutes)

• Shortlist your preferred loans
• Request multiple lenders bid on your project and choose the best deal

3. APPLY directly from the platform with your intermediary or a Brickflow partner

• Our digital Smart Appraisal™ is the only tool on the market that connects directly with lenders, and covers everything they need to know to make fast, reliable credit decisions
• If one lender says no, apply to another with just one click, meaning no more repetitive form-filling

Your intermediary will manage your application and ensure you’re happy with the loan terms.

When you compare commercial mortgages on Brickflow, your search results will show you the best commercial mortgage rates based on the details you’ve entered. Bear in mind that many factors affect the ‘best rate’ you can achieve, including:

• The asset: Lenders consider location, commercial use, valuation and market demand to determine their lending parameters.

• Deal structure: Loan term, loan to value (LTV), interest + capital or interest-only repayments can all affect rates.

• Risk profile: Both the borrower and the asset. Low risk assets with long-standing rental contracts, particularly from big high-street names, and borrowers with good credit history and strong financials/trading accounts typically fare better with lenders.

• Certainty and flexibility: In some circumstances, a loan with more flexible terms may be more suitable than the loan with the best rates.

We compare 200,000+ data points every week from over 150 lenders to deliver accurate market ranges, but to lock in the rates you need to secure a DIP. It takes just minutes, is free and there’s no credit-score or obligation to take the loan.

What is a commercial mortgage, and how does it work?

A commercial mortgage is a long-term borrowing arrangement, used to purchase or refinance commercial property. 

Like a homeowner mortgage, they are repaid monthly over a set term – typically 15 - 25 years –  but some commercial mortgage lenders will stretch to 30 years. The monthly payments are either capital + interest or interest only, in which case the borrower will still owe the full loan amount at the end of the term. 

The monthly payments are determined by:

• The size of the loan
• The size of your deposit
• The interest rate
• Whether it’s capital + interest or interest-only payments
• Fixed or variable commercial mortgage rates

There are two types of commercial mortgages:

• Commercial investment mortgages: These are mortgages for commercial properties that will be let to generate income. In other words, a commercial buy-to-let mortgage. Lenders consider the known or projected rental income to assess affordability/serviceability
  
  
• Owner-occupied commercial mortgages: Where the commercial property will be used by the borrower as their own business premises. The loan serviceability is tested against the strength of the business

Lenders will consider the Debt Coverage Ratio of the loan - a metric used to ensure that the property income, or business trading accounts, can service the monthly payments, with a sufficient buffer. Most lenders prefer a monthly income of around 1.25x the expected monthly payments.

To find out more about commercial mortgages, click through to our dedicated page.

What can a commercial mortgage be used for?

Commercial mortgages can be used for a range of semi-commercial and commercial property transactions, typically involving:

• Buying a commercial property
  • As an investment, to rent to a third party (or parties) and generate a profitable rental income
  • To acquire a premises for your own business operations
• Refinancing a commercial property
  • Releasing equity to finance essential business equipment or upgrades
  • To expand or refurbish the property
  • To invest elsewhere

Examples of commercial property include:

• Care Home
• Education
• Heavy Industrial
• Hotel 
• Leisure
• Licensed HMO
• Light Industrial
• Medical
• Mixed Use (part residential part commercial)
• Mixed Use (All commercial)
• Multi-Unit freehold block
• Office
• Retail 
• Retirement
• Student

What to consider when comparing commercial mortgages

When comparing commercial mortgages, consider what is most important for your circumstances and current financial situation, and what you hope to achieve from the investment. 

For example, lower equity contribution or lower monthly payments?

Use Brickflow’s live-market commercial mortgage calculator to see how much you could borrow and directly compare loan rates, monthly payments, arrangement fees and total costs from banks, non-banks and specialist lenders.

If we look at different loan examples for the same property, we can see that the best rate doesn’t necessarily mean the best loan for your needs.  

The commercial property:

• £1m purchase
• £9,000 monthly rental
• 20 year term
• Capital + interest
• 2 year fixed rate

Some things to consider when comparing these commercial mortgage examples:

• Arrangement fees: These can be added to the loan or paid upfront. If you add to the loan then you’ll pay interest on the amount. 
  
  The first loan is offered with a 5% arrangement fee of £32,500, but the lowest rate; the second example has a higher rate but just £13,000 in arrangement fees.
  
  
• Loan to value (LTV): How much equity do you want to contribute? In the third example, the lender is offering 75% LTV, reducing deposit requirements by £100,000. Can you  invest this elsewhere?
  
  
• Monthly repayments: Do you have the income you expect after making the monthly repayments? For owner-occupied properties, can you comfortably afford these monthly payments and how do they compare to what you currently pay (either in rent or finance)?

Other things to consider:

• Fixed rate or variable: Fixed rates are available for 2, 3, 5 or 10 years and give you payment security. However, if you fix for 10 years, for example, mortgage rates could be lower. Can you afford any increases in repayments if the rates change?
  
  
• Loan term: A shorter term means you will be mortgage-free sooner, increasing your monthly income, but a longer term (up to 30 years) means your monthly payments will be lower. 

Run your numbers though Brickflow’s commercial mortgage comparison tool to instantly see how viable your project is. When you know actual borrowing costs, you can accurately calculate if your investment will deliver the rental yield you expect and if the property is correctly priced.

To compare commercial mortgage options properly, request your no-obligation, completely free DIPs from multiple lenders through the Brickflow platform. You then have binding terms (subject to due diligence and valuation) with rates and fees, as well as further information to compare, such as early exit fees and flexibility of terms.

Choosing the best commercial mortgage deal for your needs

To choose the best commercial mortgage deal for your needs, you need to compare actual rates and costs from lenders across the entire market.

But in an opaque market, that can be difficult. If your property isn’t a straightforward case, like a single HMO (House of Multiple Occupancy) or MUFB (Multi-unit Freehold Block), you will likely require a loan tailored to fit. That means repetitively inquiring with multiple lenders to find the right deal.

Unless you’re using Brickflow’s live market comparison. It gives you instant access to the best commercial mortgage rates and deals, enabling you to make an informed decision based on actual borrowing options.

With commercial property, if you don’t get your finance right, you’ll struggle to make your deal stack up, which is why shopping around the commercial mortgage market is key to a successful investment.

When you’ve shortlisted your loans on Brickflow, a broker can add further insights on who is the best lender for your situation; they might be able to provide insight on which lenders have secured new funding lines and whose appetite best aligns with your deal.

Choosing the Right Commercial Real Estate Lender for Your Situation

Some key considerations when choosing the right lender and matching them to your deal:

• Property type: Standard commercial assets suit mainstream or challenger banks; mixed-use or specialist properties often require alternative lenders.
  
  
• Stabilised vs transitional: Stabilised, income-producing assets can attract sharper pricing, while transitional or value-add assets and short-term leases are better suited to flexible specialist lenders.
  
  
• Owner-occupied vs investment: Owner-occupied deals typically fit bank criteria; complex investment structures often sit outside bank appetite.
  
  
• Time pressure & certainty: Where speed or deal certainty matters, lenders with streamlined credit processes may outperform lower headline rates tied to slower approvals.

Pros and cons of a commercial mortgage

Commercial mortgages, as with other finance solutions, can have both advantages and disadvantages, and it’s helpful to know both sides.

The pros of commercial mortgages

• Long-term lending: Repaying over a longer period (up to 30 years) is cheaper than using short-term funding such as a commercial bridging loan and spreads the costs into affordable repayments

• Fixed interest rates: For up to 10 years, meaning you know your exact mortgage costs every month

• More flexible borrowing: With the rise of challenger banks, there are more commercial mortgage lenders operating in the space, meaning lending has become more flexible. Interest-only and higher leverage as standard are recent evolutions to commercial mortgages.

• Higher rental yields: A commercial property investment can produce better rental yields than a residential investment.

• Better for business: Commercial mortgage repayments can be less than or similar to monthly rental commitments, but your money is invested into a property, with potential for capital gains. Buying your own premises over renting also offers more stability and means you’re not subject to landlord decisions. 

• Tax benefits: Interest paid on commercial mortgages is tax deductible, which can help reduce your business's annual tax overheads.

The cons of commercial mortgages 

• Higher risk investment: Commercial property is widely perceived as higher risk than residential. It is more likely to be vacant for longer periods of time and securing a tenant can be more difficult than residential letting.

• Higher monthly payments: The mortgage still has to be paid during periods without tenants. Even with the best commercial mortgage rates, UK commercial properties typically cost more than residential properties.

• The market: The pandemic changed the commercial property landscape, decreasing occupancy rates and making capital gains less certain. A bad finance deal can easily make your commercial investment unviable.

Alternatives to commercial mortgages?

Depending on how you intend to use the commercial mortgage, there may be alternative financing options. 

Commercial mortgages are intended for long-term investment in properties that can be inhabited or need just light refurbishment work.

Alternatives to a commercial mortgage include:

• Development finance: If you are looking to purchase and carry out extensive renovations or development work, development finance would likely be better suited to your needs. It is a tailored loan drawn down in stages to specifically meet your build schedule. Development finance lenders are experts in arranging this type of funding and working with a wide range of property developers and projects. It is short-term, typically available for 1 - 4 years.
  
  
• Bridging finance: A short-term bridging loan can offer a quick solution. Depending on the plans for the property, bridging alternatives to commercial mortgages include: 
  
  
  • Refurbishment finance: Depending on the scale of the works and the completion timeframe, refurbishment finance could cover a quicker turnaround renovation project.

• • Auction finance: Can facilitate buying at auction, where the auction house requires a quick 28-day timeframe for completing the purchase. Find out more about auction finance.

• • Purchase/refinance bridging: You can use a bridging loan to release equity from your commercial property for a short period of time, rather than completely refinancing with another commercial mortgage.

You can instantly compare development finance rates and compare bridging loans on Brickflow too.

Use Brickflow's comparison tool to find the best commercial mortgage rates

To find the best commercial mortgage rates from across the UK market, use Brickflow’s live comparison tool.

It takes seconds to enter your property details and access real-time borrowing options from a wide range of lenders, including banks and specialist commercial mortgage lenders.

Unlike other commercial mortgage rates comparison tools, where you guess rates and get a vague idea of monthly repayments, Brickflow enables you to compare actual borrowing options based on your criteria, including details on:

• Interest rates
• Deposit requirements
• Arrangement fees
• Maximum LTV ratios
• Monthly costs
• Eligibility criteria

Brickflow is not a lender and does not set commercial mortgage rates. Instead, it’s an independent market lens, acting as a comparison and research layer, helping borrowers understand market pricing ranges, lender appetite, and how loan structures differ across banks and specialist lenders. This allows users to see which types of lenders are suited to their property, risk profile, and time constraints, rather than assuming there is a single “best” rate for every deal.

Our software opens up the market to everyone, so you can be sure that you’ve done a market-wide search and found the best commercial mortgage rates available.