Commercial Mortgages for Businesses
Buying premises to trade from, or investing in commercial property to let? A commercial mortgage lets you spread the cost over the long term and build equity rather than paying rent. As a Reigate-based credit broker serving Surrey, London and the wider UK, Accuprime sources and compares commercial mortgage products from across the market.
What is a commercial mortgage?
A commercial mortgage is a long-term loan secured against business or investment property — offices, shops, warehouses, industrial units, mixed-use buildings and more. Like a residential mortgage it is repaid over many years, but the underwriting is different: lenders look closely at the strength of your business or the rental income the property generates, and they typically lend at a lower loan-to-value than on a home. The property acts as security, so the lender can recover it if the loan is not repaid.
For many businesses, owning premises rather than renting means predictable costs, the chance to benefit from any rise in property value, and an asset on the balance sheet. For investors, commercial property can produce rental yield and capital growth.
Owner-occupier vs investment mortgages
Commercial mortgages fall into two main categories, and they are assessed differently.
| Feature | Owner-occupier | Investment (commercial buy-to-let) |
|---|---|---|
| Who it is for | Business buying its own premises | Landlord buying property to let |
| Affordability based on | Your business's trading performance | Rental income from tenants |
| Key documents | Business accounts and forecasts | Tenancy details and rental schedule |
| Typical use | Stop paying rent, secure your location | Generate yield and capital growth |
Knowing which category you fall into shapes the lenders we approach and the documents you will need. As accountants as well as brokers, our Reigate team can help present your trading figures or rental projections in the way lenders expect.
Deposits and loan-to-value (LTV)
Commercial mortgages usually require a larger deposit than residential ones, so the loan-to-value is lower. The more equity you contribute, the less risk the lender carries — and the better the rate you are likely to be offered. The exact LTV available depends on the property type, its condition and location, and the strength of the business or rental income behind it. Standard, easily re-lettable premises tend to attract more favourable terms than specialist or single-use buildings.
Refinancing a commercial mortgage
You do not have to stay with your original lender for the life of the loan. Refinancing can secure a lower rate, release equity to reinvest in the business, consolidate other borrowing, or move to a lender better suited to where your business is now. Whether it pays off depends on your current rate, any early repayment charges, the latest valuation and your wider plans. We compare your existing deal against the market so you can make an informed decision.
How our broker process works
We act as a credit broker, not a lender. Commercial mortgages involve more moving parts than a standard loan, so our process is geared to keeping things on track:
- Understand the deal — property type, purchase or refinance, amount, deposit and your goals.
- Match to lenders — we identify funders whose criteria fit the property and your profile.
- Prepare the case — we help assemble accounts, forecasts, rental details and supporting documents.
- Manage to completion — we help coordinate valuation, underwriting and legals through to drawdown.
Finance is subject to status, eligibility and lender terms, and rates and terms depend on the lender and your circumstances. There is no single market rate — every commercial mortgage is priced on its own merits.
What affects approval and cost
Lenders consider the property (type, condition, location and resale appeal), your deposit and the resulting LTV, the strength and stability of your business income or rental income, your credit profile and trading history, and any additional security. Up-to-date accounts, realistic forecasts and a clear repayment plan all support a stronger application and better terms.
Pros and cons
Advantages: build equity instead of paying rent, gain a balance-sheet asset, enjoy more predictable long-term costs, potentially benefit from capital growth, and — for investors — earn rental yield. Things to weigh: a larger deposit is needed, the property is at risk if you default, valuation and legal costs apply, rates may vary over the term, and arranging a commercial mortgage takes longer than other finance.
Get started
Tell us about the property and what you want to achieve, and we will compare options across our lender panel. Explore our full finance services, use the business loan calculator to model repayments, or contact us for a tailored quote. If you also need to fund equipment or smooth cash flow, see our business loans, asset finance and specialist finance pages.
For general government guidance on funding and support for businesses, see business finance support.
Frequently Asked Questions
What is the difference between an owner-occupier and an investment commercial mortgage? ▼
An owner-occupier mortgage is for a business buying premises it will trade from itself, so lenders assess the affordability against your business performance. An investment (commercial buy-to-let) mortgage is for property you let to tenants, so the rental income is central to the lender's assessment. The two are underwritten differently, and rates and terms depend on the lender and your circumstances.
How much deposit do I need for a commercial mortgage? ▼
Commercial mortgages generally need a larger deposit than residential ones. As a rough guide, lenders often look for a meaningful share of the value upfront, meaning loan-to-value (LTV) is typically lower than on a home loan. The exact figure depends on the property type, the strength of the business or rental income, and the lender. A bigger deposit usually improves the rate available.
What is loan-to-value (LTV) and why does it matter? ▼
LTV is the loan amount expressed as a percentage of the property value. A lower LTV means you are putting in more equity and the lender is taking less risk, which generally unlocks better terms. Commercial lenders cap LTV more conservatively than residential lenders, and the cap varies by property type, with standard offices and shops viewed differently from specialist premises.
Can I refinance an existing commercial mortgage? ▼
Yes. Refinancing can lower your rate, release equity for investment, consolidate borrowing or move to a more suitable lender as your business grows. The benefit depends on your current deal, any early repayment charges, the new valuation and your circumstances. We can compare your existing terms against the wider market to see whether a switch makes sense.
How long does a commercial mortgage take to arrange? ▼
Longer than a personal mortgage, because there is more due diligence: a commercial valuation, legal work, and underwriting of the business or rental income. Timescales vary case by case. Having clean, up-to-date accounts and the right documents ready from the start helps things move more quickly.
Does Accuprime lend the money for the mortgage? ▼
No. We act as a credit broker, not a lender. We source and compare commercial mortgage products from across the market and help you prepare a strong application, but the credit decision and the funds come from the lender. Finance is subject to status, eligibility and lender terms.
Buy or refinance commercial property
Tell us about the property and we'll compare commercial mortgage options across our lender panel. We act as a credit broker, not a lender — finance is subject to status.