Commercial mortgage financing
Buying or refinancing a commercial property is a big step for any business. Whether you're purchasing a new office, warehouse, or retail space, a commercial mortgage can help you spread the cost over time - freeing up capital to invest elsewhere. Compare options from 80+ UK lenders with Funding Options by Tide.
Commercial mortgage: what it is and how it works
What is a commercial mortgage?
A commercial mortgage is a loan secured against a property used for business purposes. It works similarly to a residential mortgage, but it's designed specifically for commercial buildings - like offices, warehouses, factories, or retail units.
You borrow a lump sum to buy or refinance a property and repay it over a fixed term, typically between 5 and 25 years. The property acts as collateral, which can make this form of borrowing more accessible for eligible businesses.
What can it be used for?
Buying your own premises
Refinancing existing commercial property loans
Purchasing land for development
Expanding or relocating your business
Investing in commercial property as a landlord
How it differs from residential mortgages
Feature | Commercial mortgage | Residential mortgage |
Purpose | Business property | Personal home |
Interest rates | Typically higher | Typically lower |
Deposit required | 20%–40% | 5%–20% |
Term | 5–25 years | 10–30 years |
Regulatory protection | Fewer protections (not FCA regulated) | Consumer protections apply |
The different types of commercial mortgages
Owner-occupier mortgage
Ideal if your business plans to operate within the property. These owner occupied commercial mortgage products often come with lower commercial mortgage rates and can stretch over 15 to 25 years. Typically, you can borrow up to 75% of the property’s value.
Buy-to-let mortgage
Designed for rental properties—commercial or residential. The lender focuses on projected rental income to gauge affordability. While potentially lucrative, a buy to let commercial mortgage comes with the risk of market fluctuations in rent demand.
Partial commercial mortgage
Perfect for mixed-use properties (e.g., a retail storefront with flats above). A semi commercial mortgage usually factors in both rental potential and your business’s income.
Bridging loans for commercial purposes
for short-term funding or development
How does Funding Options work?
Tell us how much you need
We’ll ask a few questions about your business and the reason for your loan.
Get quotes instantly
Our smart technology will compare quotes from up to 80+ lenders to help you find the ideal business loan.
Apply for a Business Loan 🎉
We'll be there to guide you through every step of the process.
Trusted by over 17,000 customers
Estimate your costs today
If you're ready to take your business to the next level, use our business loans calculator to get an idea of what you can afford.
Want to understand the cost of your loan?
Use our business loan calculator below to find out how much you can borrow to take your business to the next level.
Calculations are indicative only and intended as a guide only. The figures calculated are not a statement of the actual repayments that will be charged on any actual loan and do not constitute a loan offer.
Monthly payments
-
Monthly interest
-
Total interest
-
Length of loan
-
Total cost of loan
-
Financial product information
Representative example*
• 7.63% APR Representative based on a loan of £50,000 repayable over 24 months.
• Monthly repayment of £2,252.94. The total amount payable is £54,070.56
*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.
Annual Percentage Rates
Rates from 2.75% APR
Repayment period
1 month to 30 years terms
Things to consider
❗ Deposit requirements
Typically 25%–40% of the property’s value
❗ Fees
Arrangement fees, valuation costs, and legal fees may apply
❗ Repayment risk
Property can be repossessed if repayments are missed
❗ Eligibility checks
Lenders assess credit score, trading history, and income
Am I eligible for a commercial mortgage?
Eligibility depends on several factors:
Your business type and trading history
Your deposit size (usually 25% or more)
The type and value of the property
Your credit history and financial accounts
Intended use of the property (owner-occupied vs rental)
Startups may find it more challenging to qualify unless they can offer additional security or a guarantor.
Alternatives to commercial mortgages
Short-term funding for property purchases or development
For construction or refurbishment projects
Unsecured or secured finance for general business needs
For purchasing equipment or vehicles alongside property
How to apply
Apply through Funding Options by Tide
Share details about your business and the property you want to buy or refinance.
Compare offers from 80+ lenders.
Provide documents such as accounts, bank statements and property valuations.
Get approval and complete legal checks.
Receive funds to complete your purchase or refinance.
Why choose Funding Options by Tide?
Funding Options by Tide helps UK SMEs find fast, tailored business finance by connecting them with over 80 trusted lenders. Backed by Tide and FCA-regulated, the service is free and easy to use.
Compare 80+ lenders
Access a wide range of trusted lenders: from high street banks to alternative finance providers.
No fees or obligations
Our service is completely free to use. You’re in control of who you borrow from.
Fast, personalised results
Get real-time matches based on your business profile and funding needs.
Expert support when you need it
Our team is here to help — by phone, chat, or email.
FAQs on commercial mortgages
How much deposit do I need for a commercial mortgage?
Most lenders require 20–35% of the property’s value.
What’s the maximum term of a commercial mortgage?
Usually between 3 and 25 years, depending on the lender and property type.
Can I get a commercial mortgage as a startup?
It’s more challenging without trading history. Some lenders may consider it with a strong deposit or additional security. See business loans for new businesses.
What’s the difference between a commercial mortgage and a buy-to-let mortgage?
Commercial mortgages fund business premises, while buy-to-let is for landlords buying residential property to rent.
Can I refinance my existing property?
Yes – refinancing can lower repayments, change your rate type, or release equity.
Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.
It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.
Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.
Vivek Seda
Business Finance Manager
Vivek is the Asset Based Lending Manager at Funding Options by Tide. Vivek has been in the industry for over 10 years, working for both lenders and brokers. His product specialisms cover Asset Finance, Invoice Finance, Property Finance and structured transactions.