- Who it's for
- UK Ltd companies, PLCs and LLPs buying or refinancing commercial property
- Typical amounts
- Up to £1,000,000 through this service; larger deals need a specialist conversation
- Typical terms
- 3 to 25 years
- Minimum turnover
- £100,000 a year to use Lending Box
- Security
- A legal first (or second) charge over the property; property is at risk if repayments are not kept up
Indicative only. Subject to lender assessment and approval.
Who it's for
- Businesses buying premises they currently rent, trading out of the property themselves.
- Property investors with commercial units looking to purchase or refinance.
- Companies wanting to release equity from property they already own, for investment elsewhere in the business.
- Businesses looking to move from a bridging loan onto long-term finance once a property is ready to let or trade from.
How it works
- 1You tell us about the property, its value, and whether it's an owner-occupied purchase, investment purchase, or refinance.
- 2The lender assesses the property (via valuation), the business's ability to service repayments, and, for investment property, the rental income it generates.
- 3Legal work completes, including registering the charge, and the loan is drawn, usually to complete a purchase or repay an existing lender.
- 4Repayments are made monthly over the agreed term, typically on a repayment or part-repayment, part-interest-only basis.
Owner-occupied vs investment commercial mortgages
Lenders treat these two scenarios differently, since the source of repayment differs.
- Owner-occupied: the business trades from the property, and the lender assesses affordability from business trading income and accounts.
- Investment: the property is let to tenants, and the lender assesses affordability mainly from rental income, often requiring rent to cover repayments by a set margin.
- Mixed-use properties (commercial downstairs, residential above) can be considered but may need a specialist lender.
Deposit and loan-to-value
Commercial mortgages typically require a larger deposit than residential ones.
- Lenders often go up to around 65–75% loan-to-value, meaning a deposit of 25–35% is common.
- A stronger trading history or established tenant can sometimes support a higher LTV.
- Refinancing an owned property to release equity is assessed against its current value, not the original purchase price.
When a deal needs a specialist conversation
Larger commercial mortgages, complex property types, or portfolio purchases go beyond what any online figure can usefully estimate, and we'll always recommend speaking with a specialist directly in these cases.
- Purchases or refinances above £1,000,000.
- Multi-unit or portfolio transactions.
- Specialist property types such as hotels, care homes or licensed premises.
- Complex ownership structures involving multiple companies or trusts.
How a broker helps
Commercial mortgage lenders vary widely in their appetite for property type, sector and loan size. As a whole of market broker, we match your deal to lenders genuinely active in that space, rather than a generic shortlist. Our service is free to your business; we're paid a commission or finder's fee by the lender if finance completes, as set out in our Broker Terms.
Eligibility
- A UK limited company, PLC or LLP (not sole traders or partnerships).
- Annual turnover of at least £100,000, or sufficient rental income for investment property.
- A deposit, typically at least 25–35% of the property's value.
- A clear trading or rental history supporting the repayments.
- Directors willing, in most cases, to give a personal guarantee.
Documents you'll need
- Details of the property, including a recent valuation if available.
- Latest filed accounts and management accounts.
- 3–6 months of business bank statements.
- For investment property, lease agreements and rental income details.
- Photo ID and proof of address for directors.
Advantages
- Fixes a long-term cost in place of rent, and can build equity in an asset the business owns.
- Typically lower rates than short-term secured finance, reflecting the longer, more conventional structure.
- Can include releasing equity for other business purposes alongside the purchase or refinance.
- Interest-only options can ease monthly cash flow for part of the term, depending on the lender.
Things to weigh up
- The property is at risk if repayments are not maintained.
- Requires a meaningful deposit, tying up capital that could otherwise be used elsewhere.
- Valuation and legal costs add to the upfront expense.
- Less flexible than renting if your space needs change quickly.
Worked example (illustrative)
A beauty business currently renting its salon wants to buy the freehold, valued at £260,000, with a 30% deposit of £78,000 available.
A lender offers a mortgage of £182,000 (70% LTV) over 20 years, assessed against the salon's trading accounts and existing rent payments.
Using an illustrative rate of 7.5% a year over 20 years, repayments work out at roughly £1,470 a month on a repayment basis — lower than the salon's current rent. The real rate and term depend entirely on the lender's valuation and assessment.
Property & secured calculator
Total interest (retained)
£17,100
- Maximum available
- up to £200,000
- Amount shown
- £150,000
- Rate
- 0.95% a month
- Repay at the end
- £150,000
Maximum is up to 70% of the property value, less existing mortgages or charges. Bridging interest is usually retained (taken from the loan upfront), so there are no monthly payments.
Illustrative only. Indicative only. Subject to lender assessment and approval.
Frequently asked questions
Related guides
Related funding
Lending Box helps UK businesses access business finance, working directly with businesses and their trusted advisers. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 or over, and terms and conditions apply. Guarantees and indemnities may be required. Lending Box can introduce applicants to a number of providers based on each applicant's circumstances and creditworthiness. We can also make insurance introductions. Lending Box will receive a commission or finder's fee for arranging such finance and insurance introductions. Broker Terms