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Commercial Mortgage Lenders

How to find the right commercial mortgage lender for your needs and circumstances.

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: June 22, 2022

Many entrepreneurs and business owners come to us for help after receiving incorrect advice about commercial mortgages, having approached the wrong providers.

When it comes to finding a good deal with the right lender, it’s always best to seek professional help.

Inaccurate information is rife on the internet and unfortunately, some brokers aren’t equipped to provide whole-of-market advice.

Bad advice can cost you money and can all too often result in your commercial mortgage application being rejected.

That’s why we’re committed to providing clear, reliable and confidential advice.

In this article, we will cover everything you need to know about commercial mortgage lenders.

The advisors we work will be happy to find the best possible commercial mortgage lender for you.

How do commercial mortgage lenders differ to a residential mortgage providers?

Commercial mortgage lenders typically differ from their residential counterparts in the following ways…

  • They usually have higher deposit requirements
  • They typically offer a wider range of mortgage lengths and terms
  • Lending decisions are based on the viability and performance of the business
  • The rates and fees can be higher
  • They base affordability on operating performance, rather than income multiples
  • Their lending decisions are bespoke and made on a case-by-case basis

The commercial mortgage brokers we work with are experts in business property mortgages and have access to every commercial lender on the market.

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We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects.

Ask us a question and we'll get the best expert to help.

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How to find the best commercial mortgage lenders in the UK

The best way to make sure you get a good deal is to work with a knowledgeable and experienced broker who takes the time to understand your situation.

The more your broker knows about you the better, including future plans for your business including expansion and any debts the business currently has.

Here are some other things that your broker will need to know:

  • Your budget
  • Your deposit size
  • Your business’s income and expenditure
  • Your credit rating
  • The location of the commercial property you want to buy
  • The property type (flat, office block)

This can make some people feel a tad exposed but it is your mortgage broker’s job to be discreet and anything you tell them is completely confidential.

Any information will be used solely to find you the best commercial mortgage lender and deal.

Are there ‘bad credit’ business mortgage lenders?

Having ‘bad credit’ can affect your choice of lenders and therefore the rate you pay but it doesn’t necessarily mean that you can’t get a commercial mortgage.

Private and specialist commercial mortgage lenders may be able to help

There are specialist and private commercial mortgage lenders who take a different approach to how they assess applicants with forms of ‘bad credit.’

In fact, in the right circumstances, there may even be lenders who are happy to loan to borrowers who have previously had CCJs or been bankrupt. You’ll pay the premium rates for them, though.

This surprises most people but the reason for this is that every lender has a different set of criteria that they use to determine whether someone is likely to repay their loan.

One lender might focus on income more than any instances of missed loan repayments. Another may look at the date of when the ‘bad credit’ occurred or whether your debts have been settled.

If you would like to find a commercial mortgage lender that accepts bad credit, get in touch.

What to expect from the commercial mortgage lenders

Although it may be true that lending can be more restrictive with high-street banks, it may still be possible to find a business mortgage lender who can accommodate your needs.

Each commercial mortgage lender will have varying eligibility requirements that they ask you to meet and your individual circumstances can also impact the lender’s appetite to lend.

To help you understand how each lender differs, we’ve provided a brief summary of some of the well-known lenders and their position on commercial mortgages at the time of writing.

For an in-depth understanding of how each lender will assess your application and a detailed breakdown of how much you could borrow and why speak to an expert.

Halifax commercial mortgage

Halifax currently offers loan to value (LTV) ratios of up to 60% for commercial mortgages, so if you meet their eligibility criteria, you may be able to purchase a commercial property with a deposit of 40%.

The information available to the public regarding the rates and terms of a commercial mortgage with Halifax is limited, so you will need to contact a broker to apply.

Barclays commercial mortgage

Barclays commercial mortgages are available with LTVs of up to 70%, although each case will be taken on merit, depending on the purpose. Your personal circumstances and your business’s financial situation can affect the rate that you are offered for a commercial mortgage with Barclays.

As well as this, the lending criteria can be strict, so before applying directly and to avoid a mortgage rejection on your credit report, speak to an advisor.

HSBC commercial mortgages

If you meet the eligibility requirements, you may be able to borrow up to 75% of the purchase price or professional valuation of the commercial property you want to buy.

HSBC offer no maximum limit on their commercial mortgages however, the amount that you can borrow and the interest rate you pay will vary depending on many factors including your business’s turnover and outgoings.

Applying for a commercial mortgage with HSBC or any other lender is a big financial decision, so always seek advice from a professional.

Santander commercial mortgages

The interest rates and terms of a Santander commercial mortgage aren’t easily accessible to the public, so contact a broker who has access to this information as well as other lender commercial mortgage rates.

Loans start from £25,001 and Santander state that they will consider any amount higher, although the amount you can borrow will be based heavily on your affordability and situation.

Natwest commercial mortgage

Natwest base their assessments of eligibility for commercial mortgage lending on the credit history of the individual, business owners or directors.

Because of this, it’s important that your credit score and business accounts are in order. A mortgage advisor can help you to improve your credit score and can also advise you on how to present your accounts in the best way possible.

Are there semi-commercial mortgage lenders?

Semi-commercial mortgages are usually offered by business mortgage lenders rather than residential home loan providers.

To find out whether the property you’re hoping to buy qualifies as semi-commercial, check out our guide to semi-commercial mortgages.

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Commercial mortgage lenders list

Commercial mortgage rates can fluctuate and change over time, making it difficult to pinpoint the exact amount you will pay if you are accepted by a specific lender.

This can be frustrating, especially if you don’t have access to the rates in real time.

The brokers we work with have this information and can update you as and when you need to know, as well as how the change of rates could affect you financially overtime.

Here are just a handful of the additional commercial mortgage lenders that the advisors we work with recommend. If you would like to know about a specific lender and their rates, contact an advisor.

  • Nationwide commercial mortgage
  • TSB commercial mortgage
  • Lloyds commercial mortgage
  • Metro bank commercial mortgage
  • Danske bank commercial mortgage
  • Kent reliance commercial mortgage
  • Fleet commercial mortgage
  • Virgin commercial mortgage
  • Prudential commercial mortgage
  • Royal bank of Scotland commercial mortgage
  • Woolwich commercial mortgage

Application tips for commercial mortgages

  • Don’t make too many applications in a short space of time! Signs that you have been frantically applying for loans can cause a lender to become cautious and less likely to lend to you.
  • Get trustworthy and reliable advice from a professional.
  • Get your accounts in order and have them completed by a registered accountant
  • Fill out an Asset and Liability form to evidence your company’s net worth ahead of the application.

Unsure which business mortgage lender to choose? Speak to a broker first!

If you have questions about how to find the top UK commercial mortgage rates and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

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We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in Commercial Mortgages
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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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