In brief: Lenders on our panel lend on commercial property up to 70 to 75% of value, and up to 80% for some businesses buying their own premises. As at 2 November 2026, the cheapest 5-year commercial fix at 75% LTV is 7.89% with a 1% fee, 8.17% a year on true cost. A shop with flats above is usually cheaper as semi-commercial.
Two kinds of commercial mortgage
How commercial lenders stress test
Every commercial lender asks the same question: if rates rise, can the income still pay the loan? How they test it depends on where the income comes from.
| Owner-occupied | Investment (let) | |
|---|---|---|
| Income tested | Business profits (EBITDA, with add-backs) | Rent from the tenants |
| Test | Debt service cover: profits cover the yearly capital and interest, typically 1.25–1.5 times | Interest cover: rent covers the interest, typically 125–150%, higher for weaker tenants |
| Stress rate | The pay rate plus a margin, or a floor rate, whichever is higher | The pay rate plus a margin, or a floor rate; longer fixes are often tested nearer the pay rate |
| Existing debt | Other business loans, leases and finance count against the profits | Usually just this loan |
| Max LTV | Up to 80% for strong, profitable businesses | Up to 75% |
Because many commercial loans are on capital repayment over 15–25 years, the test often covers the capital as well as the interest. That's why a commercial loan can be limited by the income even at a modest LTV.
Commercial mortgage rates: what sets them
Commercial mortgage rates are priced case by case. A strong owner-occupied deal at 50–60% LTV can price close to the best buy-to-let rates. A vacant, specialist or heavily leveraged property costs noticeably more. The main factors are:
- Loan to value: most lenders go to 70–75%, and up to 80% for profitable owner-occupiers. The lower the LTV, the better the rate.
- Property type: offices, retail, industrial, leisure, or specialist uses such as care homes and hotels.
- Income: the trading accounts for owner-occupiers, or the tenant's covenant and lease length for investment property.
- Borrower: experience, credit history and other assets.
- Fixed or variable: many commercial loans track Bank Rate plus a margin, and fixes of 2–10 years are widely available.
A shop with a flat above?
Where more than half the value is residential, such as a shop with flats above, it is usually financed as a semi-commercial mortgage, with its own lenders and rates. See semi-commercial mortgages for live rates and a calculator. This page covers property that is wholly or mainly commercial.
Why use a commercial mortgage broker?
Commercial lending isn't priced on a public rate table. Lenders set terms deal by deal, and many specialist lenders only work through brokers. We know which lenders take which property types and how each one stress tests the income, and we package the case so it's credit-ready. That usually means a better rate or a bigger loan than approaching a bank directly. You can also browse live products on our sourcing tool.
Quick answers
What is a typical commercial mortgage rate?
On our panel as at 23 October 2026: commercial property from 6.29%, typically around 7.64%. So a 6% commercial rate is a good one today. Commercial loans are priced case by case.
| Deal | Lowest rate | Cheapest overall | True cost* | Rent per £100k** |
|---|---|---|---|---|
| 2-year fix75% LTV | 6.99%5% fee | 8.09%1% fee | 8.67% | £843 |
| 5-year fix75% LTV | 7.49%3% fee | 7.89%1% fee | 8.17% | £822 |
*True cost: yearly cost over the fixed period with the fee added, on a £200,000 loan at 75% LTV. The lowest rate often carries a big fee; the cheapest overall is the one we'd look at first. **Monthly rent needed per £100,000 borrowed for the cheapest overall deal at 125% cover (limited company or basic-rate; higher-rate taxpayers are usually tested at 145%). Rates as at 23 October 2026, from lenders' guides; they change often and can be withdrawn without notice. Every case is subject to the lender's underwriting.
How much is a £200,000 commercial mortgage a month?
| Rate | Interest only | 15 years | 20 years | 25 years |
|---|---|---|---|---|
| 5% | £833 | £1,582 | £1,320 | £1,169 |
| 6% | £1,000 | £1,688 | £1,433 | £1,289 |
| 7% | £1,167 | £1,798 | £1,551 | £1,414 |
| 8% | £1,333 | £1,911 | £1,673 | £1,544 |
Monthly payments on £200,000, before fees. Repayment columns are capital and interest over the term shown.
Commercial mortgage payments by loan size
| Loan | Interest only | 15 years | 20 years |
|---|---|---|---|
| £100,000 | £583 | £899 | £775 |
| £250,000 | £1,458 | £2,247 | £1,938 |
| £500,000 | £2,917 | £4,494 | £3,876 |
| £1,000,000 | £5,833 | £8,988 | £7,753 |
Monthly payments at 7%, before fees. Put your own loan, rate and term into the calculator at the top of this page.
Can you get a 90% or 100% commercial mortgage?
Not on the property alone: most lenders stop at 70–75%, or 80% for profitable owner-occupiers. Offering additional security, such as a charge over another property, can cover the rest of the price, case by case and subject to underwriting.
Can I live in a property owned by my business?
Yes, but the home part needs the right loan: a flat above your shop is usually semi-commercial, and a company-owned house you live in needs a lender that accepts it. There can be tax charges, so take tax advice first.
Frequently asked questions
Can you get a mortgage on a business property?
Yes. A commercial mortgage can buy or refinance shops, offices, industrial units, mixed-use and other business property, either for your own business to trade from (owner-occupied) or to let to business tenants (investment). Lenders look at the business profits or the rent, not your personal salary.
What is a typical commercial mortgage rate?
On our panel as at 23 October 2026, commercial mortgage rates start from 6.29% with a typical rate around 7.64%. For a shop with a flat above, see our semi-commercial mortgages page. Your rate depends on the LTV, the property, the income and your experience.
Is 6% a high or low commercial mortgage rate in the UK?
6% is a good commercial mortgage rate today. It is below the lowest pure commercial rate on our panel (6.29% as at 23 October 2026), so it usually needs a strong case: low LTV, good trading or a strong tenant.
How much is a £200,000 commercial mortgage a month?
At 7% it is about £1,167 a month interest only, £1,551 a month on repayment over 20 years, or £1,414 over 25 years. At 6% repayment over 20 years it is about £1,433. Fees and the actual rate change the figure, so use the calculator above for your own numbers.
Can you get a 90% or 100% commercial mortgage?
Not on the property alone. Most lenders go to 70 to 75%, and up to 80% for profitable owner-occupiers. You can borrow more of the purchase price by offering additional security, such as a charge over another property you own, so the total lending stays within the lender's limits. That is case by case and subject to underwriting.
How difficult is it to get a commercial mortgage?
It is harder than a buy-to-let, because each case is underwritten individually. Lenders want a 25 to 30% deposit, income that covers the loan with room to spare (profits for owner-occupiers, rent for investors), and a clear picture of the borrower. A well-packaged case with accounts, a business plan or leases ready gets a faster, better answer.
Can I live in a property owned by my business?
Yes, but a commercial mortgage is not the right loan for the part you live in. A flat above your shop is usually financed as semi-commercial, and a house owned by your company and lived in by you needs a lender that accepts it, case by case. There can be tax charges for living in a company-owned home, so take tax advice first.
What is a typical LTV for commercial property?
Most commercial lenders go to 70 to 75% LTV. Profitable businesses buying their own premises can reach 80%, and the highest on our panel for commercial investment is 77.5%. The best rates usually start at 60% LTV or below.
Can you get a 50% LTV mortgage?
Yes. Any lender will lend at 50% LTV, and it is where the best pricing is: lower risk for the lender means lower rates and more lenders to choose from, especially for commercial property, case by case.
What are commercial mortgage rates in the UK?
They're priced individually. Strong owner-occupied or well-let investment cases at modest LTVs get the keenest rates, while higher LTVs, vacant or specialist property cost more.
How much deposit do I need for a commercial or business mortgage?
Usually 25–30%. A profitable business buying its own premises can borrow up to 80%, so 20% down, and additional security can sometimes reduce the deposit further.
How do commercial lenders stress test?
Owner-occupiers are tested on business profits covering the yearly capital and interest, typically 1.25–1.5 times. Investment property is tested on the rent covering the interest, typically 125–150%, at a stressed rate.
Can I get a commercial mortgage for a new business?
It's harder, but possible with a strong deposit, relevant experience, a solid business plan or additional security. Specialist lenders are often more flexible than high-street banks.
How long is a commercial mortgage term?
Typically 3 to 25 years, and some lenders go to 30. Interest-only periods are more common on investment property.
Is a commercial mortgage regulated?
Usually not. It becomes regulated if you or a close family member will live in 40% or more of the property.