Commercial Mortgage Broker UK
| TMD Specialist Finance
Expert commercial mortgage advice for business owners, property investors and landlords across the UK
Commercial Lending Made Simple.
WHAT IS COMMERCIAL MORTGAGE?
A commercial mortgage is a loan secured against a commercial or semi-commercial property. Unlike a residential mortgage, which is used to buy a home, a commercial mortgage is used to purchase or refinance property that is used for business purposes, let to tenants on a commercial basis, or a combination of both.
Commercial mortgages are used by a wide range of borrowers. Business owners buying their own trading premises. Property investors purchasing commercial units as an investment. Landlords buying mixed-use buildings with residential flats above commercial units. Developers refinancing onto a long-term product after completing a project. The common thread is that the property has a commercial element and requires specialist lending that sits outside the standard residential mortgage market.
Commercial mortgages are not regulated by the Financial Conduct Authority in the same way as residential mortgages. This gives lenders more flexibility on criteria, terms, and structure, but it also means the market is more complex and the importance of using an experienced broker is significantly higher.
TMD Specialist Finance arranges commercial mortgages for clients across the UK. We have access to over 200 specialist lenders including high street banks, challenger banks, specialist commercial lenders, and private banks. We know which lenders are most competitive for your property type, your borrower profile, and your deal structure.
TYPES OF COMMERCIAL MORTGAGE WE ARRANGE
Owner-Occupied Commercial Mortgages
If you are a business owner looking to purchase the premises your business trades from, an owner-occupied commercial mortgage is typically your most cost-effective borrowing option. Rates are generally lower than for investment commercial mortgages because lenders treat the owner's investment in the business as additional security. Buying your own premises also protects you from rising rents, gives you an asset that builds equity over time, and can be held within a pension structure such as a SIPP or SSAS in many cases.
We arrange owner-occupied commercial mortgages for sole traders, partnerships, limited companies, and pension fund trustees across a wide range of property types including offices, retail units, industrial premises, warehouses, pubs and licensed premises, and more.
Commercial Investment Mortgages
If you are purchasing commercial property as an investment and letting it to tenants, a commercial investment mortgage is assessed primarily on the rental income the property generates rather than your personal income. Lenders look at the debt service cover ratio, which is the relationship between the rental income and the mortgage payment, and typically require income to cover between 125 and 150 percent of the interest payment at a stressed rate.
We arrange commercial investment mortgages for individual investors, limited companies, and portfolio investors across all commercial property sectors.
Semi-Commercial Mortgages
Semi-commercial properties, sometimes called mixed-use properties, have both residential and commercial elements. A flat above a shop is the most common example, but the category also includes retail or office units with residential above, pubs with accommodation, and care homes with ancillary facilities.
Lenders treat semi-commercial properties differently depending on the proportion of the building that is residential versus commercial, and property type plays a larger role than geography when it comes to pricing and criteria. We know which lenders are most comfortable with specific mixed-use configurations and can structure your application accordingly.
Refinancing and Remortgaging Commercial Property
If your existing commercial mortgage deal is coming to an end, if you want to release equity from a commercial property, or if you are looking to improve your rate or terms, we can compare the full market and find the most cost-effective refinancing solution. We also arrange day one remortgages for investors who need to refinance immediately after purchase or completion of a development.
COMMERCIAL MORTGAGE RATES IN 2026
Commercial mortgage rates are more complex than residential rates and vary significantly depending on the lender, the property type, the LTV, the borrower's credit profile, and the strength of the business case.
As of early 2026, the Bank of England base rate sits at 4.50%, having come down from its peak of 5.25% in late 2023. Current indicative commercial mortgage rates across the market are broadly as follows: high street banks sit at 5.75 to 7.50 percent, challenger banks at 6.50 to 8.50 percent, specialist lenders at 7.50 to 10.00 percent, and private banks at 5.50 to 7.00 percent for high net worth clients.
Prime borrowers with strong financials and larger deposits may access deals starting from roughly 4.5 to 6 percent, especially for owner-occupied business premises.
Beyond the headline interest rate, commercial mortgages typically involve arrangement fees of 1 to 2 percent of the loan amount, valuation fees which vary by property size and complexity, and legal costs for both borrower and lender. We provide a full cost breakdown before you commit to anything so you understand the true cost of borrowing, not just the headline rate.
Key factors that affect your commercial mortgage rate include your LTV (most lenders cap at 70 to 75 percent for commercial property), the property type and its marketability, your credit history and that of your business, the strength of rental income or business turnover, the loan size, and the term you require.
COMMERCIAL MORTGAGE CRITERIA
Loan to Value
The maximum LTV for commercial mortgages is typically 70 percent across the UK, meaning you will need a minimum deposit of 30 percent of the property value. Some lenders will consider up to 75 percent for strong cases, particularly for owner-occupied premises or well-tenanted investment properties. For semi-commercial and mixed-use properties LTV limits vary depending on the ratio of commercial to residential use.
Debt Service Cover Ratio
For commercial investment mortgages, lenders assess affordability using a debt service cover ratio rather than an income multiple. Most lenders require rental income to cover at least 125 to 150 percent of the mortgage payment at a stressed rate. We calculate DSCR from the outset of every commercial investment application so we know which lenders your property will satisfy before we apply.
Property Types
Standard commercial lenders are comfortable with retail units, offices, industrial units, warehouses, and straightforward mixed-use buildings. More specialist lenders are needed for pubs and licensed premises, hotels and guest houses, care homes and healthcare facilities, petrol stations, marinas, and other specialist commercial assets. We have lenders for all of these across our panel.
Borrower Structure
Commercial mortgages are available to individuals, partnerships, limited companies, LLPs, SPVs, pension funds (SIPP and SSAS), charities, and offshore entities in some cases. Each structure has lenders who are most comfortable with it. We match your borrower structure to the most appropriate lenders from the start.
WHY USE TMD SPECIALIST FINANCE FOR YOUR COMMERCIAL MORTGAGE?
The commercial mortgage market is opaque. Rates are not published in the same way as residential mortgages. Many of the best lenders only accept applications through approved brokers. The difference between a well-structured and a poorly-structured application can be the difference between approval and decline and between a rate of 6 percent and 8 percent on the same property.
We have been arranging commercial and specialist finance since 2017 as part of The Mortgage Dog group, with over £207 million in lending arranged for clients across the UK. We understand how commercial lenders assess deals, how to present applications in the strongest possible light, and which lenders are most likely to say yes based on your specific property, borrower profile, and deal structure.
We are whole-of-market with access to over 200 lenders including many who do not advertise directly and only accept business through trusted brokers. We are FCA regulated. And we act in your interests, not the lender's.
For other commercial finance products visit our Commercial Finance page. For bridging finance visit our Bridging Finance page. For residential mortgages visit our sister site The Mortgage Dog.
How Our Commercial Mortgage Process Works
We’ve made commercial finance simple, transparent and stress-free
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Step 1. Tell Us About Your Deal
Call us, email us, or complete our online enquiry form. Tell us about the property, the loan amount you need, your borrower structure, your timescale, and as much detail as you can about the business or investment. The more we know upfront, the faster we can move.
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Step 2. We Structure and Search the Market
We assess your case, identify the most appropriate lender approach for your property and profile, and compare deals across our full panel. We present you with clear options and a recommendation that explains the true cost of each deal including all fees.
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Step 3. We Package and Submit
We prepare and submit your application in the format that gives it the best possible chance. We manage the relationship with the lender, valuer, and solicitors throughout and keep you updated at every stage.
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Step 4. Funds Released
Once all conditions are met and legal work is complete, funds are released and your transaction completes.
Frequently Asked Questions
How much can I borrow on a commercial mortgage?
Commercial mortgage loan sizes typically start from £100,000 with no upper limit for the right deal and the right borrower. Most lenders will advance up to 70 percent of the commercial property value, meaning you will need a minimum deposit of 30 percent. For larger loans or more complex properties, terms vary significantly across lenders and we will identify the most appropriate options for your specific case.
How long does a commercial mortgage take to arrange?
Standard commercial mortgages typically take four to eight weeks from application to completion, though complex transactions can take longer. The main variables are valuation timescales, legal work, and how quickly the borrower can provide the required documentation. We work with lenders and solicitors who understand commercial timescales and can move efficiently.
Can I get a commercial mortgage through a limited company?
Yes, and for investment commercial property it is often the preferred structure. Limited company commercial mortgages give more flexibility on ownership structure, can be more tax-efficient depending on your circumstances, and sit outside FCA regulation which means lenders have more flexibility on criteria. We regularly arrange commercial mortgages for SPVs, trading companies, holding companies, and pension fund trustees.
Can I get a commercial mortgage with adverse credit?
Yes in many cases. Commercial lenders are more focused on the quality of the security, the strength of the business case, and the viability of the exit or repayment strategy than on personal credit history alone. Missed payments, defaults, and even previous CCJs can be accommodated by specialist lenders where the deal fundamentals are strong. We will assess your situation honestly and tell you quickly which lenders are most likely to consider your application.
What is the difference between an owner-occupied and an investment commercial mortgage?
An owner-occupied commercial mortgage is for a business buying the premises it trades from. Affordability is assessed on the business's ability to service the debt from trading income. An investment commercial mortgage is for a property being purchased to let to tenants. Affordability is assessed on the rental income the property generates relative to the mortgage payment. Rates and criteria differ between the two products and not all lenders offer both.
Can I get a commercial mortgage on a pub or licensed premises?
Yes, though pubs and licensed premises are considered specialist and require lenders who understand the sector. We have lenders who are experienced with pubs, restaurants, hotels, and other licensed premises and understand how to value and assess this type of security.
What is a debt service cover ratio and why does it matter?
A debt service cover ratio, or DSCR, is the relationship between the rental income a property generates and the mortgage payment it needs to service. Most commercial investment lenders require a DSCR of at least 1.25 to 1.50, meaning the rental income must be 25 to 50 percent higher than the mortgage payment at a stressed interest rate. Understanding DSCR early helps us identify which lenders your property will satisfy and avoids wasted applications.
Speak to a Specialist Today
Ready to Discuss Your Commercial Finance Requirement?
Get in touch today for a free, no-obligation conversation. We will tell you quickly and honestly what is possible, what it will cost, and how we can structure the right solution for your deal.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances.
TMD Specialist Finance is a trading name of The Mortgage Dog Commercial Ltd. The Mortgage Dog Commercial Ltd (FCA Number 1047575) is an Appointed Representative of Connect Mortgages, which is authorised and regulated by the Financial Conduct Authority. The Mortgage Dog Commercial Ltd. is registered in England and Wales under company number 16845257 at the registered address 41a Spout Lane, Washington, NE38 7HP. Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority
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