Commercial mortgage brokers support businesses and property investors when arranging finance for commercial property purchases. These properties may include offices, retail units, warehouses, mixed-use buildings, and buy-to-let portfolios.
Commercial mortgages operate differently from residential mortgages. The structure, terms, and lender assessment criteria are more complex and vary between lenders.
A commercial mortgage is a loan secured against a property used wholly or partly for business purposes. Businesses commonly use this type of funding to buy or refinance trading premises or commercial investment property.
Lenders assess commercial mortgage applications based on both the property and the financial position of the borrower. This may include business accounts, projected income, and trading history.
Commercial mortgages are often used for business growth, property investment, or long term refinancing. Interest rates are usually linked to risk, loan size, and loan to value. Lenders also consider the property type, intended use, income potential, and location when making a decision.
How Commercial Mortgage Brokers Support You
Commercial mortgage brokers review your business objectives and funding requirements. They collect key documents and identify lenders suited to your circumstances. This helps align your application with realistic lending options and affordable repayment terms.
Rather than approaching a single bank, brokers work with a broad panel of lenders. This includes high street banks, challenger lenders, and specialist commercial providers. Through Connect Experts, you can find a commercial mortgage broker with access to suitable lending routes for your business.
A broker structures your application correctly from the outset. This reduces delays and improves approval prospects. They also support you by presenting a clear business case to lenders, helping your application progress more efficiently.
Personal preference matters too. Some borrowers choose to work with advisers who speak their first language or share a similar cultural understanding. Connect Experts allows you to search for bilingual mortgage brokers and browse A-Z mortgage brokers, helping you find a second charge specialist who fits both your financial needs and personal preferences.
- Long-term Business Funding: Commercial mortgages offer long-term funding for business premises or investment property. Terms typically range from five to twenty-five years. A qualified commercial mortgage broker can help structure borrowing to suit your long-term plans.
- Access to Larger Loan Amounts: Commercial lending often allows higher borrowing than unsecured business finance. Loan size is based on property value, rental income, and overall business performance. Experienced commercial mortgage brokers assess lender criteria before recommending suitable options.
- Competitive Interest Rates: Because the loan is secured against property, interest rates can be more competitive than unsecured borrowing. Rates vary depending on risk, affordability, and lender appetite. Independent advice helps identify suitable products.
- Flexible Repayment Structures: Repayment terms can be tailored around your business cash flow and projected income. This flexibility is one reason many businesses use specialist advisers rather than applying directly to lenders.
- Long-term Asset Growth: Owning commercial property may support long-term capital growth. This can strengthen your business balance sheet and support future borrowing. Some borrowers also explore mixed-use funding through semi-commercial mortgage brokers.
- Refinancing and Capital Raising: If you already own commercial property, refinancing may help reduce monthly repayments or free up capital. This funding can support expansion or future investment plans. Businesses with wider mortgage needs may also wish to find a mortgage adviser for additional support.
Lenders assess several factors when reviewing a commercial mortgage application:
- Property value and type
- Projected rental income or trading performance
- Deposit available (typically 25%–40%)
- Business accounts, forecasts, and cash flow
- Credit profile of the applicant or directors
- Experience with similar properties or industries
Commercial mortgage brokers focus on arranging finance for business and investment property. They understand lender criteria and how commercial applications are assessed. Their experience helps present your case clearly and accurately.
Brokers also review multiple lending options. This helps you avoid unsuitable terms and unnecessary costs. Some commercial lenders only work with approved advisers, making broker access essential.
When choosing support, it is important to work with FCA-regulated professionals. You can use our commercial mortgage brokers directory to connect with advisers who have proven experience and strong lender access. Clients may also prefer working with local experts who understand regional markets or specialist sectors.
If language support is important, you can also find a mortgage adviser by language using our broker search tools, including specialists within our multilingual network.
Alternatives to Commercial Mortgages
While a commercial mortgage is suitable in many cases, other funding options may also be appropriate depending on your objectives.
Bridging loans are short term finance solutions. They are commonly used to secure property quickly or to fund improvements before refinancing onto a commercial mortgage.
Buy to let mortgages may be more suitable when purchasing residential property for rental purposes. In some cases, portfolio landlords may not require a commercial mortgage.
Development finance is designed for property construction or conversion projects. Funds are released in stages as each phase of the build is completed.
Asset finance and business loans can support equipment purchases or business cash flow. These options do not require property as security.
Commercial Mortgage Case Study
Client: An experienced property investor in Manchester
Loan Purpose: Purchase of a mixed-use building with retail on the ground floor and flats above
Loan Size: £850,000
Deposit: 30%
Income Source: Rental income from both commercial and residential units
The client approached a commercial mortgage broker due to a complex income structure. High-street lenders declined the application due to perceived risk.
The broker reviewed the client’s property portfolio and rental history. They submitted the application to a specialist lender who accepted projected rental income as part of the affordability assessment.
A loan was approved at a competitive fixed rate over 20 years. The property has since increased in value, and the rental income covers the monthly repayments with surplus profit.
This case highlights the benefits of working with a broker who understands how to structure complex applications and deal with specialist lenders.
Key Facts About Commercial Mortgages
- Commercial loans are regulated differently from residential mortgages.
- Most commercial mortgages require a deposit of 25% to 40%.
- Interest rates are based on risk, property type, and business strength.
- Terms range from 5 to 25 years, depending on the lender.
- Lenders will request financial documents, forecasts, and property details.
- The FCA only regulates commercial mortgages for certain types of borrowers (e.g., sole traders using premises personally).
Our Commercial Mortgage Brokers
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FAQ: Commercial Mortgage Brokers
| Question | Answer |
|---|---|
| What does a commercial mortgage broker do? | A commercial mortgage broker helps businesses and investors find suitable finance for purchasing or refinancing commercial property. They compare lenders, negotiate terms, and guide clients through the application process from start to finish. |
| How is a commercial mortgage different from a residential one? | A commercial mortgage is designed for properties used for business purposes, such as offices, warehouses, or retail units. The lending criteria, deposit requirements, and interest rates differ from residential mortgages because the property generates income or supports business operations. |
| Do I need a commercial mortgage broker? | Working with a commercial mortgage broker can save time and money. Brokers have access to lenders that are not always available to the public and can match your business profile with suitable funding options, often securing more competitive terms. |
| What documents will I need to apply for a commercial mortgage? | Typically, you will need business accounts, tax returns, bank statements, proof of identity, property details, and information about any existing loans or leases. A broker will guide you on the exact requirements for your situation. |
| How much deposit do I need for a commercial mortgage? | Most lenders require between 25% and 40% of the property’s value as a deposit. The amount depends on the business type, property use, and your overall financial position. |
| Can I get a commercial mortgage through a limited company? | Yes. Many commercial property investors purchase or refinance through a limited company. A broker can help you structure the loan appropriately and explain any tax implications involved. |
| How long does the commercial mortgage process take? | The process typically takes between four and eight weeks from application to completion. Factors such as valuation, legal work, and lender response times can affect the duration. |
| Can a commercial mortgage broker help with bad credit cases? | Yes. Some specialist lenders are open to applicants with adverse credit histories. A broker can assess your circumstances and approach lenders who consider your overall business performance rather than just credit score. |
| Are commercial mortgage brokers regulated? | Most commercial mortgages are not regulated by the Financial Conduct Authority, but reputable brokers still operate under FCA principles to ensure transparency and fair treatment. Always check your broker’s credentials before proceeding. |
| What types of property can I buy with a commercial mortgage? | Commercial mortgages can be used to buy or refinance offices, retail premises, warehouses, industrial units, restaurants, and mixed-use properties. Some lenders also fund semi-commercial buildings such as shops with flats above. |