How Do Commercial Mortgages Work?
A commercial mortgage lets you purchase or refinance a business property with a long-term loan secured against the premises. Like a residential mortgage, you make regular repayments over an agreed term, but the criteria, rates, and structures are tailored to commercial use.
As a credit broker, not a lender, Balanced Funding Solutions searches across our panel of commercial mortgage lenders to find the most competitive terms. Whether you are buying your first business premises or expanding a property portfolio, we handle the search and paperwork.
“Commercial mortgages are more nuanced than residential ones. The lender considers the business, the property, the tenant profile, and the sector. Having a broker who understands the market means you get matched to the right lender from the start, saving time and avoiding unnecessary declines.”
Types of Commercial Mortgage
Commercial mortgages come in several forms depending on whether you are occupying the property yourself or investing in it. The right option depends on your business structure and goals.
Purchase or refinance premises that your own business occupies. Assessed primarily on business turnover and affordability. Typically offers better rates than investment mortgages.
Finance for commercial properties let to tenants. Assessed on rental income as well as the borrower's financial position. Suitable for single units or portfolios.
Properties combining commercial and residential elements — such as a shop with a flat above. Some lenders treat these as commercial, others as residential, depending on the split.
Refinance an existing commercial mortgage to secure a better rate, release equity, or consolidate borrowing. Can apply to owner-occupied or investment properties.
Quick Comparison
A side-by-side look at how the main options compare on the factors that matter most.
| Feature | Owner-Occupied | Investment | Semi-Commercial | Remortgage |
|---|---|---|---|---|
| Assessed on | Business affordability | Rental income | Both | Existing performance |
| Typical LTV | Up to 75-80% | Up to 70-75% | Up to 75% | Up to 75% |
| Typical term | 5-25 years | 5-25 years | 5-25 years | 5-25 years |
| Deposit | 20-25% | 25-40% | 25-30% | Equity in property |
| Rate type | Fixed or variable | Fixed or variable | Fixed or variable | Fixed or variable |
| Best for | Business premises | Property investors | Shop with flat above | Better terms or equity release |
Owner-Occupied
Investment
Semi-Commercial
Remortgage
Who Can Apply?
Commercial mortgages are available to businesses and individuals. While each lender has its own criteria, the general requirements are:
- UK-registered business or UK-resident individual
- Property in England, Wales, or Scotland
- Minimum deposit of 20-40% (varies by lender and property type)
- Satisfactory business accounts (typically 2-3 years for owner-occupied)
- Viable rental income (for investment mortgages)
If your business is newer, the property is unusual, or you need a higher LTV ratio, speak to us. Our panel includes specialist lenders who consider non-standard applications.
“Many business owners pay rent for years without realising they could be building equity in their own premises for a similar monthly cost. A commercial mortgage is a long-term investment in your business.”
How It Works
Arranging a commercial mortgage through Balanced Funding Solutions is straightforward. Here is what to expect at each stage.
Get in Touch
Tell us how much you need and what the finance is for. Online form, phone, or email.
We Search
We compare options across our lender panel for your budget and credit profile.
Your Options
Full transparency on rates, terms, and fees — no obligation to proceed.
Completion
We handle the paperwork. Funds typically released within 24–48 hours.
Commercial Mortgage Calculator
Estimate your monthly repayment. Adjust the figures to match your requirements.
For illustration purposes only. This calculator provides an estimate based on the figures you enter. Your actual rate will depend on your individual circumstances, credit profile, and the lender’s criteria. Balanced Funding Solutions is a credit broker, not a lender.
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Frequently Asked Questions
Get Your Commercial Mortgage Quote Today
No obligation, no impact on your credit score. Tell us what you need and we will do the rest.