Commercial mortgages

Commercial mortgages built around you

Whether you need to buy a new building or release equity from your existing one, a commercial mortgage could be the answer¹.

What is a commercial mortgage?

A commercial mortgage is a type of loan for businesses that want to borrow over £25,000. The mortgage is secured by a first legal charge on your business premises.

A commercial mortgage can be used for

Buying property

Investment finance

Property development

Refurbishing owner-occupied business premises

Buying motor vehicles, machinery and other equipment

Key features and benefits

A commercial mortgage that gives you greater flexibility.

Borrow over a longer time

Choose any repayment from 1 to 25 years.

Capital repayment holiday

Option to take an interest-only period², subject to status and application.

Flexible terms available

Choose a variable or fixed-rate mortgage. You can switch from a variable to a fixed rate.

Fixed interest rates

Fixed-rate mortgage available for 10 years.

All mortgages are subject to application and status.

How to apply for a commercial mortgage

To find out if you’re eligible for a commercial mortgage, you’ll need to provide

Three full years’ audited or certified accounts plus current management figures (if produced)

Two months’ bank statements

Assets and liabilities statement

Terms and fees

Apply for a business mortgage for amounts over £25,000

Fixed-rate terms from 1 to 10 years

Prepayment fees may apply if you repay all or part of your loan before the expiry of the agreed term

Lending fees and associated borrowing costs apply and can be added to the loan

For fixed-rate loans, if you decide to pay or cancel the fixed interest rate you may have to pay a breakage cost in addition to other fees such as prepayment fees

Any property used as security, which may include your home, may be repossessed if you do not keep up repayments on your mortgage.

Other funding options

Compare our business borrowing with borrowing offered by other lenders⁵. You can find out more about the government’s Bank Referral Scheme [PDF, 1.4MB], including eligibility information.