Reviewed 30 September 2026. General information, not advice.
What is a commercial mortgage?
A commercial mortgage is borrowing secured on a commercial property. It may fund premises that your business occupies or property held as an investment. Products, underwriting and costs can differ between those uses.
The lender considers the property, the deposit or equity, and the income available to support repayments. There is no universal deposit requirement.
Plan for more than the deposit
Budget for valuation fees, legal work, arrangement fees, any broker fee and applicable taxes. Property repairs, insurance, business rates and fit-out costs may also affect what is manageable.
A deposit reduces the amount borrowed but uses cash that might otherwise support the business. Consider the overall cash position after completion.
Repayment, interest-only and variable rates
A capital repayment mortgage pays down the balance through regular instalments. With interest-only borrowing, the capital remains due at the end and needs a credible repayment plan.
Fixed and variable rates have different risks. Check the length of any fixed period, the rate afterwards, review dates, early repayment charges and whether a final balance remains.
Use the calculator as a starting point
Our commercial mortgage calculator models a capital repayment loan at a fixed annual interest rate. It does not assess the property, available products or your eligibility.
Speak to a suitably qualified adviser or lender about your circumstances and have the legal documents reviewed before committing.
A few common questions
How much deposit will I need?
It depends on the lender, the property, its use and your finances. A calculator illustration is not evidence that a particular loan-to-value will be available.
Does the calculator include buying costs?
You can include an upfront finance fee, but the model does not estimate taxes, legal costs, surveys, insurance or other property costs.
British Business Bank: finance options for smaller businesses
Eligibility and product terms change. Confirm the current details with the provider before making a decision.