Commercial Mortgage

A Commercial Mortgage is a loan that’s secured against a commercial property. Our Commercial Mortgage product can be used to purchase new commercial premises for businesses to trade from, or to remortgage an existing loan that’s secured against an existing property, to raise finance for your business.

A standard homebuyer’s mortgage, the loan is given for and secured against a residential property.

A Commercial Mortgage is for a commercial property and is specifically intended for businesses.

If you’re a new business looking to purchase a commercial property you’re very welcome to apply. We’ll take into account your circumstances and credit rating, in the same way we do with all applications.

This will vary depending on the amount you wish to borrow, your business circumstances and our assessment of your credit situation. As a guideline 25% of the total value of the property is typically required for a Commercial Mortgage deposit.

Call us on 0345 711 4477 to discuss solutions tailored specifically to you.

Lines are open 9.00am – 5.30pm Monday to Friday (except public holidays). 

Buy-to-let mortgages are suitable if you have 10 or less properties which you act as a landlord for, and don’t intend to buy the property through a business entity.

Find out more about our Buy-to-let mortgage

No, you are not required to open or maintain a business current account with us in order to obtain or manage a business loan.

In some circumstances you will be required to open a fee-free loan servicing account.

A fee-free Loan Servicing Account is not a Business Current Account. This account will purely be used to facilitate your loan and will be free of any transaction charges.

You are able to switch your Business Current Account to another provider while retaining your business loan with us.

We may require you to open a fee free loan servicing account and will confirm if this is required as part of the switching process.

A fee-free Loan Servicing Account is not a Business Current Account. This account will purely be used to facilitate your loan and will be free of any transaction charges.

You are able to use another provider to manage your business banking while retaining your business loan with us.

• You could take a repayment holiday at the start of the loan or during a Family First event.
• You could choose to have a capital repayment holiday of up to 6 months for a Family First event, you’ll still need to pay the interest, and switch back to a full repayment after that.
• During any Capital Repayment Holiday where you take a break from paying off the principle of the loan, the interest must still be paid into a servicing account.
• Interest will accrue during any repayment holiday, so it may take longer to repay the loan and cost more in the long run.
• Capital Repayment Holidays are subject to credit approval and payments may increase afterwards.

Most commercial mortgages will be offered with a choice of fixed interest rate or a variable interest rate, sometimes referred to as a floating rate. Both rates can be beneficial for your business, depending on what your needs are and what your business values the most.

Find out more about understanding commercial mortgage rates