Commercial Mortgages

Loan provided by a lender to a borrower that is secured by a legal charge over commercial property

What is a commercial mortgage?

A commercial mortgage is a type of loan provided by a lender to a borrower that is secured by a legal charge over commercial property. Mortgages are attractive products which can be used to achieve a wide range of objectives such as contributing towards the purchase of commercial property, releasing equity to grow or invest in your business, refinancing to benefit from a lower interest rate or monthly repayments and consolidating existing debts into one manageable monthly payment.

The different types of commercial mortgages

  • Owner-Occupied Commercial Mortgage
  • Commercial Investment Property Mortgage
  • Property Portfolio Loan

Owner-occupied commercial mortgages

They are provided to property owners who are investors and receive a rental income from a third party tenant or licensee. In most scenarios the rental income the property generates is used to repay the debt over a period of time.

Property portfolio loans

They are provided to property professionals and investors. The lender will take some or all of the clients property investments as security (this may be residential, commercial or mixed use property, or a combination of all within the portfolio) and provide one loan, assessing serviceability by aggregating the total income from the portfolio to meet the proposed loan repayments.


The six key areas lenders examine:

  • Personal and business credit history
  • Experience and background of the borrowers and/or the key people involved in the business (such as the management team)
  • The type of property/business you wish to purchase or refinance
  • The proposed loan-to-value (LTV)
  • Affordability: can the property/business afford to repay the borrowing it has requested?
  • Sustainability: is the income source to repay the loan sustainable for the full duration of the proposed loan(s) facility

Interest rates and other costs involved

  • Interest rates and deal costs vary among lenders, starting around 2% with large banks and going up to about 12% with high-risk niche lenders.
  • A broker is essential to find competitive solutions by approaching a wide range of lenders.
  • Pricing depends on a lender’s perceived risk; lower risk leads to lower interest rates.
  • The Multiply Finance team helps structure and present applications for favorable terms.
  • Consider associated costs when comparing commercial mortgages, including arrangement, valuation, and legal fees.
  • Additional fees may apply, such as exit, commitment, and monitoring fees.

When are commercial mortgages used?

  • Commercial mortgages are used for residential and commercial property or trading business acquisitions or refinancing.
  • They are often cost-effective because they are secured by a legal charge on the property.
  • Loan amounts typically start at £50,000, with lender maximums ranging from £3m to £50m.
  • Commercial mortgages have a medium to long-term repayment period, usually lasting from three to 25 years.
  • Most lenders require a 25% minimum deposit, but 100% financing can be possible with additional security and affordability checks.

Click below to begin the process of applying for a commercial mortgage

The types of finance we can offer

We can offer a wide range of funding options that include the following:

Business Loans

Let us help source the right business loans for you

Commercial Mortgages

Funding for commercial mortgages and buy-to-let purchases

Property Development

A range of development finance options catered to your specific needs

Bridging Finance

Funding for that urgent purchase or refinance when time is tight

Residential Mortgages

For individuals who wish to purchase their own home

Invoice Finance

Keep cash flow moving and get paid quicker for your products and services

Portfolio Landlord

For individuals or investors who own a portfolio of properties

Asset Finance

Sourcing the equipment you need without disrupting your cash flow

Buy-To-Let Mortgages

For individuals or investors who wish to purchase residential property to let

Multiply Finance Ltd is a member of the National Association of Commercial Finance Brokers.

Multiply Finance Ltd is a member of the Federation of Small Businesses.

Get In Touch

Our finance experts are on hand to take your call, email or respond to your message.

Multiply Finance Limited,
Censeo House,
6 St Peter's Street,
St. Albans,


Multiply Finance Limited trading as Multiply Finance is an Appointed Representative of Connect IFA Limited 441505 which is Authorised and Regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 929261. The FCA do not regulate some forms of Business Buy to Let Mortgages and Commercial Mortgages to Limited Companies. The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. Your property may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice, the precise amount will depend upon your circumstances.

Multiply Finance Limited Registered Address: Egale 1 80 St Albans Road, Watford, Herts, England, WD17 1DL Registered in England and Wales No: 12561172

Not all services we offer are covered by the FCA. Click here to read our Privacy Policy statement.

Commission disclosure: We are a credit broker and not a lender. We have access to an extensive range of lenders. Once we have assessed your needs, we will recommend a lender(s) that provides suitable products to meet your personal circumstances and requirements, though you are not obliged to take our advice or recommendation. Whichever lender we introduce you to, we will typically receive commission from them after completion of the transaction. The amount of commission we receive will normally be a fixed percentage of the amount you borrow from the lender. Commission paid to us may vary in amount depending on the lender and product. The lenders we work with pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.

How to make a complaint - It is our intention to provide you with a high level of customer service at all times. If there is an occasion when we do not meet these standards and you wish to register a complaint, please write to: Compliance Department; Connect IFA Ltd, 39 Station Lane, Hornchurch, RM12 6JL or call: 01708 676110. If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.