Commercial — pricing factors (UK)
What lenders weigh when pricing commercial cases — not live quotes. Use our calculators and speak to an FCA-authorised broker for firm-specific numbers.
Mortgage118 does not publish indicative rate bands. Lender pricing changes daily and depends on your profile.
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What lenders look at
These factors shape whether a commercial case is accepted and how it is priced. They are not a quote.
- Established business with trading history
- Strong business financials and cash flow
- Good credit history for business and directors
- Adequate security and personal guarantees
- Clear business plan and property strategy
- Commercial use classification
For indicative numbers, use our mortgage calculators and compare brokers who specialise in commercial.
What moves your rate up or down
These are the strongest factors lenders weigh when setting pricing.
- Longer loan terms (up to 25-30 years)
- Flexible repayment structures
- Higher loan amounts available
- Specialist commercial lenders
- Business cash flow considerations
Fee breakdown
Common charges to plan for alongside the headline rate.
Arrangement Fee
Commercial facility fee
1% - 2%
of loan amount
Valuation Fee
Commercial property valuation
£1,500 - £5,000
specialist surveyor
Legal Fees
Commercial conveyancing
£2,000 - £5,000
plus due diligence
Broker Fee
Commercial arrangement
0.5% - 1.5%
on completion
Rate FAQs
Quick answers to common pricing questions.
What's the difference between commercial and residential mortgage rates?+
Commercial mortgage rates are typically 1-3% higher than residential rates due to increased risk and complexity. Rates vary based on the property type, location, loan-to-value ratio, and business financials. Commercial lenders also consider the business's ability to service the debt.
Can I get a commercial mortgage for a property I plan to rent out?+
Yes, commercial mortgages are available for investment properties, though the criteria may be different from owner-occupied commercial properties. You'll need to demonstrate rental income potential and may need a larger deposit.
Can I get a commercial mortgage with adverse credit?+
Some specialist lenders may consider commercial mortgages for borrowers with minor credit issues, though the criteria may be stricter. You'll typically need a larger deposit and may face higher rates. Business credit history is also important.
What happens if my business performance changes?+
If your business performance changes significantly, you should inform your lender immediately. This may affect your mortgage terms or require additional documentation to demonstrate continued ability to service the debt.
Can I get a commercial mortgage for a mixed-use property?+
Yes, commercial mortgages are available for mixed-use properties, though the criteria may be more complex. You'll need to demonstrate that both the commercial and residential elements meet the lender's requirements.
Can I get a commercial mortgage for a property that needs renovation?+
Yes, though renovation projects may require higher deposits and more detailed planning. You'll need to demonstrate that the renovation will improve the property's value and that you have the expertise to complete the project.