Retail — pricing factors (UK)
What lenders weigh when pricing retail 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 retail case is accepted and how it is priced. They are not a quote.
- Retail business experience
- Strong financial position and track record
- Professional team and management structure
- Adequate working capital and reserves
- Understanding of retail market conditions
- Suitable property for retail use
For indicative numbers, use our mortgage calculators and compare brokers who specialise in retail.
What moves your rate up or down
These are the strongest factors lenders weigh when setting pricing.
- Specialist lenders with retail expertise
- Footfall and tenant quality assessment
- Flexible lending criteria for retail properties
- Professional support for retail businesses
- Access to prime retail locations
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 experience do I need to operate a retail property?+
Most lenders prefer borrowers with previous retail operational experience, though some may consider applications from those with relevant business backgrounds and strong management teams.
Are retail mortgage rates higher than standard rates?+
Yes, retail mortgage rates are typically 2-3% higher than standard rates due to the increased risk and operational complexity. Rates may vary based on your experience and the property's performance record.
Can I get retail finance for a new build property?+
Yes, though new build retail properties may require higher deposits and more detailed planning. You'll need to demonstrate that the property meets all regulatory requirements and has appropriate facilities for retail operations.
What happens if footfall decreases?+
Lenders expect some variation in footfall and typically require you to demonstrate sufficient reserves to cover mortgage payments during difficult periods. Some lenders may require 6 months' payments in reserve.
Can I get retail finance for a mixed-use property?+
Some lenders will consider mixed-use properties with retail elements, though the criteria may be more complex. You'll need to demonstrate that the retail portion meets all requirements and generates sufficient income.
How is retail income assessed for mortgage applications?+
Lenders typically assess income based on footfall, rental income, occupancy rates, and operational costs. They'll want to see evidence of stable occupancy and realistic revenue projections based on local market conditions.