Commercial mortgages are designed for businesses or investors purchasing property for commercial use from office buildings and warehouses to mixed-use developments. Similar to residential mortgages, they’re secured against the property, but the lending assessment is based on business performance, projected income, and property value.

Whether you’re buying your first premises, expanding your operations, or developing a new site, we’ll help you find a funding solution that fits your goals. We work with a range of lenders offering flexible terms for both owner-occupiers and investors, ensuring your finance is structured around your business needs.

What a Commercial Mortgage Can Be Used For

A commercial mortgage can serve a variety of purposes beyond simple property purchase. They can be used to:

• Purchase business premises (shops, offices, warehouses, etc.)

• Refinance existing commercial property for better terms

• Fund property expansion or improvement projects

• Acquire investment property with rental income potential

• Purchase or refinance land or development plots

The structure of a commercial mortgage varies depending on the borrower’s circumstances and the nature of the property. Typical terms range from 3 to 25 years, with repayment or interest-only options available.

Lenders assess applications based on:

• Business trading history and profit performance

• Deposit size (usually 25%–40%)

• Type, value and location of the property

• Experience of the applicant or development team

• Strength of the proposed business plan or investment case

Because no two commercial projects are the same, we tailor advice to each client’s specific goals, whether that’s securing a long-term home for your business or funding a development opportunity.

Semi-Commercial Mortgages

Semi-commercial mortgages are designed for properties that contain both residential and commercial elements for example, a shop with flats above, or a pub with landlord accommodation.

They’re a popular choice for investors and small business owners who want to generate rental income while operating part of the property themselves.

Typical examples include:

• High street shops with residential flats above

• Guest houses or B&Bs with owner’s accommodation

• Offices with part-residential use

• Mixed-use buildings converted for multiple tenants

Semi-commercial lending criteria are generally similar to standard commercial loans, but the residential element is also taken into account. Most lenders will:

• Require a deposit of 25%–35%

• Assess affordability based on both rental and business income

• Offer terms up to 25 years

Because the property straddles two sectors, specialist lenders are often required. We work with these lenders daily and can recommend suitable products based on your property’s mix and your income structure.

Land & Commercial Development Loans

For those purchasing land or funding a development project, tailored short- to medium-term finance is available. These loans are often structured as interest-only, with repayment made once the project is sold or refinanced.

They can be used for:

• New-build commercial units or mixed-use developments

• Residential conversions or extensions

• Refurbishment of existing premises

• Land purchases with or without planning permission

Key features:

• Typical term: 6 to 18 months (depending on project size)

• Interest often rolled up (no monthly payments)

• Funding released in stages linked to build progress

• Lending based on gross development value (GDV)

Development finance can be complex, and costs vary depending on project risk and size. Our role is to help you present a strong case to lenders, secure competitive terms, and ensure the funding schedule matches your project timeline.

Bridging Finance (At a Glance)

A bridging loan provides short-term funding to cover gaps between buying and selling, or while arranging long-term finance. They’re commonly used for property purchases at auction, refurbishment projects, or urgent transactions.

If you’re considering this option, please visit our [Bridging Loans page] for full details, including when bridging is suitable, typical terms, and how we manage the process from start to finish.

Why Use a Specialist Broker

Commercial and semi-commercial mortgages require a tailored approach, as lender criteria can vary widely depending on sector, property type and experience. Working with a broker ensures:

• Access to both high street and specialist lenders

• Expert packaging of your application

• Guidance on valuation, deposit and income requirements

• Support through complex underwriting processes

• Strategic advice if you plan to expand or refinance later

Whether you’re a business owner, investor or developer, we’ll help you secure the right structure and lender to support your plans with confidence.