If you are thinking of moving premises or expanding your business, a Commercial Mortgage can help you develop your business.
A commercial mortgage is a type of loan for businesses that want to borrow more than £25,000. If you get a business loan up to £25,000 it can be unsecured, but if you want to loan a larger amount, you need security to reduce the risk.
‘A business mortgage usually lasts from three to 25 years and you can usually find a 70-75% mortgage’, MoneySuperMarket explains. The percentage represents loan to value (LTV ratio), explaining how much you’re borrowing in relation to how much the property is worth.
Using the services of a wrong commercial mortgage lender can result in you losing money. We want to help you avoid that and here we take a look at some UK commercial mortgage lenders you should know.
- Barclays commercial mortgage
You can get commercial mortgages from Barclay with LTVs of up to 70%. Depending on your circumstances and the individual needs of each business this percentage can differ. If you use Barclays, you can choose any repayment from 1 to 25 years. You can also choose a variable or fixed-rate mortgage. Keep in mind that fixed-rate mortgages are available for 10 years.
Barclays offers a range of business mortgages that include:
- Commercial mortgages
- Agricultural mortgages
- Buy-to-let mortgages
- Buy-to-let mortgages for businesses.
Contact information
| Phone number for those with a Barclays Business account | 0333 202 7431 |
| Phone number for those new to Barclays Business | 0800 515 462 |
| Website | https://www.barclays.co.uk/business-banking/borrow/mortgages/ |
- HSBC commercial mortgages
Businesses can borrow up to 75% of the purchase price of the commercial property you intend to buy. If you choose HSBC as your commercial mortgage lender, there will be no maximum limit on commercial mortgages. Nevertheless, the amount you will be able to borrow and the interest rate you will have to pay vary depending on how well your business is performing.
Here are the main characteristics of commercial mortgage with HSBC:
- Minimum loan amount of £25,001
- No maximum loan amount
- Businesses able to borrow up to 75% of the purchase price or professional valuation
- Repayment period between 2 and 30 years
- Variable and Fixed rate
- Monthly or quarterly repayments.
Contact information
| Phone number | 0800 731 8908 |
| Website | https://www.business.hsbc.uk/en-gb/finance-and-borrowing/credit-and-lending/commercial-mortgage |
- Santander commercial mortgages
Santander helps businesses with purchasing and renovating commercial real estate by offering them competitive terms and rates for commercial mortgages. Here are the main benefits of choosing Santander as your commercial lender:
- 5 or 10 year fixed interest rates
- Ability to borrow up to 25 years with no large payment at the end of the loan
- A discount when you use direct debit from Santander Business Checking account for your mortgage payments.
- Ability to borrow up to 80% loan-to-value
- Flexible repayment terms.
Contact information
| Phone number | 0800 389 7777 |
| Website | https://www.santanderbank.com/business/borrowing/commercial-real-estate-mortgages |
- Nationwide commercial mortgage
Nationwide lends primarily to housing associations of all sizes. They have been lending to the social housing sector for over 50 years so they are experts in helping customers make the most of their money. If you want to prepare housing to rent and buy, Nationwide is the right lender for you.
Contact information
| New customers | commercial.deposits@nationwide.co.uk |
| Existing customers | BusSav.ops@nationwide.co.uk |
| Website | https://www.nationwidecommercial.co.uk/lending |
- TSB commercial mortgage
Here are the features and benefits of commercial mortgages from TSB:
- Mortgages starting from £25,001
- Loan term of up to 25 years
- Ability to lend up to 70% of the value property
- Fixed rate and flexible rate mortgages
- Security fees applicable
- Break cost may be applied in case of early loan repayment.
When you are getting in touch with TSB to find out more and get a commercial loan make sure to tell them how much you would like to borrow, what is the purpose of the loan, how many months would you like to make the repayments over.
Contact information
| Phone number | 0345 835 3858 |
| Website | https://www.tsb.co.uk/business/loans-and-finance/commercial-mortgage/ |
- Fleet Commercial Finance
Fleet Commercial Finance was established in 1992. In addition to helping businesses get commercial mortgages, the company offers advice on business finances. Fleet Commercial Finance works directly with clients and lenders to make sure commercial mortgages they offer to customers come with the best terms.
If you choose Fleet Commercial Finance as your commercial lender, you will receive personal service and the best possible commercial property mortgage to suit your individual mortgage requirements.
Fleet Commercial Finance offers loans up to 100% of the purchase price for commercial property mortgages for professional practices. If you are looking for a commercial mortgage for Freehold Offices, Factories and Warehouses for owner occupiers, or for Investment purposes, Fleet Commercial Finance can offer you loan of up to 75% of the purchase price.
Contact information
| Phone number | 01322 558089 |
| Email address | kevin@fleet-finance.co.uk |
| Website | https://www.fleet-finance.co.uk/about-us/ |
- Metro Bank
Metro Bank specialises in business and commercial loans. If you choose their services, you will be able to get a mortgage that matches the needs of your business. For business loans under £25,000, the annual interest rate that Metro Bank offers is 9.6% APR. It is a fixed rate. For loans over £25,000, the interest rate is tailored to each loan based on the needs and performance of each lender. Commercial loan term in Metro Bank is 1-5 years.
Contact information
| Phone number | 88 700 700 |
| Website | https://www.metrobankonline.co.uk/business/borrowing/products/commercial-loans/ |
- Virgin Money
Virgin Money works with businesses that are looking to:
- Buy premises
- Move to new premises
- Remortgage to Virgin Money
- Purchase a buy-to-let property
- Remortgage their buy-to-let property.
The company is committed to helping customers reduce their impact on the environment so it also offers ‘greener mortgages. If you buy an energy efficient property, you will receive a lower rate for your mortgage. That is supposed to encourage Virgin Money’s clients to be more environmentally friendly.
Virgin’s Money mortgages are available up to 95% LTV and customers can make overpayments of up to 10% per year without having to worry about an early repayment charge.
Contact information
| Phone number for new customers | 0330 057 2755 |
| Phone number for existing customers | 0330 127 4846 |
| Website | https://uk.virginmoney.com/mortgages/ |
- Royal Bank of Scotland
Royal Bank of Scotland is committed to helping businesses grow by offering mortgages with the following characteristics:
- Minimum loan of £25,001
- No upper loan limit on a variable interest rate or up to £10m on a fixed interest rate
- Fixed and variable interest rates available
- Up to 25 years for repayment
- No early repayment charges
- Possibility to use repayment holiday.
If you would like to calculate the repayment term and likely monthly repayments, you can use the Commercial Mortgage Calculator available here.
Contact information
| Phone number | 0345 600 2230 |
| Online enquiry form | click here |
| Website | https://www.rbs.co.uk/business/loans-and-finance/commercial-mortgage.html |
- Lloyds Bank
Lloyds Bank prepared a Mortgage Calculator to help clients work out how much they can afford to borrow. Thanks to the tool, they can also get an idea of how much they will have to repay each month.
The main commercial mortgage services that Lloyds Bank offers are:
- Buying first home or premises
- Remortgaging to Lloyds Bank from another lender
- Moving premises.
In addition to that, Lloyds offers a range of mortgages with no charge for a standard valuation.
Contact information
| Phone number | 0800 783 3534 |
| Website | https://www.lloydsbank.com/mortgages.html |
- Aldermore
Aldermore offers commercial mortgage solutions for clients looking to invest in, purchase, or remortgage property. The lender offers mortgages of up to £25 million with flexible terms. The main advantages of choosing Aldermore as your commercial lender are:
- Mortgages up to £25 million
- Variable rates as well as 3, 5, or 7 year fixed rates
- Up to 75% LTV
- Access to professional advisors
- Flexible repayment terms
- Maximum 20 years repayment term
- Available VAT loans.
Aldermore works with various types of commercial clients including warehouses, offices, and industrial companies.
Contact information
| Phone number | 01733 404 518 |
| Email address | commercialmortgages@aldermore.co.uk |
| Website | https://www.aldermore.co.uk/business/commercial-mortgages/ |
- YBS Commercial Mortgages
YBS Commercial Mortgages claims to be an expert in commercial mortgages and is proud to be offering a flexible approach to lending. The benefits of choosing YBS Commercial Mortgages as your lender include:
- Minimum lending amount of £500,000 and a maximum one of £20,000,000
- Loan repayment terms from 5 to 25 years
- Assistance of professional advisors who support clients during each step of the process
- Loans up to 75% LTV
- Both variable and fixed rates.
With YBS Commercial Mortgages you can fix your mortgage rate for 5 or 10 years.
Contact information
| Email address | commerciallending@ybs.co.uk |
| Website | https://www.ybs.co.uk/commercial/index.html |
- Danske Bank
Danske Bank helps businesses understand the variety of commercial loans. If you choose Danske Bank as your commercial lender, you can choose one of the following:
- Fixed rate plan
- FlexLån® – where the interest rate is lower than on fixed rate plan but prices may unexpectedly rise during the repayment term
- FlexGaranti® – where rates are adjustable with a guaranteed interest rate ceiling
- Danske Prioritet – where offset loan is linked to a deposit account and the interest rate is variable.
Danske Bank can help you analyse all these options and choose the best one for the needs of your business. You can also receive advice on buying, owning, or selling a commercial property.
Contact information
| Phone | +45 70 12 34 56 |
| Website | https://danskebank.dk/en/personal/products/loans/mortgage-loans#accordion-0-item-1 |
- Clydesdale Bank
Whatever your business plans are, Clydesdale Bank can help you grow your business by offering competitive and flexible commercial mortgages. The main features of commercial mortgages Clydesdale Bank offers are:
- Available for amounts larger than £25,000
- Maximum loan term of 20 years
- Flexible repayment options tailored for your business circumstances
- Fixed rates up to 5 rates or combination of fixed and variable rates
- Up to 70% LTV.
The maximum commercial mortgage term with this lender is 20 years but you might be offered a different term based on the circumstances of your business.
If you want, you can take a capital repayment holiday but then the total interest charged and the total amount payable over the full repayment term will increase.
Contact information
| Phone | 0800 032 3971 |
| Website | https://secure.cbonline.co.uk/business/our-products/loans-and-finance/commercial-mortgages/ |
- White Oak UK
White Oak was established in 1986 and has since then been focusing on helping businesses grow by offering them loans and helping them manage their finances. White Oak offers a number of business lending solutions so each client can find a loan suitable for the needs of their business. Commercial lending products that White Oak offers include:
- Working Capital Loans
- Asset Finance
- VAT Loans
- TAX Loans
- Business Development Loans
- Recovery Loans Scheme
- Invoice Finance
- Asset Based Lending
- Supply Chain Finance
- Trade Finance.
If you choose White Oak as your commercial lender, you will be able to borrow from £25,000 to £2 million with the repayment term ranging from 12 to 48 months. You will be given access to flexible repayment options.
Over the years White Oak has helped more than 20,000 small and medium-sized businesses and mid-corporates. The lender works with finance professionals so you can be sure that you are getting expert advice regarding your commercial loan.
Contact information
| Phone | +44 (0) 371 454 3557 |
| Website | https://whiteoakeurope.com |
- Rangewell
Rangewell offers large-scale funding for your business. If you choose Rangewell as your lender, you will be able to enjoy the following benefits:
- Minimum loan amount of £50,000
- No maximum loan amount
- Up to 80% LTV
- Individual loan terms tailored to your business’s circumstances.
Rangewell is proud to be a business finance expert and can offer you the most competitive commercial mortgage deal.
Contact information
| Phone | 020 4525 5312 |
| Website | https://rangewell.com/commercial-property/mortgages |
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