Compare Commercial Mortgage: Rates, Providers and Fees
For established businesses (3+ years of accounts), Lloyds is the default starting point. For shorter trading histories or complex cases, Aldermore or Together are the practical alternatives.
Compare commercial mortgage providers through Tide’s funding marketplace — one application
- Owner-occupied and investment properties
- Multiple lenders compared in one place
- Up to 75% LTV from specialist lenders
- Apply once, see matched options
Compare Commercial Mortgage Lenders
All Cards at a Glance
Compare key features side by side — tap any row for the full review.
| Provider | Best For | Key Feature | Annual Fee | Action |
|---|---|---|---|---|
 | Established businesses wanting high-street bank credibility and relationship management for commercial property | From £25,001 | From ~3.5% (variable) | View Deal → |
 | SMEs with shorter trading history or complex circumstances needing a more flexible specialist lender | £150,000 – £5,000,000 | Varies by profile | View Deal → |
 | Complex or non-standard commercial property cases that mainstream banks decline | £100,000 – £75,000,000 | Higher than banks — flexibility premium | View Deal → |
Data verified April 2026. Commercial mortgage rates are indicative — your actual rate depends on LTV, property type, business profile, and lender. Always obtain written quotes from multiple lenders before committing.
Lloyds Commercial Mortgage
Aldermore Commercial Mortgage
Together Commercial Finance
What is a Commercial Mortgage?
A commercial mortgage is a loan secured against a property that does not qualify as your main residence. Businesses use them to purchase operational premises, investment properties, or to fund renovation of commercial real estate.
Commercial mortgages carry higher interest rates than residential mortgages because lenders assess the business’s ability to repay — not just the property value. We found that rates typically start around 3.5% for well-established businesses with strong accounts, rising to 6%+ for higher-risk profiles.
What Types of Commercial Mortgages are Available
Owner-occupied mortgages are for businesses buying premises they will operate from. These typically attract better rates and higher LTV than investment mortgages.
Residential buy-to-let commercial mortgages are used when leasing a property to residential tenants. Eligibility depends on projected rental income versus mortgage repayments.
Commercial buy-to-let covers properties leased for business use — offices, retail units, industrial units. Lenders scrutinise tenant quality and lease length carefully, as these affect the property’s security value.
Commercial Mortgage Rates
Commercial mortgage rates in the UK currently range from approximately 2.25% to 18%, depending on borrower profile, LTV, property type, and lender. The average for a 15-year term sits around 3%–3.75%; for 30-year terms, around 3.5%–4.5%.
We compared lender categories: high-street banks (Lloyds, Barclays, HSBC) offer the lowest rates but the strictest eligibility. Challenger banks like Aldermore offer slightly higher rates but accept shorter trading histories. Specialist lenders like Together charge the most but lend on non-standard cases that others decline.
Commercial Mortgage Fees
Expect to pay these fees on a commercial mortgage: an arrangement fee of 1-2% of the loan amount; a property valuation fee of approximately £500 for standard cases; legal fees of roughly £500 per side; and a broker fee of around 1% if using a traditional broker.
We earn from lenders, not from you, so there’s no broker fee on this comparison. Factor in all fees: a lower rate with a 2% arrangement fee can cost more than a slightly higher rate with no fee on shorter terms.
How Much Deposit do I Need for a Commercial Mortgage?
Most commercial mortgage lenders require a deposit of 20-40% of the property value, meaning you can typically borrow 60-80% LTV. The exact percentage depends on your business profile and the property type.
Established owner-occupied businesses with 3+ years of accounts can sometimes achieve 80% LTV. If your business is newer or the property is investment-only, we found that lenders typically require a larger deposit — 40-50% — to offset the higher risk.
What are the Pros and Cons of a Commercial Mortgage?
Advantages: Protection from rent increases; monthly repayments that may be lower than equivalent rent; potential subletting income; fixed-rate options for payment certainty; building equity in a productive asset.
Disadvantages: Deposit requirement of 20-40%; slower to sell or exit than renting; relocation is expensive once you own premises; variable-rate exposure if rates rise; commercial property values can fall, leaving you in negative equity.
Who is Eligible for a Commercial Mortgage?
High-street banks generally require three years of filed accounts. Challenger banks like Aldermore typically need two years. Specialist lenders like Together are more flexible — they’ll consider businesses with shorter histories, though at higher rates.
Your credit history, business revenue, and the quality of the property as security all matter. If you’re a startup or have adverse credit, we recommend approaching specialist lenders first to understand the realistic rate before going to a mainstream bank.
What are the Alternatives to a Commercial Mortgage?
If a commercial mortgage isn’t right for your situation, consider: Bridging loans for short-term property transactions (12-24 months) where you plan to refinance onto a commercial mortgage after completion.
Unsecured business loans (up to £500,000 from specialist lenders) if you need capital for premises improvements rather than purchase. Remortgaging if you already own a property and want to release equity for business investment.
What is the current average commercial mortgage rate in the UK?
Commercial mortgage rates in the UK currently range from approximately 2.25% to 18%, depending on the borrower profile. The average for a 15-year term is around 3%–3.75%; for a 30-year term, around 3.5%–4.5%. High-street banks like Lloyds and Barclays offer the lowest rates for established businesses.
How much deposit do I need for a commercial mortgage?
Most lenders require 20-40% deposit (60-80% LTV). Established owner-occupied businesses with strong accounts can sometimes achieve 80% LTV. Higher-risk profiles or investment properties typically require 40-50% deposit.
Can I get a 100% commercial mortgage?
In practice, no — 100% LTV commercial mortgages don’t exist in the mainstream market. However, some specialist lenders will consider lending against additional security (such as another property) to effectively fund 100% of the purchase price. This is complex and expensive.
How long does it take to get a commercial mortgage?
High-street banks typically take 4-8 weeks from application to completion. Specialist lenders and challengers can be faster — often 3-4 weeks for straightforward cases. Complex transactions with unusual property or ownership structures take longer regardless of lender.
What is the maximum term for a commercial mortgage?
5-10 years is the standard loan term for most commercial mortgages, though some lenders offer repayment periods up to 25 years. Longer amortisation periods lower monthly repayments but increase total interest paid. Many businesses refinance at the end of the fixed term rather than maintaining the same mortgage indefinitely.