Best Commercial Mortgage Lenders in the UK

Best Commercial Mortgage Lenders

Your best lender hinges on three things: whether the property is owner-occupied or investment, how long you have traded, and how fast you must complete. Pricing is set deal by deal, so treat each name below as a starting point, not a quote.

Best Overall Commercial Mortgage Lender

Allica Bank. Allica is the only lender here that publishes a full rate card, so you can sense-check pricing before applying: owner-occupied from 6.50%, investment from 7.90%. It lends up to 80% LTV for owner-occupiers, the highest here, on two years of accounts, and works direct or through brokers.

Visit Allica →

Best for Owner-Occupied Premises

Atom Bank. Buying premises to trade from and chasing the keenest rate? Atom’s fixed pricing from 5.97% on its premium tier is among the lowest here, with interest-only up to five years. The catch: Atom is broker-only, so you apply through an intermediary.

Visit Atom Bank →

Best for Commercial Property Investors

Shawbrook. For investment property, Shawbrook publishes rates from 5.24% (variable), lends up to 75% LTV and up to £35m, and accepts ex-pats and trusts. Owner-occupied trading rates are higher, from 7.39%, so this pick is squarely for investors and landlords.

Visit Shawbrook →

Best High-Street Bank Option

NatWest. Of the high-street banks, NatWest is the most open on the basics: a published £25,001 to £10m range, terms to 25 years, and a 25% deposit guideline. You can apply online up to £750,000. Rates, as with every high-street bank, are still quoted case by case.

Visit NatWest →

Best Specialist Commercial Mortgage Lender

Together. When a case falls outside bank criteria, a new company, an unusual property, income from projections, Together lends where mainstream banks decline. Rates start from 8.84%, well above the banks, so it is the right answer only when a cheaper lender says no.

Visit Together →

Best for Larger Commercial Property Loans

Aldermore. For larger deals, Aldermore’s commercial real-estate team lends from £3m up to £100m, the biggest ceiling here, at up to 75% LTV with interest-only on qualifying cases. OakNorth and Assetz Capital are strong alternatives for bespoke deals into the tens of millions.

Visit Aldermore →

Commercial Mortgage Lenders Reviewed

Specialist and challenger banks publish more and lend more flexibly; the high-street names are familiar but price bespoke and underwrite more strictly. The reviews below run roughly in that order, specialist first. Tap any card to expand the detail.

How Commercial Mortgages Work

A commercial mortgage is secured against property that is not your home: premises you trade from, or property you let out. When your next rent review lands and the figure jumps again, buying swaps that rent for a payment you control. Rates run above residential: lenders weigh the business too.

Owner-Occupied vs Investment Mortgages

Owner-occupied is for premises you trade from; investment is for property you let out, and lenders underwrite the two differently. Some do only one: Santander is owner-occupied only, while HSBC limits investment lending to businesses turning over more than £15m.

Owner-Occupied vs Investment Mortgages

Factor	Owner-occupied	Investment
Who it is for	A business buying its own trading premises	A landlord or investor letting the property out
How affordability is judged	Business profit and cash flow (debt-service cover)	Rental income versus the mortgage payment (rental cover)
Main lender concern	Can the trade service the loan?	Is the tenant and lease strong enough?
Typical max LTV	Up to 75%, occasionally 80% (Allica)	Usually up to 75%
Common risk	A downturn in trade also threatens your premises	Void periods or a weak tenant hit rental cover
Verified 21 June 2026.

Loan Amounts, LTV and Deposit Requirements

• Deposit: expect to put in 25% to 35% of the property value, so most lending is 65% to 75% LTV.
• Higher LTV: Allica goes to 80% for owner-occupiers; Metro Bank advertises up to 85% on loans to £5m in England and Wales.
• Loan size: ranges from £50,000 (Together) and £25,001 (high-street banks) up to £100m (Aldermore CRE).
• Worked range: a £600,000 owner-occupied purchase at 75% LTV needs a £150,000 deposit and a £450,000 loan.
• 100% LTV: not available in the mainstream; only possible where you add extra security, such as another property (Together).

Repayment Terms and Interest-Only Options

• Terms: typically 5 to 25 years; HSBC and Allica go to 30, while Cynergy and Handelsbanken cap at around 10.
• Interest-only: common for investment lending, usually for up to five years; Redwood is the outlier, offering interest-only for up to 20 years.
• Amortisation: some lenders set a short commitment term (Assetz seven years) but amortise the payment over 25, with a balance due or refinanced at the end.
• Trade-off: interest-only cuts the monthly payment but needs a credible plan to repay the capital later.

Commercial Mortgage Rates and Fees

With the Bank of England base rate at 3.75% (June 2026), commercial mortgage pricing in 2026 broadly splits by lender type. High-street banks are cheapest but hardest to access; challenger banks sit in the middle with published rates; specialists cost most but lend on cases others decline.

Commercial Mortgage Rates and Fees

Lender type	Owner-occupied (indicative)	Investment (indicative)
High-street banks	~3.5% to 5.0%	~4.0% to 5.5%
Challenger banks	~6.0% to 7.0%	~6.5% to 8.1%
Specialist lenders	~6.5% to 9.0%+	~7.0% to 10%+
Verified 21 June 2026.

Interest Rates and What Affects Them

• LTV: the lower your LTV, the lower the rate; the keenest headline rates need 50% to 65% LTV.
• Property type: standard offices, retail and industrial price best; unusual or non-standard assets cost more.
• Trading history and accounts: stronger, longer accounts unlock cheaper pricing.
• Tenant strength (investment): a long lease to a strong tenant lowers risk and rate.
• Fixed vs variable and term: fixed rates buy certainty; variable tracks the base rate.
• Arrangement fee chosen: a higher fee (up to 3%) often buys a lower headline rate.

Arrangement, Valuation and Legal Fees

Arrangement, Valuation and Legal Fees

Fee	Typical cost	What to watch
Arrangement fee	1% to 2% (banks); 2% to 3% (specialist)	Often added to the loan; a higher fee can buy a lower rate
Valuation (RICS)	£1,000 to £7,500+ by property value	Paid upfront; unusual property costs more
Legal fees	£2,000 to £7,000+ (yours), plus the lender’s	You usually pay both sides
Broker fee	0.5% to 1%, or a fixed fee	Some lenders here lend direct, saving this
Early repayment charge	1% to 5%, often stepped down over a fix	Variable-rate deals usually have none
Verified 21 June 2026.

Total Cost of Borrowing

Commercial Mortgage Eligibility

Trading History and Affordability

• High-street banks: usually want two to three years of profitable filed accounts.
• Challenger banks: typically two years of accounts (Allica, Atom, Recognise); strong projections may be considered.
• Specialist lenders: more flexible, with new companies and income projections accepted (Together).
• Affordability: lenders test that profit or rent comfortably covers the payment, with headroom built in.

Property Type, LTV and Rental Cover

• Property type: standard commercial (office, retail, industrial) is widely funded; semi-commercial and non-standard assets need a specialist.
• LTV: usually capped at 65% to 75%, with a small number going higher.
• Rental cover (investment): rent typically must cover the mortgage by 125% (limited company) to 140% to 145% (personal), tested at a stressed rate.
• Stress rate: lenders commonly stress at a 7% to 8% floor, so you can pass on the pay rate but fail the stress test. Allica, for example, looks for debt-service cover around 130%.

Credit Checks and Personal Guarantees

A clean credit file opens more doors, and cheaper ones: high-street banks reject adverse credit, while specialists will consider it (though InterBay wants a clean 36-month record). Lenders check both the business and its directors, and for limited companies a personal guarantee is standard.

How to Compare Commercial Mortgage Lenders

High-Street Banks vs Specialist Lenders

High-Street Banks vs Specialist Lenders

Factor	High-street banks	Challenger & specialist
Pricing	Lowest, but bespoke and unpublished	Higher, but often published up front
Eligibility	Strict: 2 to 3 years of accounts, clean credit	More flexible: shorter history, some adverse
Speed	Slower, often weeks to months	Faster, decisions often in weeks
Flexibility	Limited; standard cases only	High; non-standard property and structures
Best suited to	Established, profitable, low-risk borrowers	Newer, complex or time-pressed borrowers
Verified 21 June 2026.

Cost, Rate and Fees

• Compare the all-in cost, not the headline rate: a low rate with a 3% fee can cost more than a higher rate with a 1% fee on a short hold.
• Factor in valuation and legal fees on both sides, plus any early repayment charge if you might refinance early.
• Lenders that lend direct (Allica, NatWest, Assetz) can save you a broker fee.

Speed, Flexibility and Lending Criteria

• If you need to complete fast, specialists and challengers (OakNorth, Atom) tend to move quicker than high-street banks.
• Check the route: several strong lenders here are broker-only (Atom, InterBay, YBS), so factor in finding an intermediary.
• Match the lender to the case: owner-occupied vs investment, property type, LTV and trading history all narrow the field quickly.

When a Commercial Mortgage May Not Be Right

A commercial mortgage suits buying and holding property for the long term. If you are racing a 28-day auction deadline, kitting out a unit with machinery, or just plugging a cash-flow gap until a big invoice lands, another product is usually cheaper or faster.

• Bridging loans: for buying at auction, a short hold under two years, an unmortgageable property, or breaking a chain. See our guide to bridging loans.
• Asset finance: for funding equipment, vehicles, plant or machinery secured against the asset itself, not property. Compare options in our business finance hub.
• Business loans: for working capital or growth without buying property, often faster but smaller and dearer. See the best business loans.
• Invoice finance: for releasing cash tied up in unpaid invoices, where the funding follows your receivables rather than property.

Frequently Asked Questions