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What are current commercial mortgage interest rates?

Commercial mortgage rates offered by UK lenders currently range from around 1.1% over the Bank of England Base Rate to around 12% per annum.

Factors that impact commercial mortgage rates

  • The type of property
  • The applicant’s experience in either commercial lending, or,

Where the applicant is buying a property to run their own business from (i.e. an owner-occupier):

  • The applicant’s industry experience and the profitability of their company,
  • The credit profile of the applicant (and their business, if they are an owner-occupier)

Today’s commercial mortgage interest rates

Use our commercial mortgage calculator to find out interest rates currently available for the borrowing scenario you are looking at.

Eligibility for a commercial mortgage

  • First time buyers to experienced landlords
  • You must be at least 18 years old
  • Minimum deposit 25% of the property value
  • Upper age limits at application are flexible
  • Low personal incomes are accepted
  • Property, pension and employment income is OK
  • Ready to get started?

    Your personal advisor will call. Direct lines start 01603. Get today's rates, help, or apply. Lender terms provided in as little as two hours!

Commercial mortgage eligibility considerations

If you lack experience in commercial letting, you will typically find loan to value ratios offered to you by a lender would be stricter. This means you will have to put down a bigger deposit than if you were an experienced commercial landlord.

If you do have experience either as a commercial landlord, or have been successfully operating in the industry you are buying a property for, lenders are more flexible on loan to value and tend to offer lower commercial mortgage rates.

Where your credit profile is not as good as you would have liked, this won’t necessarily stop you from getting a commercial mortgage, but may affect the interest rate you can get.

Whether you need a mortgage for a large or small property, or a building which is part commercial, part residential, we can help you identify the most competitive commercial mortgage rate from across a wide range of UK lenders. You can call, live chat, or request a call-back to get started.

We work with a wide range of commercial mortgage lenders, including:

Why choose Commercial Trust?

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Apply with ease by phone

It couldn't be easier to secure a commercial mortgage with our expert advisors. Ask all your questions and arrange an application on the phone from your sofa.

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World class customer service

We'll find you a great deal and take all the admin work off your shoulders, so you can relax while we get your mortgage completed. All the while giving you progress updates.

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Specialist expertise

Our whole focus is landlord finance solutions, which means that you will get a recommendation based on detailed knowledge of the latest deals available.

We can help you with...

  • Borrowing up to 75% loan to value
  • No minimum income options
  • Flexible maximum age requirements
  • 2 and 5 year deal periods
  • Owner-occupied commercial mortgages
  • Investment mortgages based on rental income
  • Complex cases
  • Portfolio deals
  • Special Purpose Vehicle applications
  • Trading limited company applications
  • First time landlords applications
  • Capital repayment, interest-only or part and part payments
  • Flexible purposes for capital raising
  • Dual representation solicitor options
Commercial shops and traditional high street houses

"Semi-commercial property can be a great stepping stone into higher yield deals"

This client wanted a semi-commercial mortgage to buy the business premises they operated from. Rates are lower than pure-commercial deals, and up to 75% loan to value. James Doggett, commercial development specialist.

Find out more
James Doggett

Costs involved in a commercial mortgage

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  • Lenders may charge you for the valuation conducted on your property. They often also charge a product fee, sometimes this can be added to the mortgage.

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  • You will need a conveyancing solicitor who will charge fees. Read our guide to choosing a conveyancing solicitor.

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  • We charge a broker fee for our work. You pay in two parts. A booking fee, once we have found you a mortgage deal, at application. The majority of our fee is paid at completion of the mortgage.

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  • Every mortgage comes with monthly mortgage costs based on the mortgage interest rate the lender charges. These are paid on either an interest-only or capital repayment basis.

How to apply for a commercial mortgage


Tell our advisors about the property you are investing in, your needs and circumstances. If you have credit concerns, chat to us about them, so we can put you with the right lender.


Your advisor will find the best possible deal from a search of thousands of products. They will get you a lender decision in principle, this requires a soft credit search (occasionally it is a hard credit search).


Your advisor will call to discuss the product they have found for you. You will be presented with one mortgage, that is the best match for all your needs and offers you the most cost effective option.


On your instruction, your advisor will submit your mortgage application. Your account manager then does all liaison and administrative work to complete the deal, whilst keeping you updated at every step.

What our clients say about us

Frequently asked questions

Commercial mortgage interest rates are used to calculate the monthly fee you pay to borrow money from a lender for a commercial mortgage. At present, commercial mortgage rates can be from a minimum of 3% above the Bank of England base rate per annum.

Commercial rates vary from one lender to the next, with the maximum being around 13% per annum.

There are no set rates for commercial mortgages, so lenders will complete thorough checks on the application and determine the rate based on its merits.

Lenders will consider several factors to decide on a commercial mortgage rate. The size of loan you need, versus your deposit, will demonstrate to them how much of the risk you are taking on. Your borrowing experience will indicate whether you have successfully managed monthly payments, especially where your experience is specific to commercial lending.

Whether you intend to be an owner-occupier, or are buying the property as an investment to let out, will also determine the rates that you have access to.

Your credit history and, if you are an owner-occupier, the strength of your business, will also be taken into account. You may also be asked to provide personal guarantees, depending on how long your business has been trading for.

Another factor to decide on, when it comes to commercial mortgages, is the rate type. Fixed rates will be set at a certain amount for a set period of time. Tracker rates are commonly tied to the Bank of England Base Rate and Variable rates are tied to the lenders Standard Variable Rate and can vary, based on commercial decisions made by the lender.

Yes, as a general rule the rates for commercial mortgages are higher than those for residential properties.

Mortgage rates are based on risk, and most lenders will see a commercial property to be a riskier investment than a residential property.

This is generally due to the fact that the mortgage payments are reliant on the success of the business or businesses occupying the property. So, the likelihood of the loan defaulting and property being repossessed is higher.

You may also be asked to provide a larger deposit towards a commercial property than for a residential property for the same reason, meaning it will cost you more upfront than a residential mortgage.

If you are applying as an owner-occupier, factors such as your experience as a landlord, as well as your experience of working in the sector or industry your business will be operating in will be considered when considering a commercial mortgage.

Yes, you can get a fixed rate commercial mortgage.

Fixed rates ensure your monthly mortgage payment is the same over the initial rate period. Having a fixed rate makes it easier to plan and budget for the mortgage payments. However, if commercial mortgages rates drop, you will not benefit from the drop.

Variable rates are linked to another rate of charge, often the Bank of England base rate. Your payments can change as a result of any change in the rate of charge. This can be favourable if the rate goes down, but can increase your mortgage payment if the rate goes up.

The type, recency, amount of bad credit and whether or not you have paid back an outstanding sum will influence whether you can get a commercial mortgage.

Severity of a debt can be under or overestimated. The best way to get answers is to call and speak to a broker. Working with lenders every day means a broker can quickly either give you or get you the answers you need.

Each lender is different and some actively seek to lend in areas other lenders do not. So, don’t assume you can’t get a commercial mortgage with bad credit, but do remember it may affect the commercial mortgage rate you are offered.

The best way to reduce your commercial mortgage rate is to provide a larger deposit and reduce your loan to value.

If you have any adverse credit, resolving it and letting some time pass before making an application may help you secure a lower rate. Alongside this, producing a strong business case through your application pack may help and that is where a specialist mortgage broker can help.

High street lenders tend to offer the most competitive commercial mortgage rates in the marketplace, but this is because they will only lend against the lowest risk scenarios. This means that you can’t simply pick a mortgage interest rate and get it.

Commercial lenders have a range of criteria they look for in the property, applicant and industry the building is used for to determine the mortgage rate.

You may find your scenario restricts you to specialist commercial lender rates.