Capito arranges Commercial Mortgages from £100,000, with no set upper limit, for businesses buying their own premises and investors buying or refinancing let property. Lenders typically go up to 70% of the property's value, and most cases take anywhere from a few weeks to 6–8 weeks, depending on the lender.
Loan size
From £100,000, no set maximum
Loan-to-value
Typically up to 70%
Property types
Owner-occupied, investment, semi-commercial
Term
Up to 25 years
Timescale
Usually a few weeks to 6–8 weeks
Use
Buy, refinance or raise capital
What is a commercial mortgage?
It's a long-term loan secured on property used for business, whether that's an office, a shop with flats above, an industrial unit or a warehouse you let to someone else. Most people use one to buy premises their own business trades from, or to buy or refinance a building they rent out.
Which type do you need?
How much can you borrow?
Anything from £100,000 upwards, though lenders typically go up to 70% of the property's value, so expect to put in at least 30% yourself, in cash or existing equity. Affordability decides the rest: for your own premises the lender wants to see your profits cover the payments, and for a let building it looks at whether the rent does.
How long does it take?
Usually somewhere between a few weeks and 6–8 weeks. Which end you land at depends mostly on the lender and on how fast the valuation and legal work come back; unusual buildings, complicated leases or layered ownership structures slow things down. Buying at auction, or against any deadline that tight, usually means a bridging loan first and a commercial mortgage once the purchase has gone through.
Can you refinance a commercial property?
Yes. You might be coming off a fixed rate, wanting to raise capital against a building you own outright, or looking to clear a bridging loan now that the property is let or the refurbishment is done. Our guide to refinancing out of a bridging loan covers that last case.
When is a mortgage regulated?
If you or a member of your family will live in any part of the property, including a flat in a semi-commercial building, the loan is likely to be regulated. Capito doesn't arrange regulated lending, so we refer those enquiries to an FCA-authorised firm. Commercial mortgages for property your business trades from, or that you let to tenants, are usually unregulated.
Who can get a commercial mortgage?
Limited companies, SPVs, LLPs, partnerships and sole traders can all borrow. A lender will want to see your accounts or the rental income behind the loan, your credit record and how much experience you have running a business or letting property. It will value the building, looking at its condition, location, use and lease terms.
What does a commercial mortgage cost?
You pay interest on a fixed or variable rate, and on top of that there's usually an arrangement fee, a valuation fee, legal costs and, on some loans, early repayment charges if you pay off early. The rate you're offered turns on the property, the loan-to-value and your finances; we'll set out every cost before you commit. Rates and fees vary by lender and case.
Commercial mortgage FAQs
What's the minimum commercial mortgage?
We arrange them from £100,000, with no set upper limit.
How much deposit do I need?
Usually at least 30% of the property's value, because lenders typically stop at 70%. That can come from cash or from equity in a property you already own.
Can I get a commercial mortgage for a shop with a flat above?
Yes, that's a semi-commercial mortgage. If you or your family will live in the flat, though, the loan is likely to be regulated and we'll refer you to an FCA-authorised firm.
Can I buy through a limited company?
Yes; plenty of commercial mortgages go to limited companies and SPVs, and lenders usually ask the directors for personal guarantees.
How long does a commercial mortgage take?
Usually from a few weeks to 6–8 weeks, depending on the lender and how quickly the valuation and legal work come through.
Can I refinance out of a bridging loan with a commercial mortgage?
Yes, it's one of the most common exits once a property is let or refurbished. Start talking to lenders well before your bridging term runs out, not in the final month.
Will enquiring affect my credit score?
No: we don't run a credit check when you enquire, and a lender only runs one if you decide to apply.
How are you paid?
Usually by the lender, as a commission when your mortgage completes, and in some cases there's a broker fee too. Either way, we'll tell you about it before you go ahead.
A few details and we'll match you with suitable lenders. No credit check until you choose one.
No obligation. We're a broker, not a lender, and may receive commission from lenders.