Commercial Mortgages
NexGen Finance supports clients with commercial mortgage options for owner-occupied premises, commercial investment property, semi-commercial and mixed-use assets across the UK.
What Is a Commercial Mortgage?
A commercial mortgage is a loan secured against commercial property — such as offices, shops, industrial units, warehouses, mixed-use premises or other non-residential buildings. Unlike residential mortgages, commercial mortgages are assessed differently by lenders, with different criteria, deposit requirements and terms.
Commercial mortgages are typically used either to purchase premises for a business to trade from (owner-occupied), or to purchase commercial property as an investment to let to business tenants (commercial investment).
Owner-Occupied Commercial Mortgages
An owner-occupied commercial mortgage is used when a business purchases the premises from which it operates. This is common for retail businesses, professional practices, hospitality businesses and manufacturing or industrial operations.
Lenders assess owner-occupied commercial mortgages based on the trading performance of the business, the value of the property, and the ability of the business to service the mortgage from trading income. Deposit requirements vary but typically range from 25% to 40% of the purchase price.
Commercial Investment Mortgages
Commercial investment mortgages are used by investors purchasing commercial property to let to business tenants. The lender will assess the rental income generated or projected, the quality and security of the tenant, and the lease terms in place.
Experienced property investors, landlords expanding into commercial property, and businesses investing in commercial assets often seek commercial investment mortgages.
Semi-Commercial Mortgages
Semi-commercial — or mixed-use — mortgages apply to properties that combine commercial and residential elements. A common example is a ground floor retail unit or office with a flat or flats above. These properties require specialist lender consideration and are assessed differently to both purely residential and purely commercial assets.
Commercial Mortgages for Limited Companies
Both trading limited companies and special purpose vehicles (SPVs) can apply for commercial mortgages. Many experienced investors and business owners structure commercial property purchases through limited companies for tax efficiency. Lenders who accept limited company applications will typically require director personal guarantees in addition to the property security.
Commercial Mortgages for Landlords
Experienced landlords looking to expand into commercial property can access commercial mortgage finance. Lenders will consider the landlord's overall portfolio, experience and financial position alongside the specific property being purchased.
Explore Commercial Mortgage Options
NexGen Finance supports clients with the full range of commercial mortgage enquiries. Explore the specific pages below for detailed information on each type:
Owner-Occupied
Purchasing premises for your own business to trade from.
Commercial Investment
Purchasing commercial property to let to business tenants.
Semi-Commercial
Mixed-use property — shops with flats, offices with residential.
Commercial Remortgages
Refinancing, raising capital or moving from bridging to term.
For Limited Companies
Trading limited companies and SPVs purchasing commercial property.
For Landlords
Landlords expanding their portfolio into commercial investment.
For Shops
Retail premises — owner-occupied and investment shop mortgages.
For Offices
Office premises for professional firms, investors and multi-tenanted buildings.
For Industrial Units
Warehouses, light industrial units, workshops and trade counter premises.
Property Types
Retail & Shops
High street and out-of-town retail units, showrooms and convenience stores.
Offices
Office suites, multi-tenanted office buildings and professional premises.
Industrial & Warehousing
Light industrial units, storage facilities and logistics warehouses.
Mixed-Use Property
Semi-commercial assets combining retail or office space with residential accommodation.
Deposit Expectations
Commercial mortgage lenders typically require a deposit of between 25% and 40% of the property's purchase price or valuation, depending on the property type, the borrower's circumstances and the lender's appetite. Higher deposits can sometimes improve rates or access to lenders with more favourable criteria.
The maximum loan-to-value (LTV) available on commercial mortgages is generally lower than on residential mortgages, reflecting the additional risk and complexity of commercial property transactions.
What Lenders Typically Assess
- ✓ Business accounts and trading history (typically two to three years)
- ✓ Business profitability and ability to service the mortgage
- ✓ Personal financial position and credit history of directors or owners
- ✓ Property type, location, condition and marketability
- ✓ Deposit or equity available
- ✓ Rental income and tenant quality (for investment mortgages)
- ✓ Proposed loan term and repayment method
When a Commercial Mortgage May Not Be the Right Route
In some circumstances, a commercial mortgage may not be the most suitable funding option. Short-term transactions, properties requiring significant refurbishment before refinancing, or situations where speed is critical may be better suited to bridging finance initially. Development finance may also be more appropriate where significant works are required before a commercial mortgage term can begin.
NexGen Finance can help assess which type of finance support is most appropriate for the client's specific situation.
How NexGen Finance Can Help
NexGen Finance helps help clients access suitable commercial mortgage options and specialist advisers based on their circumstances, the property type and their financial position. We do not provide commercial mortgage advice directly, but we can help connect clients with appropriate specialist lenders and brokers who operate in the commercial mortgage market.
NexGen Finance is not a lender and does not provide regulated financial advice. Suitable enquiries may be referred to commercial finance broker partners. Funding is subject to status, affordability, lender criteria and approval. Commercial mortgage enquiries are handled based on the client's stated circumstances. Funding is subject to status, affordability, lender criteria and approval. Where regulated advice is required, this is provided by authorised authorised commercial finance broker partners. Your property may be at risk if you do not keep up repayments on a mortgage secured against it.
A Practical, Compliance-Led Approach
NexGen Finance keeps commercial and property finance enquiries straightforward. We focus on clear communication, practical funding routes and transparent wording, without overpromising outcomes.
Explore Commercial Mortgage Options
Contact NexGen Finance to discuss your commercial property finance requirements and find out how we can help connect you with suitable options.