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Commercial Mortgage Lenders: A Guide to Finding the Best Options

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If you’re a business owner or entrepreneur looking for a commercial mortgage lender, it’s important to find the right lender for your needs and circumstances. Inaccurate information is rife on the internet, and unfortunately, some brokers aren’t equipped to provide whole-of-market advice, which can result in bad advice and your commercial mortgage application being rejected. That’s why seeking professional help is always the best course of action.

In this article, we will cover everything you need to know about commercial mortgage lenders. We’ll explore how commercial mortgage lenders differ from residential mortgage providers, how to find the best commercial mortgage lenders in the UK, what to expect from commercial mortgage lenders, and much more. We’re committed to providing clear, reliable, and confidential advice, so you can make informed decisions about your commercial mortgage.

Key Takeaways

  • Seek professional help when looking for a commercial mortgage lender to avoid bad advice and potential application rejection.
  • Learn about the differences between commercial and residential mortgage providers before choosing a lender.
  • Consider factors such as property type, credit score, and application tips when choosing a commercial mortgage lender.

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What is the Difference Between the Commercial Mortgage Lenders And Residential Mortgage Providers?

When it comes to commercial mortgages, lenders usually require higher deposits and offer a wider range of mortgage lengths and terms. They base lending decisions on the viability and performance of the business, and their affordability assessment is based on operating performance rather than income multiples. The rates and fees can be higher, and lending decisions are bespoke and made on a case-by-case basis. Unlike residential mortgages, commercial mortgages don’t have early repayment charges, and they offer repayment holidays. The Bank of England base rate affects variable interest rates.

As a specialist commercial mortgage brokers we are experts in business property mortgages and have access to every commercial lender on the market.

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Speak to Our Expert on Commercial Mortgages

Navigating the complex world of commercial mortgages can be challenging. That’s why it’s essential to speak to an expert, such as a mortgage broker or relationship manager. They possess vast industry knowledge and strong relationships with a wide range of commercial lenders, enabling them to match your unique needs with the best lender on the market.

If you have questions or concerns about commercial mortgages, ask us a question, and our expert will be contacting you for help.

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Best Commercial Mortgage Lenders in the UK

When searching for a commercial mortgage lender in the UK, it is important to work with an experienced broker who can help you find the best deal. To ensure that your broker can provide the best service, they will need to know key information about your business, including your budget, deposit size, income, expenditure, credit rating, and the location and type of property you want to buy.

Although this information may feel sensitive, it is important to remember that your broker is bound by confidentiality and will only use the information to find the best commercial mortgage lender and deal for you.

To find the best commercial mortgage lenders in the UK, consider working with a broker who has experience in your industry and can provide tailored advice. You may also want to compare rates and terms from multiple lenders to find the best deal.

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Bad-credit commercial mortgage lenders?

If you have ‘bad credit’, it can impact your choice of lenders and the interest rate you pay. However, there are still options available to you. Private and specialist commercial mortgage lenders may be able to help you secure a commercial mortgage despite your less-than-perfect credit history. These lenders take a different approach to assessing applicants with forms of ‘bad credit’.

In some cases, there may even be lenders who are willing to loan to borrowers who have previously had CCJs or been bankrupt. Keep in mind that you will likely pay higher interest rates for these loans.

It’s important to note that each lender has a unique set of criteria that they use to determine whether someone is likely to repay their loan. While one lender may focus on income more than any instances of missed loan repayments, another may look at the date of when the ‘bad credit’ occurred or whether your debts have been settled.

If you are interested in finding a commercial mortgage lender that accepts bad credit, consider reaching out to private and specialist lenders. These lenders may be able to offer you a solution that works for your unique situation.

Commercial Mortgage Lenders

When applying for a commercial mortgage, it’s important to understand the different eligibility requirements and lending criteria that each lender may have. Here is a brief summary of some of the well-known commercial mortgage lenders and their position on commercial mortgages:

Barclays

Barclays commercial mortgages: Each case will be taken on merit, depending on the purpose. Your personal circumstances and your business’s financial situation can affect the rate that you are offered for a commercial mortgage with Barclays. As well as this, the lending criteria can be strict, so before applying directly and to avoid a mortgage rejection on your credit report, speak to an advisor.

HSBC

HSBC Commercial Mortgages: There is no maximum limit on their commercial mortgages; however, the amount that you can borrow and the interest rate you pay will vary depending on factors such as your business’s turnover and outgoings. Applying for a commercial mortgage with HSBC or any other lender is a big financial decision, so always seek advice from a professional.

Santander

The interest rates and terms of a Santander commercial mortgage aren’t easily accessible to the public, so it’s recommended to contact a broker who has access to this information as well as other lender commercial mortgage rates. Loans start from £25,001, and Santander states that they will consider any amount higher, although the amount you can borrow will be based heavily on your affordability and situation.

Natwest

Natwest bases their assessments of eligibility for commercial mortgage lending on the credit history of the individual, business owners or directors. Because of this, it’s important that your credit score and business accounts are in order. A mortgage advisor can help you to improve your credit score and can also advise you on how to present your accounts in the best way possible.

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Semi-Commercial Mortgage Lenders

Semi-commercial mortgages are usually offered by business mortgage lenders instead of residential home loan providers. These lenders are experienced in handling loans for properties that are used for both commercial and residential purposes. To find out if the property you want to buy qualifies as semi-commercial, check out this guide to semi-commercial mortgages.

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Commercial Lenders List

Commercial mortgage rates are subject to change, making it difficult to determine the exact amount you will pay. Brokers have access to this information and can update you as needed, including how rate changes could affect you financially over time. The following is a list of recommended commercial mortgage lenders:

  • Nationwide Commercial Mortgage
  • TSB Commercial Mortgage
  • Lloyds Commercial Mortgage
  • Metro Bank Commercial Mortgage
  • Virgin Commercial Mortgage
  • Royal Bank of Scotland Commercial Mortgage

If you want to learn more about a specific lender and their rates, contact an advisor. For more information on commercial mortgages for specific industries, check out the following related posts:

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Application Process for Commercial Mortgages

When applying for a commercial mortgage, avoid making too many applications in a short space of time. This can cause a lender to become cautious and less likely to lend to you. Get trustworthy and reliable advice from a professional. Ensure that your accounts are in order and have them completed by a registered accountant. Fill out an Asset and Liability form to evidence your company’s net worth ahead of the application. Be aware of the costs involved, including arrangement fees, security fees, and legal charges.

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Speak to our broker first!

If you’re unsure about which commercial mortgage lender to choose, it’s recommended to speak to a broker first. We can help you find the right mortgage for your circumstances.

Once you make an enquiry, our experienced mortgage broker will contact you straight away. We can help you find the top UK commercial mortgage rates and offer the right advice for your needs.

Using a broker can save you time and effort in finding the right lender. They can also help you navigate the complex process of applying for a commercial mortgage.

Overall, speaking to a broker is a wise choice if you’re unsure about which commercial mortgage lender to choose.

Frequently Asked Questions

What are the top 10 commercial mortgage lenders in the UK?

The top 10 commercial mortgage lenders in the UK are as follows:

LenderLoan AmountsLoan TermsInterest Rates
Lloyds Bank£25,000 – £25 million+Up to 30 yearsFixed or variable
Barclays£25,001 – £25 million+Up to 25 yearsFixed or variable
NatWest£25,001 – £10 million+Up to 30 yearsFixed or variable
Santander£50,000 – £10 million+Up to 25 yearsFixed or variable
HSBC£50,000 – £10 million+Up to 20 yearsFixed or variable
Clydesdale Bank£25,000 – £10 million+Up to 20 yearsFixed or variable
Metro Bank£500,000 – £10 million+Up to 25 yearsFixed or variable
Shawbrook Bank£75,000 – £25 million+Up to 30 yearsFixed or variable
Aldermore£50,000 – £1 million+Up to 25 yearsFixed or variable
The Co-operative Bank£75,000 – £10 million+Up to 25 yearsFixed or variable

Which banks offer the best commercial property loans?

The best commercial property loans in the UK are offered by the following banks:

  • Lloyds Bank
  • Barclays
  • NatWest
  • Santander
  • HSBC

Who are the leading semi-commercial mortgage lenders?

The leading semi-commercial mortgage lenders in the UK are as follows:

  • Shawbrook Bank
  • Aldermore
  • The Co-operative Bank
  • Clydesdale Bank
  • Metro Bank

How do I find a reliable commercial mortgage broker?

To find a reliable commercial mortgage broker, you can start by asking for recommendations from other business owners or professionals in your network. It’s important to choose a broker who is experienced, knowledgeable, and has a good track record of helping clients secure the right mortgage for their needs.

What factors should I consider when choosing a commercial mortgage lender?

When choosing a commercial mortgage lender, you should consider the following factors:

  • Interest rates and fees
  • Loan terms and repayment options
  • Loan amounts and eligibility criteria
  • Lender’s reputation and track record
  • Customer service and support

Who typically uses commercial mortgages for their business needs?

Commercial mortgages are typically used by businesses that need to purchase or refinance commercial property, such as office buildings, warehouses, retail spaces, and industrial facilities. They are also used by property developers and investors who buy and sell commercial property as part of their business strategy.

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Legal Information & Disclaimer

This site is an information only site. All of our articles are written by authorised mortgage brokers for the only aim of providing great, useful, mortgage and loan related information. We intent to offer the best possible suggestions and guides however can’t always guarantee to be perfect, please use the information at your own risk. We can’t accept responsibility if things go wrong. Please contact us via our contact page if you see anything that requires changing and we will do so as soon as possible.

The articles on our site do not provide financial advice. Instead, they aim to equip you with the necessary information to attain your mortgage objectives. 

** The content provided in this page is correct at the time of writing. Mortgage and loan lender’s qualifying criteria and rules change frequently so speak to an adviser to confirm the most up to date rules and criteria. The content on the website is not specific advice to each reader, and does not constitute financial recommendations.