Commercial Mortgage Brokers UK
FD Commercial is a specialist commercial mortgage broker arranging loans from £250,000 for owner-occupiers buying their trading premises, investors purchasing commercial property to let, and professional practices requiring specialist lending structures. As a broker rather than a lender, we place each case with the lender whose criteria and pricing fit it, with comprehensive access to the market and 180+ lenders across England, Scotland and Wales.
No broker fees on most transactions. We are paid by the lender on completion.
Owner-occupier commercial mortgages
An owner-occupier commercial mortgage funds the purchase of business premises you trade from. Surgeries, offices, workshops, warehouses, retail units, restaurants. If your business operates from the property, this is the correct product.
Lenders underwrite owner-occupier transactions against the business itself. They want to see trading accounts (usually two to three years), evidence of profitability and confirmation that the mortgage payments are affordable relative to business income. The debt service coverage ratio (DSCR), which measures net operating income against mortgage payments, needs to sit comfortably above 1.20 in most cases.
LTV on owner-occupier commercial mortgages typically runs to 75% for standard commercial property and up to 80% for lower-risk assets or stronger borrower profiles. Interest-only periods are available, as are full capital repayment structures depending on the lender.
Where the need is short term rather than a purchase, a tax bill, a partner buyout, or an acquisition that will not wait for a term lender, the same premises can secure a business bridging loan instead, repaid on sale or on refinance onto a commercial mortgage.
Professional practices
Dental practices, GP surgeries, solicitors, accountants and veterinary practices are treated as a specialist category by many lenders. Because the business income is reliable and the premises are typically difficult to replace, some lenders will advance up to 100% of the purchase price, underwriting against practice profitability rather than property value alone. If you are buying your practice premises, speak to us before approaching your bank. The terms available through specialist lenders are usually materially better.
Dental practice purchase, South West England. £1.1m.
A principal dentist purchasing a long-established NHS and private practice. The property was valued at £900,000 but the goodwill and business value significantly exceeded this. FD Commercial placed the case with a specialist healthcare lender on a 100% LTV basis, underwritten against three years of practice accounts. No personal security was required beyond a standard director's guarantee.
Commercial investment mortgages
A commercial investment mortgage is for investors buying business premises to let to a third-party tenant. The lender underwrites the property and the lease rather than your personal income.
Key factors are: the tenant's covenant strength, the remaining lease term, the initial and passing rent, and the gross yield relative to the purchase price. Long leases to strong tenants (national retailers, healthcare operators, government bodies) attract the most competitive terms. Short leases, break clauses or weaker tenants require more equity and carry higher rates.
| Property type | Typical LTV | Rate range (2026) | Minimum yield |
|---|---|---|---|
| Standard commercial (office/retail/industrial) | Up to 70% | 4.8–6.5% | 6–7%+ |
| Healthcare (dentists, GP, care homes) | Up to 75% | 4.5–6.0% | 5–6%+ |
| Leisure (pubs, hotels, gyms) | Up to 65% | 5.5–7.5% | 8%+ |
| Student accommodation (PBSA) | Up to 70% | 5.0–7.0% | 6–7%+ |
Figures are indicative only. Actual terms depend on borrower profile, property specifics and prevailing lender appetite.
Semi-commercial mortgages
Semi-commercial or mixed-use properties combine residential and commercial elements, typically retail or office space on the ground floor with residential flats above. The underwriting blends residential and commercial criteria, which means only specialist lenders participate.
Most semi-commercial lenders will advance up to 75–80% LTV. The split between commercial and residential floor space matters: properties with a higher proportion of commercial use are underwritten more conservatively. Vacant commercial units or short-lease ground-floor tenants reduce both the pool of available lenders and the LTV offered.
FD Commercial has placed semi-commercial transactions for portfolio landlords, developers converting upper floors to residential, and investors acquiring high street assets with mixed income streams. See our semi-commercial mortgage page for detail, or use our semi-commercial mortgage calculator UK to model indicative borrowing costs.
Large and high-value commercial mortgages
For transactions above £2 million, the lender universe narrows and the underwriting becomes more individually negotiated. FD Commercial has placed commercial mortgages to £750 million and above, working with challenger banks, private banks, debt funds and institutional lenders not accessible through standard broker channels.
Large transactions benefit from a broker's ability to run a structured process, approaching multiple lenders simultaneously, managing term sheets and negotiating detailed credit terms. The difference between the best and worst terms on a £10 million transaction can be material. Going direct to a single lender rarely produces optimal results.
See our large commercial mortgages page for detail on lenders, indicative LTV and rate expectations for transactions above £2 million.
Commercial mortgage rates 2026
Commercial mortgage rates are set individually by lenders based on the transaction, not published in the same way as residential rates. The figures below reflect typical market pricing in 2026 for standard commercial transactions with creditworthy borrowers and clean properties.
| Product type | Rate range | Typical LTV | Arrangement fee |
|---|---|---|---|
| Owner-occupier commercial | 4.5–6.0% pa | Up to 80% | 1–2% |
| Commercial investment | 4.8–7.0% pa | Up to 70–75% | 1–2% |
| Semi-commercial | 5.0–7.5% pa | Up to 75–80% | 1–2% |
| Professional practices | 4.5–5.5% pa | Up to 100% | 1–1.5% |
Interest-only terms are available from most commercial lenders for investment transactions. Owner-occupier lenders typically prefer capital repayment structures, though interest-only periods are available at the start of the term. For more on how rates are assessed, see our guide to commercial mortgage underwriting.
Why use a commercial mortgage broker instead of going direct?
A commercial mortgage broker sees the whole market; a bank only offers its own products. Commercial lending is priced deal by deal, and the difference between lenders on the same case is routinely 0.5 to 1.5 percentage points and several weeks of process time. Going direct means committing to one lender's criteria, credit committee, and timetable before you know whether a better fit exists two doors down.
The broker's job is putting the deal in the right tier from day one: clean, established businesses at the high street for the lowest rates; deals with a wrinkle at the challenger banks; complex cases at the specialists. The cases we find hardest to rescue are not the complicated ones, they are clean deals that spent two months at a bank that was never going to do them. With FD Commercial there is no broker fee on most transactions, so there is no fee saving to weigh against going direct either.
How do I choose a commercial mortgage broker?
Ask three questions of any commercial mortgage broker: how many different lenders did you complete with last year, do you charge a fee on top of the lender's commission, and what happens if the first-choice lender declines. Genuine market access, transparent pay, and a credible plan B are what separate a broker from an introducer. Our commercial mortgage rates guide shows how the lender tiers price, and the commercial mortgage calculator models what your income supports before you speak to anyone.
How to arrange a commercial mortgage
Initial consultation
We discuss the property, the borrower structure, the purpose of the loan and your timeline. We identify the right lenders and product type before any application is made.
Terms and lender selection
We approach lenders simultaneously and obtain indicative terms. You review the options before deciding which lender to proceed with. No application is submitted until you have approved the terms.
Formal application and valuation
We compile and submit the full application pack. The lender instructs a RICS-accredited valuer. The valuation report is typically returned within two to four weeks.
Credit approval and offer
Once the valuation is received and underwriting is complete, the lender issues a formal mortgage offer. We review the offer documentation with you before instructing solicitors.
Legal completion
Your solicitors and the lender's solicitors exchange and complete. Funds are released on the completion date. The entire process typically runs six to twelve weeks from initial instruction.
Frequently asked questions
Why use a commercial mortgage broker instead of going direct to a bank?
A broker sees the whole commercial lending market; a bank only offers its own products. Commercial mortgages are priced deal by deal, and lender selection routinely moves the rate by 0.5 to 1.5 percentage points on the same case. A broker also puts the deal in the right lender tier from day one, avoiding months lost at a bank that was never going to approve it.
How do I choose the best commercial mortgage broker in the UK?
Look for genuine market access rather than a small fixed panel of lenders, transparency on how the broker is paid, and evidence of completing cases like yours at your loan size. Ask how many lenders they completed with last year, whether they charge a fee on top of lender commission, and what happens if the first-choice lender declines.
What is a commercial mortgage?
A commercial mortgage is a loan secured against commercial or semi-commercial property. It works similarly to a residential mortgage but with different underwriting criteria based on the property type, tenant profile and borrower's business or investment income.
What types of commercial mortgage are available?
Owner-occupier mortgages (buy the premises you trade from), commercial investment mortgages (buy to let to a business tenant), semi-commercial mortgages (mixed residential and commercial property), and large or high-value commercial mortgages for transactions above £2 million.
What commercial mortgage rates are available in 2026?
Owner-occupier rates start from around 4.5% per annum. Commercial investment typically runs 4.8–7.0%. Semi-commercial 5.0–7.5%. Professional practices can often access lower rates due to the stability of healthcare and professional sector income. Rates depend on LTV, property type, tenant and borrower profile.
How much can I borrow?
FD Commercial arranges commercial mortgages from £250,000 with no upper limit. LTV runs to 70–75% on investment property and up to 80% on owner-occupied premises. Professional practices can access up to 100% LTV through specialist lenders. The amount available is also governed by the DSCR: the property's or business's income relative to the loan repayments.
Can I get a commercial mortgage through a limited company?
Yes. Most commercial lenders will lend to limited companies, SPVs and LLPs. The underwriting focuses on company trading history, profitability and director guarantees. SPV lending for investment property is well established and FD Commercial can match you to lenders specifically structured for this.
What is DSCR and why does it matter?
DSCR (debt service coverage ratio) measures the property's net operating income against annual mortgage payments. Most commercial lenders require a minimum DSCR of 1.20 to 1.35. Investment properties with strong tenants on long leases and owner-occupier businesses with consistent profitability typically meet this comfortably. For more detail, see our DSCR guide.
What is a semi-commercial mortgage?
A semi-commercial mortgage is secured against a mixed-use property, typically commercial on the ground floor, residential above. Most lenders advance up to 75–80% LTV. Only specialist lenders participate, as the underwriting blends residential and commercial criteria.
How long does it take to arrange a commercial mortgage?
Six to twelve weeks is typical from initial instruction to completion. The valuation and legal stages take the most time. Having accounts, title documents and lease information prepared before approaching lenders shortens the process.
Does FD Commercial charge broker fees?
No broker fees on most commercial mortgage transactions. FD Commercial is paid by the lender on completion. On certain specialist transactions a fee may apply; this is always disclosed upfront before any work begins.
Can I get a commercial mortgage with adverse credit?
It depends on the nature and recency of the adverse credit. Satisfied defaults and CCJs that are more than two or three years old are often acceptable to specialist lenders, particularly where the borrower profile and property are strong. Undischarged bankruptcies or recent serious adverse credit significantly limit the lender pool. Speak to us with the specifics and we can identify which lenders will consider the case.
Commercial mortgages from £250,000. No broker fees on most transactions. Comprehensive access to the market across 180+ lenders.
Call 03300 100315Recent case studies
£7m Commercial Mortgage: Logistics Unit, Dover
£40m Commercial Portfolio Refinance
£12.5m 100% Commercial Mortgage for a Branded Hotel Purchase
All rates and figures shown are indicative only and subject to lender assessment, credit profile, and market conditions. Rates may change without notice. Your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.