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Commercial Mortgages


We are a leading commercial mortgage broker, helping businesses across the country to find a mortgage or remortgage solution that suits their budget and repayment requirements. We'll work with your team to find a mortgage that is appropriate for your business and premises, guiding and advising you every step of the way.

What is a Commercial Mortgage?

A commercial mortgage is used for the purpose of purchasing or remortgaging commercial premises. You can also use a commercial mortgage to purchase investment properties. Commercial mortgages are provided by standard high street lenders, challenger banks and other financial institutions.

Find out how our commercial mortgage brokers can help source the ideal solution for your business - Call 01202 937880 today.

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Commercial Investment Mortgages

Commercial investment mortgages are given by lenders to business owners looking to invest in or remortgage a commercial or semi-commercial property that is occupied by tenants. The fees and rates are slightly higher than standard commercial mortgages that are given in owner-occupied cases. 

Semi Commercial Mortgages

Semi commercial mortgages are given when a property has both a commercial and residential element - such as a shop with a flat above it. Semi-commercial mortgages are usually given out by a commercial mortgage lender - so if the property is occupied by tenants, you would need to look into a commercial investment mortgage. 

Compare commercial investment mortgages

FC Funding is a leading provider of commercial investment mortgages. We use our established connections with high street and online commercial lenders to find our customers the best rates. You'll be able to compare commercial investment mortgage rates, fees and T&Cs - and benefit from mortgage advice from our expert team. 

If you're looking to compare commercial investment mortgages, give the FC Funding team a call on 01202 937880 to discuss your circumstances. 

Lending Criteria

Banks will consider the following when choosing to make funds available for a commercial mortgage:

  • Loan to Value
  • Credit Scoring
  • Serviceability
  • Sector Experience
  • Property Type
  • Sector Type
  • Interest Rates

Certain lenders will accept outside income if the serviceability of the commercial mortgage is tight.

Frequently Asked Questions


A commercial mortgage is used to purchase or re-mortgage a property for commercial purposes. As a leading commercial mortgage broker, FC Funding’s experienced team will help you find the appropriate option for your business.

As commercial mortgages are used for business purposes, limited companies, SPVs, LLPs, partnerships and sole traders can apply for a commercial mortgage (although this will vary between lenders). In some circumstances, those with impaired credit and business start-ups may also be able to apply for a commercial mortgage.

You’ll pay a higher interest rate on a commercial mortgage, as they’re considered a higher risk to lenders compared to a residential mortgage. Even if you have a bad credit rating, you should still be able to apply for a commercial mortgage, but you’ll probably have to pay a higher interest rate to reflect the risk the lenders will take.

Typically, due to the higher risk profile, commercial lending is more expensive than residential lending. Factors affecting the interest include:

  • The LTV ratio
  • Business credit history
  • Trading experience
  • Business profitability

No, as repayment commercial mortgages are available. However, interest only commercial mortgages are available for borrowers who prefer to repay their loan in full at the of the month (rather than making monthly capital repayments).

Average commercial mortgage interest rates fall between 3.5% and 6%.

Yes – we are a credit broker (and not a lender) and we are authorised and regulated by the Financial Conduct Authority (FCA) with FRN number 674204. We treat our customers in compliance with the strict criteria laid out by the FCA, whose primary aims include the protection of consumers.

Yes – when you assume a commercial mortgage, your business takes on the existing mortgage of the property it is purchasing.

Yes – the interest on your commercial mortgage is tax-deductible. This means if your property increases in value, your capital could also rise.

There are many options available for those looking for finance for commercial property and it’s important to choose the right option for your business. FC Funding offer a wide range of commercial property finance products and our services can be tailored to your specific requirements.

Minimum loan sizes typically start at £20,000 and can range anywhere into and beyond £25 million (subject to criteria). For more information click here.

Commercial mortgages are typically offered with a maximum loan to value ratio (LTV) of 70-80% for an owner-occupied mortgage or 75% for commercial investment. This means committing to a deposit of between 20% and 40%, depending on the risk level.

With FC Funding, however we can offer up to 100% LTV commercial mortgage financing. Contact FC Funding to learn more.

The fees and charges for commercial mortgages vary across markets, however as a general rule-of-thumb you should expect the following:

  • Application fee
  • Valuation fee
  • Arrangement fee
  • Legal fees
  • Exit fee
  • Administration fees - Any additional costs charged by either lender or broker

With FC Funding, however we can offer up to 100% LTV commercial mortgage financing. Contact FC Funding to learn more.

Yes, provided the residential property is used for commercial purposes e.g. to generate rental income as a landlord.

This will vary between lenders but there are a range of property types such as:

  • Shops
  • Hotels
  • Offices
  • Factories
  • Warehouses
  • Restaurants
  • Pubs
  • B&Bs

This will vary between lenders but as a general rule-of-thumb you should expect to have to provide the following documents:

  • Projected business income
  • Ability to pay the deposit and source of funds
  • Income (full accounts of trading business) credit and assets
  • 2 years’ trading accounts
  • Last 3 months’ business bank statements
  • Proof of ID (certified copy of passport or driving licence)
  • Proof of residency (utility bill or bank statement)

Why should I choose First Commercial Funding?

FC Funding is one of the leading commercial brokers and commercial mortgage lenders in the country and our wide-ranging expertise means we can guarantee a tailor-made package to suit your requirements. We have helped hundreds of business owners all over the UK find the right funding to grow their company – find out more from our testimonials.

Commercial Mortgage Brokers You Can Rely On

Whether you're looking for somewhere to run your business or a holiday let, our commercial mortgage brokers not only source a mortgage with rates that suit you best but will also work with your team to ensure that the entire process runs smoothly and schedule.

Commercial business mortgages can have a positive effect on asset appreciation and over the term of your loan, it is likely that the value of the building will increase.

As an experienced commercial mortgage broker, we can help you achieve your goals with up to 100% LTV achievable with additional security and the most competitive rates guaranteed. Adverse accounts and credit history problems can also be accounted for.

Due to the fact that this is an ever-changing marketplace, it is always worth calling First Commercial Funding to discuss the possibilities of a loan being accepted and to ascertain the appetite of the lenders.

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