Finance for the premises, not just the home.
Buying your trading premises, investing in commercial property, or financing a flat above a shop — commercial and semi-commercial lending, placed with lenders who understand business income.
The three cases we see most
Commercial lending is secured against property used for business. It usually falls into one of three shapes: buying your own trading premises (owner-occupied), investing in commercial property to let, or financing a mixed-use building with both commercial and residential parts.
- Owner-occupied — your business buys the premises it trades from, often on more favourable terms than investment lending.
- Commercial investment — buying units, offices or retail to let to business tenants, assessed largely on the rental income.
- Semi-commercial / mixed-use — for example a flat above a shop, needing a lender comfortable with both elements.
How it’s assessed
Commercial lending looks at the business, the property and the deal rather than a personal payslip — so running your own company is the norm here, not an obstacle. Deposits are typically larger than residential, often 25–40%, and we package your accounts and the proposal for the most suitable lender.
- Owner-occupied, investment and mixed-use are the main routes.
- Assessed on the business and property, not a personal payslip.
- Larger deposits than residential — often 25–40%.
- Mixed-use needs a lender comfortable with both elements.
Commercial mortgages are generally not regulated by the FCA. Lending depends on the business, property and proposal. This page is general information, not a recommendation.
Owner-occupied or investment — the distinction that shapes everything
Commercial lending splits along one line first. An owner-occupied case is where your own business trades from the premises, so the lender looks at the business's accounts and its ability to service the debt. An investment case is where you let the property to a tenant, so the lender looks at the lease and the rental income instead.
The two are assessed differently, priced differently and documented differently, which is why establishing which one you are at the outset saves a great deal of wasted effort. Semi-commercial property — a shop with a flat above, for instance — sits between the two and is treated differently again, often more favourably than pure commercial.
What lenders want to see
Expect more scrutiny of the business than of you personally. For an owner-occupied case that usually means trading accounts, management figures, and a view on how the premises support the business plan. For an investment case it means the lease itself — the tenant's covenant strength, the unexpired term, and the rent's reliability.
Deposits are typically larger than on residential lending, terms are often shorter, and rates are usually priced case by case rather than from a published table. Personal guarantees from directors are standard, so the company structure does not put you fully at arm's length from the borrowing.
Where contractors and directors come to this
Most often in one of three situations: buying the premises the company already rents, so the rent becomes an asset rather than a cost; acquiring a mixed-use property where the residential element is part of the appeal; or expanding a property portfolio beyond what buy-to-let lending covers.
In each case the structure question arrives early — personal name, trading company, or a separate vehicle — and it carries tax consequences that a mortgage adviser cannot settle alone. Take it with an accountant first, then bring the funding options alongside. SPV or personal name covers the equivalent question on the residential investment side.
Commercial lenders we work with — a selection
Lender guides: Halifax · Barclays · HSBC · NatWest · Nationwide · Accord · Clydesdale · Yorkshire BS · Kensington See how we place cases →
Commercial mortgages, answered
What is a commercial mortgage?+
A loan secured against property used for business — your own trading premises (owner-occupied) or a commercial property you let to others (investment). Terms, deposits and rates differ from residential lending and are assessed largely on the business or the rental income.
What is a semi-commercial (mixed-use) mortgage?+
It finances a property with both commercial and residential elements — classically a flat above a shop. These mixed-use cases sit between residential and commercial lending and need a lender comfortable with both, which is where specialist placement helps.
How much deposit do I need?+
Commercial lending typically needs a larger deposit than residential — often 25–40% depending on the property, the business and your experience. Owner-occupied premises can sometimes be financed on more favourable terms than pure investment.
Can a contractor or director get one?+
Yes. Commercial lending is assessed on the business and the property rather than a personal payslip, so running your own company is normal here. We package the business accounts and the deal for the right lender.
How much deposit do I need for a commercial mortgage?+
Typically more than on a residential purchase, and the level varies with the property type, the strength of the business or lease, and the lender. Because commercial lending is priced case by case rather than from a published range, the honest answer comes from putting your specific case in front of lenders.
Are commercial mortgages regulated by the FCA?+
Generally not. Most commercial and semi-commercial lending falls outside FCA regulation, which means the consumer protections that apply to a residential mortgage do not apply in the same way. That makes taking proper advice more important rather than less.
Can I buy the premises my own company rents?+
This is one of the most common reasons directors look at commercial lending, and it is usually treated as an owner-occupied case. The lender assesses whether the business can service the debt, so trading accounts and forecasts carry the weight rather than your personal income.