Commercial & Agriculture Mortgage
Commercial Mortgages: Tailored Solutions with Giles Finance
A commercial mortgage is a specialized loan designed for purchasing or refinancing land or property intended for business purposes. Unlike personal mortgages for residential properties, commercial mortgages are highly bespoke. These products are not off-the-shelf solutions, meaning you cannot apply online or compare rates easily. Navigating the commercial mortgage process requires expert guidance, from the initial enquiry to the final completion stage.
At Giles Finance, we specialize in providing comprehensive support to clients seeking commercial mortgage solutions tailored to their specific business needs. Whether you are an investor looking to expand your portfolio or a business owner seeking premises for your operations, we ensure that every step of the process is smooth and efficient.
Where we advise: we arrange commercial and agricultural mortgages for clients across England and Wales, working from our offices in Willenhall, Dagenham, Rainham and Putney. See areas we cover for the postcodes each office serves.
Types of Commercial Mortgages
There are two primary types of commercial mortgages:
1. Investor commercial mortgage:
An investor commercial mortgage is specifically designed for individuals or businesses purchasing commercial freehold or leasehold properties for investment or rental purposes. This type of loan enables borrowers to generate income through the rental of commercial properties.
Giles Finance negotiates investor commercial mortgages for both refinancing and purchase purposes. We work with a diverse range of lenders, including major banks, mutuals, building societies, niche providers, and specialized commercial mortgage lenders. By carefully selecting the appropriate lender, we tailor each mortgage to meet the unique needs of the borrower. Our commitment to personalized service ensures that every investor receives a solution that aligns with their financial goals.
- Pubs, restaurants, take-away units
- Newsagents, Corner shops, Fish & Chip Shops
- Hotels, guest houses, B&B’s, holiday lets
- Industrial units, factories, offices, warehouses
- Supermarkets, Garages, Church Buildings
- Semi Commercial Buildings
- Office Building Mortgages
- Specialist leisure (golf, country clubs, etc)
- Health clubs, Golf Clubs
- Care homes, Nurseries
- Schools
- Agricultural Farms
2. Owner Occupier Commercial Mortgage.
An owner-occupier commercial mortgage is tailored for individuals or businesses purchasing commercial premises for their own use. This allows business owners to secure a property where they can operate their business, offering stability and long-term financial benefits.
At Giles Finance, we work with an extensive range of lenders, including major banks, regional and local building societies, and specialist commercial asset lenders. We ensure that the chosen lender meets the client’s needs without requiring a switch in day-to-day banking, preserving financial flexibility. For many clients, keeping the financing of their commercial mortgage separate from their primary banking account is beneficial, and we help facilitate this separation.
Bespoke Commercial Mortgage Solutions
Every commercial mortgage product offered through Giles Finance is fully tailored to meet the borrower’s specific requirements. We understand that no two businesses are alike, and our approach reflects this uniqueness. Bespoke elements of a commercial loan structure may include:
- Flexible repayment terms tailored to cash flow.
- Competitive interest rates negotiated with a wide range of lenders.
- Loan structures that account for unique borrower circumstances, including investment or operational requirements.
Why Choose Giles Finance for Your Commercial Mortgage?
Giles Finance has extensive experience in navigating the complexities of commercial mortgages. Our team provides expert guidance, ensuring clients receive the best possible financing options. Whether it’s an investor commercial mortgage or an owner-occupier mortgage, we work closely with clients to understand their needs and match them with the most suitable lender.
We pride ourselves on our relationships with a broad spectrum of lenders, including major banks, niche providers, and specialized commercial finance institutions. This network enables us to secure tailored solutions that align with your business goals, whether you’re refinancing, purchasing, or expanding your operations.
Your Path to a Successful Commercial Mortgage
A commercial mortgage is more than just a loan; it’s an investment in your business’s future. At Giles Finance, we’re committed to helping you achieve success by providing customized solutions that work for you. From the first enquiry to the final completion stage, we’re with you every step of the way.
- New business start-ups
- Business turnaround solutions
- Short Term Finance and debt consolidation
- Working Capital raising
- Property improvement
- Business expansion
- Office Building Mortgages
- Conversion to interest-only mortgages and vice versa
- Long-term repayment mortgages with terms up to 30 years
- Fixed, variable, and hedged mortgage rates
Commercial mortgage rates and terms in the UK — what to expect (October 2026)
Commercial mortgage rates are not advertised like residential rates. Each lender prices from the Bank of England base rate (held at 3.75% in September 2026) plus a margin that reflects the property, the borrower’s trading record and the loan-to-value. The table below sets out the indicative ranges we are currently seeing across the lenders we place business with. It is a guide to help you budget, not a quotation — your actual terms will depend on the lender’s assessment of your application.
| Lender type | Typical maximum LTV | Indicative rate (variable) | Typical term | Arrangement fee |
|---|---|---|---|---|
| High-street banks (prime tier) | 60–70% | Base + 2% to 2.75% (c. 5.75% – 6.50%) | 5 – 25 years | 1% – 1.5% |
| Challenger and specialist banks | 75% (80% on owner-occupied trading premises) | Base + 2.75% to 4.75% (c. 6.50% – 8.50%) | 5 – 25 years | 1.5% – 2% |
| Alternative lenders (non-bank, debt funds) | 75–80%, bespoke | Base + 4.25% upwards (c. 8.00% – 12%) | 3 – 20 years | 2% – 2.5% |
| Agricultural / farm mortgage lenders | 60–70% of agricultural value | Base + 2% to 4% (c. 5.75% – 7.75%) | Up to 30 years | 1% – 2% |
| Semi-commercial / mixed use | 70–75% | Base + 2.5% to 4.5% (c. 6.25% – 8.25%) | 5 – 25 years | 1.5% – 2% |
Indicative ranges only, correct as at 2 October 2026, based on lender criteria and recent offers seen by Giles Finance. Two-, three- and five-year fixed rates are available from most lenders; the 2026 norm is a three- or five-year fix on a 20-year term. Moving from 75% to 60% LTV typically saves 50 to 150 basis points on the margin. Valuation and legal fees are payable in addition. Rates and criteria change without notice.
Three things move the rate more than anything else: loan-to-value (every 5% of extra deposit typically improves the margin), the strength of the income covering the loan (rent on an investment property, or trading profit for an owner-occupier), and the type of property — standard retail, office and industrial units price best; licensed premises, care homes and specialist buildings price higher. If you want the detail behind each of these, our complete 2026 guide to commercial mortgages in England and Wales walks through them one by one.
Worked example: buying a £450,000 commercial unit at 70% loan-to-value
A limited company buys a freehold light-industrial unit in Essex for £450,000 to occupy itself. The lender agrees 70% LTV, so the loan is £315,000 and the company contributes a £135,000 deposit from retained profit. The illustrative rate is 7.25% variable over a 25-year term, with a 1.5% arrangement fee.
| Purchase price | £450,000 |
| Loan (70% LTV) | £315,000 |
| Deposit (30%) | £135,000 |
| Arrangement fee (1.5%, can be added to the loan) | £4,725 |
| Monthly payment — capital and interest, 25 years at 7.25% | c. £2,277 |
| Monthly payment — interest only at 7.25% | c. £1,903 |
| Annual cost on a repayment basis | c. £27,320 |
The lender then tests affordability. For an owner-occupier it will usually want the business’s adjusted net profit (EBITDA) to cover the annual mortgage cost by at least 1.25 to 1.5 times — here, roughly £34,000 to £41,000 a year of profit before the mortgage. For an investment purchase the same test is applied to the rent: at an interest-only cost of £1,903 a month, a lender looking for 145% cover would want rent of about £2,760 a month (£33,100 a year). If the rent or profit falls short, the fix is normally a larger deposit, a longer term, or a lender with a lower cover requirement — which is exactly the negotiation we handle.
Figures are illustrative and rounded, assume the rate stays at 7.25% for the full term, and exclude valuation, legal and stamp duty land tax costs. They are not an offer of finance. You can model your own figures with our mortgage repayment calculator.
Commercial mortgage eligibility checklist — what lenders will ask for
Having these ready before the first lender conversation is the single biggest thing you can do to shorten the process. We review the pack with you before anything is submitted.
- Deposit of 25–40% of the purchase price (or equivalent equity on a refinance), with evidence of where it has come from.
- Two to three years of accounts for the borrowing business, plus year-to-date management accounts if the last filed accounts are more than six months old.
- Three to six months of business bank statements.
- A short business plan and cash-flow forecast — essential for owner-occupiers, start-ups and any change of use.
- For investment purchases: the existing lease (or heads of terms), tenant details, rent passing and the schedule of any void periods.
- Property information: address, tenure, floor area, current use class and any planning history. An EPC rating of E or better is required to let commercial property under the Minimum Energy Efficiency Standards, and lenders will ask for it.
- Personal assets and liabilities statement for each director or guarantor, and a CV or track record for property investors.
- Identification and proof of address for all directors, shareholders over 25% and guarantors (anti-money-laundering checks).
- Credit profile: adverse credit does not rule you out, but it narrows the lender panel and raises the margin — tell us early so we place the case correctly first time.
How a commercial mortgage application runs with Giles Finance
- Day 1 – initial call. We take the facts, confirm the realistic LTV and rate band, and tell you which lenders fit. No credit search at this stage.
- Days 2–3 – agreement in principle. We present the case to the chosen lender and obtain indicative terms, usually within 24–48 hours.
- Week 1–2 – full application. Documents from the checklist above go in; the lender instructs a RICS valuation.
- Weeks 3–6 – valuation and credit approval. We deal with valuer queries and any conditions, then the formal offer is issued.
- Weeks 6–10 – legal work and completion. Your solicitor and the lender’s solicitor complete; funds are released. A straightforward purchase typically completes in 8 to 12 weeks from the first call.
If the purchase is time-critical — an auction, a receiver sale or a lease expiry — we can arrange a bridging loan first and refinance onto the commercial mortgage once it is approved. For working-capital needs alongside the property, see our corporate banking and company loans service, and for farms and rural property our dedicated agricultural and farm mortgage page.
Last reviewed: 2 October 2026 by Dennis Galley, Operations Director & Compliance Officer at Giles Finance & Consultancy Services, authorised and regulated by the Financial Conduct Authority (FRN 726857). Commercial mortgages taken for business purposes on wholly commercial property are generally not regulated by the FCA; where the security includes residential accommodation, different rules can apply and we will tell you at the outset. Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Contact Giles Finance today to discover how our tailored commercial mortgage solutions can support your business’s growth and success.
Giles Finance – Your Trusted Partner in Commercial Mortgages.
It is simply a specialist type of mortgage application that requires specialist knowledge. We work with all major commercial mortgage lenders in the UK to provide you expertise and guidance for all your commercial mortgage needs. Call us on 020 8088 2211 to speak to our commercial mortgage teams.
Discuss a commercial mortgage
Commercial Mortgage & Agricultural Farm Mortgage FAQ's
What can a commercial mortgage be used for?
Commercial mortgages can be used to purchase or refinance offices, retail units, warehouses, industrial premises, farmland and other business or investment property.
How much deposit is needed for a commercial mortgage?
Deposits typically start from 25% to 35% of the property value, though this varies by property type, tenant covenant strength and the applicant's trading history.
What is the maximum term for a commercial mortgage?
Commercial mortgage terms commonly run up to 20 or 25 years, though the exact maximum depends on the lender, the property type and the applicant's age or company structure.
Can farmland and agricultural property be mortgaged?
Yes, specialist agricultural mortgages are available for working farms, smallholdings and land, including facilities that account for seasonal income patterns and diversified farm businesses.
How is a commercial mortgage different from a residential mortgage?
Commercial mortgages are individually underwritten based on the property, tenant covenant and business trading position, so rates, terms and criteria vary far more widely than the standardised products seen in residential lending.
Can owner-occupiers and investors both get commercial mortgages?
Yes, owner-occupier commercial mortgages are assessed on business trading performance, while investment commercial mortgages are typically assessed on rental income and tenant strength.
What factors affect the interest rate on a commercial mortgage?
Rates are influenced by the loan-to-value ratio, property type, tenant covenant, lease length, and the applicant's trading or credit history.
Can I get a commercial mortgage for a mixed-use property?
Yes, mixed-use properties such as a shop with flats above are commonly financed, though the lending criteria and rates may differ slightly from a purely commercial or purely residential property.
Is a business plan required for a commercial mortgage application?
For owner-occupier applications, particularly newer businesses, lenders often request a business plan and financial projections alongside trading accounts to support the application.
Can agricultural mortgages fund diversification projects on a farm?
Yes, many agricultural lenders will fund diversification such as farm shops, holiday lets or renewable energy installations alongside core farming borrowing, subject to individual assessment.
Do you arrange commercial mortgages across England?
Yes. Giles Finance is a whole-of-market commercial mortgage broker arranging finance throughout England and Wales. We are based in London and regularly place commercial mortgages for clients in Birmingham, Manchester, Leeds, Liverpool, Bristol, Sheffield, Newcastle, Nottingham, Milton Keynes, Stafford, Wolverhampton and Aylesbury, as well as Cardiff and Swansea in Wales.
Which types of commercial property in England can be financed?
We arrange commercial mortgages for offices, shops and retail units, warehouses and industrial premises, semi-commercial and mixed-use buildings, hotels and guest houses, care homes, restaurants and leisure premises, together with farmland, farms and agricultural buildings across England and Wales. Owner-occupier and investment purchases and remortgages are all covered.
How do I start a commercial mortgage application with Giles Finance?
Call 020 8088 2211 or use the contact form to arrange a free initial assessment. As a whole-of-market broker, Giles Finance compares high street banks, challenger banks and specialist commercial lenders across England and Wales, then manages your application through to completion.