Posted December 8, 2021

What Can Commercial Mortgages Be Used For?


As we continue transitioning into a post-COVID era, and with a sense of normality resuming, the commercial property market is on the rise again.

The pandemic has changed the lending and investing landscape. Earlier this year, some lenders were reducing their LTVs to 65% or lower because they were being more cautious about their lending approach.

However over the past few months, we’ve seen a flow of commercial mortgage completions, despite some lenders and banks remaining hesitant to lend in certain sectors.

What is a commercial mortgage?

A commercial mortgage is a loan secured against a property for business purposes. They are used for long-term plans and tend to last between 3 and 25 years.

Commercial mortgages can be used for many reasons. This includes: 

  • Funding the purchase of business premises
  • Buying an existing business
  • Releasing capital from an existing building to reinvest
  • Buying investment properties
  • Refinancing  

Similar to residential mortgages, commercial mortgages can be either fixed or variable rate. Although variable rate mortgages are more common, it is also possible to find fixed rate loans. Without having to worry about interest rates rising, you can accurately structure your business’ finance with more confidence.

What are the different types of commercial properties?

There are many different commercial properties, including:

  • Offices
  • Retail – including retail stores, shopping centres, high street shops
  • Industrial – factories and warehouses
  • Leisure – restaurants, pubs, hotels, sport facilities
  • Healthcare – hospitals and medical centres  

What are semi-commercial properties?

A semi-commercial mortgage is available for Limited Companies, partnerships and individuals who want to purchase a property that has both residential and commercial elements. An example of this would be a store or shop with a flat above.   

A recent case study

Recently, our Director Paul Atkinson and the commercial mortgage team helped source commercial finance worth £245,000 for a client based in Newcastle-Upon-Tyne. The client needed to refinance a semi-commercial, non-essential retail property and were looking to redeem a private funder loan that they had taken out on their security property.

Our commercial mortgage team were able to guide our client through the entire process, using our strong relationships with lenders to find the best solution.

How we can help

If you’re searching for finance for your next commercial property, we can help!

Our team of specialist finance brokers can help you find the right financial solution to suit your exact requirements.

Speak to our team today on 0121 309 0444 or send an email to