Commercial mortgages
Compare Commercial
Mortgages & Bridging
What we do
Compare Advantage is a free comparison service. Tell us about the property and what you want to do with it, and our partner, FCA-authorised broker Halo Corporate Finance, checks your enquiry against the 130+ lenders on its panel, from high street banks to specialist commercial and bridging lenders.
- Shops, offices, workshops, units and mixed-use property
- Owner-occupied, investment or refinance
- Bridging for auctions, refurbishments and quick purchases
Prefer to talk? Call 0330 057 7175
- 130+ lendersOn our partner’s panel
- £5k to £1mLoans and asset finance
- One enquiryInstead of one per lender
- FCA-authorised partnerHalo Corporate Finance
- Free to enquireNo obligation to apply
Compare before you apply
Commercial property is where lenders differ most
Residential mortgages are fairly standard. Commercial ones are not. Each lender has its own view on property types, locations, deposits and the businesses it likes to lend to, and a property one lender declines may suit another perfectly. Your own bank is a sensible first call, but it is one view. Checking the wider panel shows you what else is possible before you commit to a purchase.
- 1
Tell us once
Two minutes on the form: how much, what it is for and a few details about the business.
- 2
The panel is checked
Halo Corporate Finance matches your enquiry against the 130+ lenders on its panel.
- 3
You choose
Halo talks you through the options that fit. You decide whether to apply. There is no obligation.
What to compare
- Your own bank against the panel. Your business bank may lend, but commercial property appetite differs widely between banks, challenger banks and specialist lenders.
- The deposit each lender needs, which depends on the property type, its condition and whether you will trade from it or let it.
- Fixed or variable, and what it costs to leave early. Commercial mortgages often carry early repayment charges for the fixed period.
- All the fees, including arrangement, valuation and legal costs, which on commercial property are usually paid by the borrower.
- The exit, for a bridging loan. How the bridge will be repaid, by a sale or a long-term mortgage, matters as much as the rate.
Types of commercial mortgage
Trading from it, letting it, or both?
The first question any lender asks is who will pay the mortgage: your business, or a tenant. It decides how the loan is assessed.
Owner-occupied
You buy premises for your own business to trade from: a shop, a surgery, a workshop or an office. The lender looks at the business’s profits, because they pay the mortgage.
Commercial investment
You buy property to let to another business. The lender looks at the rent, the tenant and the lease, as well as your own position.
Semi-commercial
Mixed-use property, such as a shop with a flat above. Some lenders specialise in it. If you or your family will live in part of it, check the regulation test below.
Regulated or not?
The 40% test
Most commercial mortgages are not regulated by the FCA. But a mortgage on mixed-use property can be. It is a regulated mortgage if:
- At least 40% of the property is used, or intended to be used, as a home
- By the borrower, or a related person: a spouse or civil partner, partner, parent, brother or sister, child, grandparent or grandchild
- Judged at the time the mortgage is taken out
Property used wholly for business cannot be a regulated mortgage. If yours might fall either side of the line, such as a pub with living accommodation or a shop with a family flat above, say so in your enquiry. It changes which lenders and which rules apply.
Budget for it
Stamp duty on commercial property
Tax on a commercial purchase is charged in bands, and the bands differ across the UK. Rates as of November 2026.
| Where | Tax | Non-residential rates on the purchase price |
|---|---|---|
| England and Northern Ireland | Stamp Duty Land Tax | 0% up to £150,000; 2% from £150,001 to £250,000; 5% above £250,000 |
| Scotland | Land and Buildings Transaction Tax | 0% up to £150,000; 1% from £150,001 to £250,000; 5% above £250,000 |
| Wales | Land Transaction Tax | 0% up to £225,000; 1% to £250,000; 5% to £1 million; 6% above £1 million |
Each band applies only to the part of the price within it. Leases are taxed differently. Your solicitor will confirm the figure for your purchase.
Bridging loans
When a mortgage would take too long
A bridging loan is short-term finance secured on property. It costs more than a mortgage, and it is meant to be repaid within months, but it can complete when a mortgage could not.
Auction purchases
Auction terms usually need completion within weeks. A bridge can complete in time, then be replaced by a mortgage.
Refurbishment
Property that a mainstream lender will not mortgage in its current state. Bridge it, improve it, then refinance or sell.
Buying before selling
Moving premises before the old site is sold, so the business does not have to stop trading in between.
Speed
When a good opportunity will not wait for a commercial mortgage to be arranged.
Plan the exit before you borrow
Every bridging loan needs a way out: a sale, or a commercial mortgage once the purchase or the work is done. Lenders judge the exit as closely as the property. Interest is often added to the loan or held back from it rather than paid monthly, so check the total you will owe at the end, and what happens if the sale or refinance takes longer than planned.
Before you enquire
What lenders will want to know
- The property: address, type, price and condition
- Whether you will trade from it, let it, or live in part of it
- Your deposit, and where it is coming from
- Two or three years of business accounts, if you will occupy it
- For investment property, the tenant, the rent and the lease terms
- For bridging, how and when you plan to repay
Fitting out the new premises? Kitchens, shelving and equipment can be funded separately through equipment finance, which keeps more of your cash for the deposit.
What is a commercial mortgage?
A loan secured on commercial property, such as a shop, office, warehouse or workshop, repaid over a set term. Businesses use them to buy their own premises or property to let, and to refinance existing property loans.
Is a commercial mortgage regulated?
Usually not. A mortgage is regulated by the FCA only if at least 40% of the property is used, or intended to be used, as a home by the borrower or a close relative. Property used wholly for business cannot be a regulated mortgage. Mixed-use property with a flat you or family live in can be.
How much deposit do I need for a commercial mortgage?
It depends on the lender, the property and whether you will trade from it or let it. Commercial lenders usually want a larger deposit than residential ones, and specialist or unusual property can need more. Halo can tell you what lenders on the panel are asking for your property.
Should I buy my business premises or keep renting?
Buying gives you control, protection from rent rises and an asset, but ties up a deposit and puts the property risk on you. Renting keeps cash free and makes moving easier. Your accountant can help you weigh the tax and cash flow for your business.
Can a limited company get a commercial mortgage?
Yes. Many commercial mortgages are taken by limited companies, and some businesses set up a separate property company. Directors are often asked for personal guarantees.
What stamp duty do I pay on commercial property?
In England and Northern Ireland, non-residential Stamp Duty Land Tax is 0% up to £150,000, 2% from £150,001 to £250,000 and 5% above that. Scotland and Wales have their own taxes and bands. Mixed-use property is usually charged at the non-residential rates.
What is a bridging loan?
A short-term loan secured on property, usually for months rather than years, used to complete a purchase quickly or fund work before longer-term finance is in place. It is more expensive than a mortgage and must have a clear way to be repaid.
What is an exit strategy?
How you will repay a bridging loan at the end of its term, usually by selling the property or refinancing onto a commercial mortgage. Lenders assess the exit as carefully as the property itself.
Are bridging loans regulated?
Some are. A bridging loan secured on a property where at least 40% is, or will be, the borrower’s or a close relative’s home is usually a regulated mortgage. Bridging on purely commercial property usually is not.
Can I raise money against property my business already owns?
Yes. Refinancing or a capital raise against commercial property can release cash for the business. Choose Refinance a commercial mortgage on the form and tell us what the money is for.
Sources
- legislation.gov.uk: Regulated Activities Order, article 61 (regulated mortgage contracts)
- FCA Handbook: PERG 4.4, regulated mortgage contracts
- GOV.UK: Stamp Duty Land Tax, non-residential and mixed-use rates
- Revenue Scotland: LBTT on non-residential property
- Welsh Government: Land Transaction Tax rates and bands
- Halo Corporate Finance: products
- FCA register: Halo Corporate Finance Ltd (FRN 726655)
Written by the Compare Advantage team, Chorley. Facts checked against the sources above on 4 November 2026. This page is general information, not financial advice.
Compare Advantage Ltd (FRN 1028452, company no. 14289362) is an Introducer Appointed Representative of Halo Corporate Finance Ltd (FRN 726655). We introduce business finance enquiries to Halo. We are not a lender and do not give financial advice. If you take out finance, the lender may pay commission to Halo Corporate Finance, and Halo may pay us a fee for the introduction. Finance is subject to status and is available to UK businesses only.