Commercial mortgage rates are calculated based on several factors and can vary between lenders depending on the details of the application. Unlike residential mortgages, commercial lending is more flexible, with lenders offering different products, rates, and terms based on their own criteria and risk assessment. The commercial mortgage rates shown in our comparison tool are sourced directly from lender portals and reflect available products based on the information provided.
Key factors that can affect the rate offered include:
Loan-to-Value (LTV)
Lower LTV applications often qualify for more competitive commercial mortgage rates, as lenders generally consider them lower risk.
Property Type
Commercial mortgage rates can vary depending on the type of property being financed. For example:
- Offices and retail units may attract more competitive rates
- Semi-commercial or mixed-use properties may have slightly higher pricing
- Specialist properties such as hotels, care homes, or leisure venues may require bespoke lender assessment
Business Financial Strength
Lenders review your financial profile before offering a product, including company accounts, business turnover and cash flow, trading history, and existing financial commitments. A strong financial position can widen the range of products and rates available to you.
Loan Term & Repayment Structure
The loan term and repayment type can also affect pricing. Some lenders may offer capital repayment options, while others may provide interest-only products depending on the applicant profile and property type.
Lender Criteria
Every commercial lender has its own lending criteria and product range. As a result, rates and terms can differ significantly between lenders, even for similar applications. Comparing multiple lenders can help identify the most suitable commercial mortgage options for your circumstances.
