When you're buying a building for your business, commercial mortgage rates, the interest rates lenders charge on loans for business properties like offices, retail spaces, or warehouses. Also known as business property loans, these rates directly impact your monthly payments and long-term costs. Unlike home mortgages, commercial loans don’t follow the same rules—rates are higher, terms are shorter, and lenders look closely at your business’s cash flow, not just your credit score.
What you pay isn’t just about the bank’s policy. commercial property financing, the process of securing a loan to purchase or refinance a business building. Also known as commercial real estate lending, it’s shaped by the building’s location, age, tenant quality, and even the local economy. A well-occupied office in Manchester will get better rates than an empty warehouse in a declining area. Your business’s financial health matters too—if you’ve got steady income and low debt, lenders see you as lower risk and will offer better terms. business loan interest, the cost of borrowing money for commercial purposes, calculated as a percentage of the loan amount. It’s not fixed—it changes with the Bank of England base rate, inflation, and market demand for commercial space.
Many business owners assume they need a huge down payment, but that’s not always true. Some lenders offer 70% loan-to-value deals if your business has strong cash flow. Others require 30% down but give you a 20-year term instead of 10. The type of property matters too—retail spaces often have higher rates than medical offices because tenant turnover is riskier. And don’t forget fees: arrangement fees, legal costs, and valuation charges can add thousands to your upfront cost.
Commercial mortgage rates aren’t just numbers on a page—they’re tied to your business’s survival. A 0.5% difference in rate on a £500,000 loan means over £100,000 extra over 20 years. That’s money you could use to hire staff, upgrade equipment, or expand. Knowing how these rates work helps you negotiate better, avoid bad deals, and pick the right lender.
Below, you’ll find real examples from UK business owners who’ve navigated these loans—what worked, what didn’t, and how they saved money. Whether you’re buying your first shop, upgrading your workshop, or expanding into a new building, these insights will help you make smarter decisions.
