What a business mortgage costs
Every business mortgage is priced on the strength of the trading business and the premises together. Because we work across the market, we place each case with the lender whose criteria and rate fit your accounts, your sector and the building, rather than sending you to a single high-street desk.
On a £750,000 owner-occupied unit at 75% loan to value, the mortgage is £562,500 and the deposit is £187,500 plus costs such as the arrangement fee, valuation, legal fees and stamp duty. The rate and term depend on your accounts and the premises. This is an illustration, not a quote.
Four things that move the price
Your accounts and profits
Lenders price on how comfortably the business covers the payments from trading. Strong, consistent figures earn a keener rate and a higher loan to value.
Loan to value
A larger deposit lowers the loan to value and usually improves the rate. Most owner-occupier deals sit at 70% to 80% for a strong trading business.
The premises and sector
A standard, easily resold building prices better than a specialist one. Some sectors, such as established professional practices, attract keener terms.
The structure
A term mortgage, a remortgage, a pension purchase and short-term bridging are priced on different bases, from a margin over base rate to a monthly rate.
Rates & costs: FAQs
What rate will I pay on a business mortgage?
There is no single rate. Owner-occupier business mortgages generally start from around 6%, priced on your accounts, the loan to value, the term and the premises. We compare the lenders whose criteria fit your deal and show you the terms that come back rather than a headline figure.
How much deposit do I need?
For a strong trading business, lenders typically advance 70% to 80% of the value, so plan for a deposit from around 20% to 30%. A larger deposit lowers the loan to value and usually improves the rate. The exact figure depends on your accounts and the premises.
How is bridging priced?
Bridging is quoted as a monthly interest rate, commonly around 0.75% to 1.1% per month, plus an arrangement fee. Interest is often rolled up and repaid when the premises refinance onto a term mortgage or when a sale completes. It is short-term finance for a fast or competitive purchase.
What fees should I expect?
Expect a lender arrangement fee, typically 1% to 2%, plus valuation and legal costs, and stamp duty land tax on a purchase. Where a broker fee applies we tell you before you commit. There is no charge to make an enquiry.
Get indicative terms for your premises
Send us the price or value, your deposit and how the business trades, and we will come back with indicative terms from the lenders that fit.