Top 10 Lenders to Secure a £350,000 Commercial Mortgage in 2026

A commercial mortgage is a loan secured against a business property rather than a residential one. When you apply for a £350,000 commercial mortgage, the lender provides the funds to purchase or refinance the property and in return takes a legal charge over it. You then repay the loan in monthly instalments over an agreed term, typically anywhere from 3 to 25 years. The property itself acts as security, which means the lender could repossess it if you fail to keep up with repayments. Commercial mortgages can be used for owner-occupied premises, buy-to-let investments, or mixed-use properties.

Most commercial mortgage lenders in the UK will ask for a deposit of between 25% and 35% of the property value, though this varies depending on the lender and your circumstances. For a £350,000 property, that could mean putting down anywhere from around £87,500 to £122,500. Some specialist lenders may offer higher loan-to-value ratios for particularly strong applications, while others may require a larger deposit for higher-risk sectors or less established businesses. The property type, its location, and your trading history all influence the deposit a lender will ask for.

It can be more challenging but it is not impossible. Most high street lenders prefer businesses with at least two to three years of trading history and proven financial accounts. However, specialist and challenger lenders are often more flexible and may consider applications from younger businesses, particularly if the directors have strong personal credit profiles, relevant industry experience, or can offer additional security. You may also find that a larger deposit is required and the interest rate could be higher to reflect the perceived additional risk. Speaking with a commercial finance broker who understands the full range of lenders can make a real difference here.

Commercial mortgage rates are generally higher than residential mortgage rates because lenders view business property lending as carrying more risk. Where a residential mortgage might be available at a lower rate, a commercial mortgage typically comes with a margin above the Bank of England base rate or the lender's cost of funds. The exact rate you are offered will depend on the property type, your business's financial strength, the loan-to-value ratio, and the term length. Arrangement fees on commercial mortgages also tend to be higher, commonly charged as a percentage of the loan amount rather than a flat fee.

A commercial mortgage is designed as a long-term funding solution, typically repaid over 3 to 25 years, and is suited for purchasing or refinancing a property your business intends to occupy or hold as an investment. Bridging finance, by contrast, is a short-term loan usually lasting between 3 and 24 months, intended to fill a temporary funding gap. It can be arranged much faster than a commercial mortgage — often within days rather than weeks — but comes with higher interest rates and fees. Businesses sometimes use bridging finance to secure a property quickly at auction and then refinance onto a commercial mortgage once the property is in a more lendable condition.

Start by considering the interest rate type — whether you prefer a fixed rate for budgeting certainty or a variable rate that might offer savings if market rates fall. Pay close attention to the arrangement fees, valuation costs, and legal fees, as these can differ significantly between lenders. Check whether early repayment charges apply and how long they last, especially if you think you might want to refinance down the line. It is also worth asking whether the lender has experience in your specific sector, as some specialise in certain property types like industrial units, retail premises, or offices. Finally, consider the quality of service and speed of decision-making — a lender who understands your business can make the process far smoother than one who treats every application the same way.