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Top 10 Lenders for a £400,000 Commercial Mortgage in 2026
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Top 10 Lenders for £400,000 Commercial Mortgage
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | One Stop Business Finance | Business owners needing flexible commercial mortgage terms for property purchase | £100,000 to £3,000,000 | interest 1.6% to 3% monthly |
| 2 | Inhale Capital | Investors wanting fast commercial property funding at competitive short-term rates | £0 to £2,000,000 | interest 1.05% to 1.3% monthly |
| 3 | Brightstar | Property investors preferring annual-rate commercial mortgages from £50,000 | From £50,000 | interest 5% to 12% annually |
| 4 | NatWest Bank | Established businesses seeking a high-street bank commercial mortgage | £500 to £10,000,000 | interest 4.5% to 10.5% annually |
| 5 | Virgin Money | Trading businesses needing a bank commercial mortgage from a recognised lender | £30,000 to £10,000,000 | interest 4.5% to 10.5% annually |
| 6 | HSBC Bank | Included for comparison; maximum loan sits below the £400,000 threshold | £1,000 to £300,000 | interest 8.6% to 11.3% annually |
| 7 | Barclays | Businesses wanting a commercial mortgage with substantial high-street lending capacity | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 8 | Shire Leasing | Commercial property buyers exploring alternative lending options for smaller purchases | £5,000 to £750,000 | interest 4% to 11% monthly |
| 9 | Shireassetfinance | Investors needing swift commercial mortgage decisions from alternative finance providers | £5,000 to £750,000 | interest 4.5% to 12% monthly |
| 10 | MT Finance | Property investors seeking competitive monthly rates on larger commercial mortgages | £50,000 to £10,000,000 | interest 0.89% to 1.05% monthly |
A commercial mortgage is a secured loan that uses a business property as collateral, allowing you to purchase or refinance commercial premises while spreading repayments over a longer term. For business owners and investors, this type of funding typically offers lower interest rates than unsecured borrowing because the lender holds a legal charge over the asset. At £400,000, this borrowing level often supports the acquisition of smaller office units, retail spaces, or light industrial premises.
Choosing the best lender for a commercial mortgage goes beyond headline rates. The loan-to-value ratio each lender offers determines how much deposit you need upfront. Arrangement fees, valuation costs, and legal fees vary and affect the total cost of borrowing. Early repayment charges matter if you plan to exit or refinance before the fixed period ends. For a £400,000 commercial mortgage, lender appetite for your specific property type often becomes the deciding factor.
Important note:
Funding Agent
Published loan rangeFrom £10,000 to up to £1,000,000
Rate typeInterest from 6.8% annually
Why it is included:It is included because many business owners need to compare several finance routes before choosing where to apply.
Funding Agent can help businesses compare suitable options across a lender panel, especially when eligibility depends on turnover, sector, trading history, credit strength and available documents.
Best use case: When the borrower wants to avoid applying to one lender at a time.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Why it stands out
- Useful when a business wants to compare lender fit rather than guess which lender to apply to first.
- Can help position the application around the funding purpose, trading profile and available documents.
- Works well as a conversion route for readers who are unsure whether a direct lender will approve a larger unsecured facility.
Need to know
- Funding Agent is a broker, not a lender.
- The lender, not Funding Agent, sets the final rate, term, fees and approval decision.
- The best match may be unsecured, secured, revolving credit, invoice finance or another product depending on the case.
Expert take
Funding Agent is a useful honourable mention for business owners who want to compare lender options before submitting a full application. A larger unsecured loan is not always approved by the first lender a business finds, so understanding lender fit early can reduce wasted time and avoid unnecessary declines.
One Stop Business Finance
Published loan range£100,000 to £3,000,000
Rate typeinterest 1.6% to 3% monthly
Overview: A commercial mortgage through One Stop Business Finance can complete in as little as five days, suiting buyers who value speed over headline rate. The lender funds property-backed loans from £100,000 to £3,000,000 across secured and term structures. Monthly interest pricing rather than annual rates pushes the effective cost above a traditional bank mortgage.
Best next step: Compare secured commercial property options
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Funding can complete within five days
- Secured lending up to £3 million
- Flexible term loan structures available
Need to know
- Monthly rates exceed bank mortgages
- Property security is required
- Personal guarantee may be needed
Expert take
A flexible secured lender that moves faster than high-street banks. For a £400,000 commercial property purchase, the five-day timeline is the real draw; you trade a higher monthly rate for certainty of completion.
Source:https://www.osbf.co.uk/
Inhale Capital
Published loan range£0 to £2,000,000
Rate typeinterest 1.05% to 1.3% monthly
Overview: From 1.05% monthly, Inhale Capital sits among the more competitive short-term property lenders for commercial deals. Funding can land within 24 hours for urgent acquisitions or refinances. The model suits borrowers who need to move quickly and have a clear exit plan, whether that is a refinance or sale.
Best next step: Explore short-term commercial property funding
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Monthly rates start from 1.05%
- Funding available within 24 hours
- Lends up to £2 million
Need to know
- Short-term bridging model only
- Clear exit strategy required
- Valuation costs apply
Expert take
A short-term property lender built for speed. On a £400,000 commercial mortgage bridging case, the low entry rate and same-day decision give buyers genuine negotiating power when vendors want a fast exchange.
Brightstar
Published loan rangeFrom £50,000
Rate typeinterest 5% to 12% annually
Overview: Brightstar structures commercial property loans with annual interest rates from 5%, which makes cost comparison against bank mortgages straightforward for a long-term hold. The lender starts from £50,000 and decisions can arrive within 24 hours. Rates climb to 12% for higher-risk profiles, so credit strength dictates the final pricing.
Best next step: Check commercial mortgage rates from 5% annually
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Annual rates from 5% for strong cases
- Fast decisions in 24 hours
- No published maximum loan size
Need to know
- Rate rises with risk profile
- Property-backed security required
- Higher-risk cases may reach 12%
Expert take
A bridging-to-term hybrid that quotes annual rates, helping borrowers benchmark against bank mortgages. For a £400,000 commercial property, the 5% starting rate gives a clear comparison point, and the 24-hour decision keeps momentum in a competitive purchase.
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NatWest Bank
Published loan range£500 to £10,000,000
Rate typeinterest 4.5% to 10.5% annually
Overview: NatWest ranks among the most established high-street names for commercial mortgages, with annual rates starting around 4.5% and facilities stretching to £10 million. Underwriting is thorough: full trading history reviews, affordability modelling and property valuation all add time, though the eventual rate often rewards the patience.
Best next step: Speak to a broker about NatWest commercial mortgages
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Annual rates from around 4.5%
- Lends up to £10 million
- Long-term mortgage terms available
Need to know
- Full trading history review needed
- Affordability modelling required
- Bank underwriting takes longer
Expert take
A traditional clearing bank with deep commercial mortgage capability. For a £400,000 property purchase, NatWest's low starting rate and long-term repayment structure set the benchmark, provided your trading record and accounts withstand the underwriting scrutiny.
Source:https://www.natwest.com/business/loans-and-finance.html
Virgin Money
Published loan range£30,000 to £10,000,000
Rate typeinterest 4.5% to 10.5% annually
Overview: Virgin Money opens its commercial mortgage book at £30,000 and goes to £10 million, signalling broad appetite for property lending across the SME spectrum. Annual rates start around 4.5%, aligning with high-street pricing for standard cases. Expect bank-level due diligence; trading history, affordability checks and property valuation all feed into the credit decision.
Best next step: Check Virgin Money commercial mortgage rates
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Broad lending range up to £10M
- Annual rates from circa 4.5%
- Established high-street brand
Need to know
- Full bank underwriting applies
- Trading history required
- Valuation costs borne by borrower
Expert take
A high-street lender with a wide commercial mortgage appetite. For a £400,000 property deal, Virgin Money brings brand recognition and competitive starting rates alongside the thoroughness and timeline you would expect from any mainstream bank.
Source:https://uk.virginmoney.com/business/business-borrowing/
HSBC Bank
Published loan range£1,000 to £300,000
Rate typeinterest 8.6% to 11.3% annually
Overview: HSBC commercial mortgage rates start from 8.6% annually, placing the bank at the upper end of high-street pricing for business property loans. Published standard facilities reach £300,000. The bank applies thorough credit assessment and favours established trading businesses with demonstrable affordability and clean account history.
Best next step: Enquire about HSBC business mortgage options
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Global bank with deep capital reserves
- Relationship pricing for existing customers
- Wide business banking ecosystem
Need to know
- Standard products cap at £300k
- Rates above some high-street peers
- Established trading record expected
Expert take
A global bank whose standard commercial mortgage book skews smaller. For a £400,000 requirement, an existing HSBC relationship paired with strong financials stands the best chance of unlocking terms beyond the published range.
Source:https://www.business.hsbc.uk/en-gb/finance-and-borrowing
Barclays
Published loan range£1,000 to £25,000,000
Rate typeinterest 8.5% to 14.9% annually
Overview: Barclays writes commercial mortgages from £1,000 to £25 million, making it one of the most scalable high-street options for business property lending. Annual rates range from 8.5% to 14.9%, reflecting a pricing model that weighs property type, borrower strength and loan-to-value. The annual rate band starts higher than some high-street peers, so comparing total cost against other bank options is wise.
Best next step: Compare Barclays business mortgage rates
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Massive lending capacity to £25M
- Well-established high-street lender
- Secured and term loan options
Need to know
- Annual rates start at 8.5%
- Full bank underwriting required
- Property valuation at your cost
Expert take
A high-street heavyweight with commercial mortgage capacity that dwarfs most competitors. For a £400,000 property purchase, Barclays pairs genuine long-term banking credentials with lending capacity few can match; headline rates reflect risk-based pricing that may land above some peers.
Shire Leasing
Published loan range£5,000 to £750,000
Rate typeinterest 4% to 11% monthly
Overview: When high-street banks decline, Shire Leasing's commercial mortgage product offers an alternative path for property-backed business borrowing. The lender funds up to £750,000 across secured and term structures, with published monthly rates from 4%. Monthly pricing means the annualised cost runs significantly higher than a traditional commercial mortgage, so comparing total repayment is essential.
Best next step: Check Shire Leasing commercial mortgage terms
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Lends up to £750,000
- Broader criteria than banks
- Multiple product types available
Need to know
- Monthly rates mean high annual cost
- Asset finance crossover lender
- Security and valuation required
Expert take
A multi-product lender where commercial mortgages sit alongside asset finance and revenue-based facilities. For a £400,000 property deal, Shire Leasing may accept cases banks decline, making the monthly-rate structure worth weighing against total annual cost before committing.
Shireassetfinance
Published loan range£5,000 to £750,000
Rate typeinterest 4.5% to 12% monthly
Overview: Shireassetfinance turns commercial mortgage decisions around in as little as four hours, placing it among the fastest responders for time-sensitive property purchases. The lender quotes monthly rates from 4.5% across a loan range reaching £750,000. Borrowers who need an urgent decision, for example at auction, may find the speed offsets the higher monthly pricing model.
Best next step: Get a four-hour commercial mortgage decision
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Decisions possible in four hours
- Lends up to £750,000
- Suits auction and time-critical buys
Need to know
- Monthly rates from 4.5%
- High annualised cost
- Short-term lending model
Expert take
A speed-first lender whose four-hour turnaround changes the game for auction purchases. For a £400,000 commercial property bought under time pressure, the rapid decision defines the proposition; factor the monthly-rate cost into your exit plan early.
MT Finance
Published loan range£50,000 to £10,000,000
Rate typeinterest 0.89% to 1.05% monthly
Overview: At 0.89% monthly, MT Finance undercuts most bridging competitors on rate for commercial property-backed lending. The loan range spans £50,000 to £10 million, and decisions typically land within 24 hours. This is short-term funding built for speed and competitive pricing; the borrower needs a credible exit strategy, whether a sale or take-out refinance.
Best next step: Compare MT Finance bridging rates
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Monthly rates from just 0.89%
- Lends up to £10 million
- Decisions within 24 hours
Need to know
- Short-term bridging only
- Clear exit strategy essential
- Property security required
Expert take
A large-ticket bridging specialist with rates that compete aggressively at the lower end. For a £400,000 commercial property, MT Finance's combination of low monthly pricing and fast decision-making suits buyers who have a refinance or disposal lined up within the term.
Source:https://www.mt-finance.com/
Commercial Mortgage Calculator
How LTV ratios affect your £400,000 commercial mortgage deposit
Loan-to-value (LTV) ratios directly determine how much deposit you need for a £400,000 commercial mortgage. Among the lenders on this list, maximum LTVs vary considerably.
One Stop Business Finance and Inhale Capital both offer up to 75% LTV, meaning you would need a £100,000 deposit on a £400,000 purchase. MT Finance caps LTV at 70%, requiring a £120,000 contribution from you. Brightstar stands out by offering up to 100% LTV, which could eliminate the cash deposit requirement entirely, though additional security may still be needed.
A higher LTV reduces your upfront cash outlay but typically comes with a higher interest rate. Lenders assess the property type, location and your trading history when setting the maximum LTV they will offer.
Comparing interest rates for a £400,000 commercial mortgage
Commercial mortgage rates fall into two distinct bands on this list. Specialist short-term lenders quote monthly rates, while high-street banks quote annual rates. Understanding this difference is critical when comparing offers.
MT Finance publishes rates from 0.89% to 1.05% per month. Inhale Capital sits at 1.05% to 1.3% per month, and One Stop Business Finance ranges from 1.6% to 3% per month. These monthly-rate products are typically bridging-style facilities with terms between one month and two years.
For longer-term mortgages, NatWest and Virgin Money both quote 4.5% to 10.5% annually, with maximum terms reaching 25 years and 20 years respectively. Barclays lists rates from 8.5% to 14.9% annually with terms up to 25 years. Brightstar offers 5% to 12% annually.
What lenders assess for a £400,000 commercial mortgage application
Lender requirements for a £400,000 commercial mortgage differ by provider type. High-street banks typically set stricter eligibility thresholds than specialist lenders.
NatWest expects a minimum turnover of £300,000. Virgin Money requires at least one year of trading history. Personal guarantees are a common requirement across the board, with One Stop Business Finance, Inhale Capital, Brightstar, NatWest and Virgin Money all confirmed as requiring them.
One Stop Business Finance publishes the most accessible criteria, with no minimum turnover and no minimum trading history, though this reflects its short-term bridging product rather than a traditional commercial mortgage. The property itself also matters: lenders will assess its value, condition, location and potential resale value before approving your £400,000 facility.
How to secure the best £400,000 commercial mortgage deal
Getting the right deal on a £400,000 commercial mortgage comes down to preparation and comparing the full picture, not just the headline rate.
First, clarify whether you need a long-term mortgage or short-term bridging finance. Traditional bank mortgages from NatWest or Barclays suit owner-occupiers and long-term investors, while lenders like MT Finance and Inhale Capital serve shorter-term needs. The rate type (monthly vs annual) will heavily influence your total cost.
Check LTV caps carefully. If you can put down a larger deposit, you may access lower rates. Have your accounts, property details and business plan ready before approaching lenders. Using a broker can help you compare options from both high-street banks and specialist providers in one place, saving time and potentially unlocking better terms on your £400,000 facility.
