Top 10 Lenders for a £700,000 Commercial Mortgage in the UK (2026)

A commercial mortgage is a loan secured against a commercial property, such as an office, retail unit, warehouse, or industrial premises. With a £700,000 facility, the lender advances the funds and registers a legal charge against the property title. You then repay the loan in monthly instalments, typically over a term of 5 to 25 years, with interest calculated on the outstanding balance. The property serves as security, which means the lender could repossess it if you default. Commercial mortgages can be used to purchase a new property, refinance an existing one, or release equity for business purposes. Most lenders will assess the property's value, its income-generating potential, and your business's financial health before making an offer.

Eligibility varies by lender, but generally you will need to be a UK-registered business, a commercial property investor, or a special purpose vehicle (SPV) set up to hold property. Lenders will typically assess your trading history, credit profile, and the financial performance of your business. For owner-occupied premises, they will review your business accounts and affordability. For investment properties, the focus shifts to rental income and the quality of the tenant. Most lenders expect you to have a deposit, usually starting from around 25% to 30% of the property value for standard commercial mortgages, though this can vary. Sole traders, partnerships, and limited companies can all apply, and some lenders also accept first-time commercial property buyers if the business case is strong.

Interest rates on commercial mortgages depend on several factors including the loan-to-value ratio, the type of property, your business's credit strength, and whether the property is owner-occupied or let to tenants. Rates may be fixed for a set period or variable, often tracking the Bank of England base rate plus a margin. A £700,000 commercial mortgage will generally attract more competitive pricing than smaller loans due to its scale, but the exact rate will be determined by the lender's risk assessment. Repayment terms commonly range from 5 to 25 years, though some lenders may offer longer terms for strong cases. Interest-only periods may also be available, particularly for investment properties where rental income covers the interest payments. Arrangement fees, valuation fees, and legal costs should also be factored into your overall cost assessment.

A commercial mortgage is designed specifically for property purchase or refinance and typically offers longer terms and lower interest rates compared to bridging finance. Bridging loans are short-term solutions, usually lasting 3 to 24 months, and carry higher interest rates, but they can be arranged much faster, making them useful for auction purchases or when timing is critical. A secured business loan, on the other hand, is secured against business assets rather than specifically against property, and may have shorter terms and different lending criteria. For a £700,000 property purchase where you intend to hold the asset long term, a commercial mortgage is usually the most cost-effective option. Bridging finance could serve as a temporary solution if you need to complete quickly and plan to refinance onto a commercial mortgage later. Each option suits different circumstances, and the right choice depends on your timeline, exit strategy, and long-term plans for the property.

Loan-to-value ratios for commercial mortgages in the UK typically range from 70% to 75%, meaning you would usually need a deposit of 25% to 30% of the property's purchase price or valuation. For a £700,000 property, that equates to a deposit in the region of £175,000 to £210,000. Some specialist lenders may offer up to 80% LTV for particularly strong cases, such as prime-location investment properties with quality tenants on long leases. Owner-occupied commercial mortgages sometimes attract lower LTV limits than investment properties because the lender's assessment focuses on business trading performance rather than rental income. The exact deposit required will depend on the property type, location, tenant strength if applicable, and your business's financial profile. Higher deposits generally unlock more competitive interest rates.

When evaluating lenders for a £700,000 commercial mortgage, consider the interest rate and whether it is fixed or variable, the total cost including arrangement and valuation fees, and the repayment term. Look at the lender's experience with your specific property type, as some specialise in offices while others prefer retail or industrial. Check whether they offer flexibility such as overpayment options, interest-only periods, or the ability to borrow more in future. The speed of decision-making and the quality of their underwriting process are equally important, as delays can jeopardise a purchase. Also consider whether the lender requires a personal guarantee, and if so, what level of security they ask for. Working with an experienced commercial finance broker can help you compare offers from high-street banks, challenger banks, and specialist lenders to find the most suitable option for your circumstances.