Specialist Commercial Mortgage Broker

Commercial Buy-to-Let Mortgage Finance for Landlords and Property Investors

A commercial buy-to-let mortgage lets you purchase commercial property as an investment, generating rental income from tenants. Whether you are buying your first commercial investment or expanding a portfolio of buy-to-let properties, our specialist brokers compare mortgage deals across 100+ lenders to find the best rates for your circumstances.

From 6.25%

Interest rate

Up to 75%

Loan-to-value

1-25 years

Mortgage term

£50,000

Minimum loan

What Is a Commercial Buy-to-Let Mortgage?

A commercial buy-to-let mortgage is a specialist mortgage product designed for investors purchasing commercial property or residential property to let to tenants. Unlike a standard buy to let mortgage for a single dwelling, a commercial buy-to-let mortgage covers offices, shops, industrial units, houses of multiple occupation (HMOs), and other property to rent.

A buy-to-let mortgage is similar to a residential mortgage in structure but differs significantly in lending criteria, affordability assessment, and interest rates. Residential mortgages due to different regulatory treatment offer lower rates, but buy to let products provide access to commercial property and potentially higher rental income. Our broker team compares commercial mortgage lenders across our 100+ panel to find the right let mortgage for your property investment.

Residential versus commercial buy-to-let

The commercial buy-to-let market has evolved significantly in recent years, with changes to tax relief, increased regulation, and the growth of limited company ownership all shaping how landlords structure their investments. Understanding the distinction between residential buy-to-let (single dwellings let to individual tenants or families) and commercial buy-to-let (offices, shops, industrial units, or larger residential buildings like HMOs) is essential for choosing the right mortgage product. Our broker team guides you through these distinctions and matches your investment to the optimal lending product from our panel of 100+ mortgage lenders.

Commercial Buy-to-Let Mortgage Rates and Eligibility

Buy to let mortgage rates for commercial property range from 6.25% to 8.50%, depending on the lender, LTV, property type, and landlord experience. Fixed interest rate products offer certainty on mortgage payments for 2-5 years, while variable rates and variable interest products track the Bank of England base rate.

Eligibility for a commercial buy-to-let mortgage requires a minimum deposit, typically a deposit of at least 25% of the property value. Lenders assess the rental income from the rental property against the amount you borrow, most require rental coverage of 125-145% of repayments on your mortgage. Lending criteria include your credit history, portfolio size, and the business case for the investment.

Most lenders will lend up to 75% loan to value on standard buy to let mortgage applications. A decision in principle can typically be obtained within 24-48 hours, giving you confidence to proceed with your property search. Use our calculator to estimate your monthly mortgage costs.

Stress testing and portfolio underwriting

Stress testing is a key part of the buy-to-let mortgage assessment. Lenders apply a stress rate, typically the pay rate plus 2% subject to a minimum of around 7.0%, to ensure the rental income comfortably covers mortgage payments even if interest rates rise. For commercial buy-to-let, the stress test approach varies between lenders, and a broker who understands each lender methodology can identify which ones offer the most favourable treatment for your specific property and rental income profile. Portfolio landlords with four or more mortgaged properties face additional underwriting requirements from some lenders, including portfolio-level stress testing. Our team navigates these requirements efficiently to minimise delays.

For investors purchasing commercial buy-to-let property, the type of tenant and lease length significantly affect the lending terms available. A commercial property let to a blue-chip tenant on a 10+ year lease will attract substantially better rates than one let to a start-up on a rolling monthly contract. Lenders assess tenant covenant strength as a key risk factor, essentially measuring the likelihood that rental income will be sustained throughout the mortgage term. Our broker team presents every buy-to-let application with full tenant analysis, helping lenders understand the quality and security of the rental income stream.

ScenarioTypical rate (pa)Max LTVTerm
Commercial unit, strong long-lease tenant6.25% to 7.25%75%5 to 25 years
Shop or office, standard letting6.75% to 8.00%70%5 to 25 years
HMO or larger residential let6.50% to 8.00%75%5 to 25 years
Limited company or SPV purchase6.50% to 8.00%75%5 to 25 years
Portfolio landlord (four or more)6.25% to 8.50%75%5 to 25 years
Rental cover is the number that decides your loan. Most lenders want rent of 125% to 145% of the mortgage payment at a stressed rate, so a modest rent rise or a slightly lower loan can be the difference between decline and approval. Ask us to run the cover calculation before you offer.

Buy-to-Let Through a Limited Company or SPV

Many landlords now purchase buy-to-let property via a limited company or SPV (Special Purpose Vehicle) for tax efficiency. Company buy to let mortgages are available from specialist mortgage lenders who understand the corporate structure. Buying through limited companies can offer advantages on interest tax relief and stamp duty land tax.

The lending criteria for limited companies differs from personal buy to let applications. Lenders assess the company's financial position, the directors' personal credit, and the rental income projections. Some lenders specialise in limited company lending and offer competitive rates for portfolio landlords. A buy-to-let mortgage through a company structure requires advice from both a mortgage broker and an accountant to ensure the most tax-efficient arrangement.

Aligning the mortgage with your tax structure

Whether you are purchasing your first investment property or expanding an existing property portfolio, our team can advise on the optimal structure. Mortgages offer flexible arrangements for both personal and corporate ownership. Business owners often benefit from holding commercial property within a company structure for their business needs.

The tax advantages of limited company ownership for buy-to-let have driven a significant shift in how landlords structure their investments. Corporation tax rates, full interest deductibility within the company, and stamp duty advantages on portfolio transfers have made limited company ownership the preferred structure for many investors. However, the right structure depends on your individual tax circumstances, investment goals, and the size of your portfolio. We work alongside specialist property tax accountants to ensure your mortgage and ownership structure are fully aligned for maximum tax efficiency.

Lenders do not lend against the building, they lend against the lease. A shop let to a national chain on a fifteen-year term borrows at a materially lower rate than the identical unit on a rolling monthly licence, because tenant covenant, not floor space, sets the risk.

Buy-to-Let Mortgage Repayment Options

Repayment options for buy-to-let mortgages include capital and interest repayment (where you repay the loan over the term) and interest-only (where you pay only the interest each month and repay the capital at the end of the term). Most landlords prefer interest-only because it keeps monthly mortgage costs lower, maximising cash flow from the rental property.

With an interest-only buy to let mortgage, you will need a clear plan to repay the capital, typically through property sale or remortgaging. Lenders require evidence of your repayment strategy. Fixed interest products protect against rate rises, while variable options offer flexibility to remortgage without early repayment charges.

Interest-only versus capital repayment

Your mortgage offer will detail the repayment structure, interest rate, and any conditions. Security may be required beyond the first charge on the property, especially for higher LTV lending or portfolio arrangements. Your property may be repossessed if you do not keep up repayments on your mortgage. Remortgaging at the end of a fixed-rate period is common among buy to let investors.

The choice between interest-only and capital repayment for buy-to-let mortgages has important implications for both cash flow and long-term wealth building. Interest-only maximises your monthly cash flow from rental income, allowing you to use surplus funds for further investment or other purposes. Capital repayment costs more monthly but builds equity in the property over time, reducing your loan-to-value ratio and potentially improving your refinancing terms. Some landlords use a blended approach, interest-only on some properties and capital repayment on others, to balance cash flow with debt reduction. Our team models different repayment scenarios to help you make an informed decision aligned with your overall investment strategy and financial objectives.

Why Use a Specialist Buy-to-Let Mortgage Broker?

The buy to let market is competitive and complex. A specialist broker understands which mortgage lenders are actively lending, their specific lending criteria, and how to structure your application for the best outcome. Our team acts as your credit broker, comparing deals across 100+ lenders to find the right mortgage product for your property investment.

We provide commercial finance and real estate finance solutions for all types of buy-to-let property, from single residential property investments to large portfolios of mixed commercial and residential assets. Our expertise covers commercial buy to let mortgage products, house of multiple occupation (multiple occupation) lending, and specialist property finance for complex deals.

Matt Lenzie's background in corporate banking at Lloyds Bank and Bank of Scotland means we bring institutional-level expertise to every application. Commercial mortgages are unregulated lending and fall outside the FCA's regulated mortgage perimeter. We do not hold FCA authorisation because the products we arrange are unregulated; where a deal would require FCA authorisation, we refer it to a regulated firm. A buy-to-let mortgage can be used to purchase a property for business use or pure investment, we help you navigate the options. Whether you need a deposit calculation, a decision in principle, or full application support, contact us to discuss your requirements. A valuation of the property will be required as part of the application process.

Support across your investment journey

Building a successful buy-to-let portfolio requires access to competitive finance at every stage, from initial acquisition through to refinancing and portfolio management. Our broker team supports landlords at every point in their investment journey. For new investors purchasing their first commercial buy-to-let property, we provide guidance on property selection, lending criteria, and investment structuring. For experienced portfolio landlords, we offer portfolio review services, refinancing assessments, and access to specialist portfolio lending products that are not available through standard mortgage channels.

Our goal is to help every buy-to-let investor, whether you own one property or fifty, access the most competitive mortgage terms available. Contact us to discuss your commercial buy-to-let requirements.

  • Deposit of 25% or more: the minimum equity most lenders expect on a commercial buy-to-let.
  • Rental income evidence: tenancy agreements or a valuer market rent, sufficient to meet the cover ratio.
  • Tenant and lease details: covenant strength and unexpired lease term, which drive the rate offered.
  • Credit and portfolio schedule: your credit history and a full list of existing mortgaged properties.
  • Investment case: the business rationale for the purchase and your experience as a landlord.
  • Repayment strategy: for interest-only, a clear plan to repay capital through sale or remortgage.
  • Property valuation: a lender-instructed valuation confirming value and rental potential.
“The single lever most buy-to-let investors underuse is tenant quality. I have placed the same office with two lenders where the rate differed by nearly a point, purely because one recognised the strength of a ten-year lease to an established tenant. Rental cover of 125% to 145% gets you through the door, but a strong covenant is what earns the sharpest rate, so I always lead a case with the lease, not the postcode.”
ML

Matt Lenzie

Founder & Principal Broker, Commercial Mortgages Broker

Frequently Asked Questions

How much deposit for a commercial buy-to-let?

Most lenders require a minimum deposit of 25% for commercial buy-to-let mortgages. Lower deposits (20%) may be available for strong applications with excellent rental income coverage. Higher LTV lending (up to 80%) is available from specialist lenders for experienced landlords.

What is the difference between a residential and commercial buy-to-let mortgage?

A residential buy-to-let mortgage is for standard houses and flats let to tenants. A commercial buy-to-let covers commercial properties (offices, shops, industrial units) and larger residential properties like HMOs with 7+ bedrooms. Commercial products typically have higher rates but offer access to higher-yielding property types.

Can I get a buy-to-let mortgage through a limited company?

Yes. Many landlords now purchase buy-to-let property through limited companies or SPVs for tax advantages. Specialist lenders offer company buy-to-let mortgage products with competitive terms for portfolio landlords.

What are typical commercial buy-to-let mortgage rates?

Rates range from 6.25% to 8.50% depending on LTV, property type, and landlord experience. Fixed and variable rate options are available with terms from 2 to 5 years.

Can I get an interest-only buy-to-let mortgage?

Yes. Interest-only is the most common repayment structure for buy-to-let mortgages. You pay only the interest each month and repay the capital at the end of the term, typically through property sale or remortgaging.

What rental income do I need for a buy-to-let mortgage?

Most lenders require the rental income to cover 125-145% of your monthly mortgage payments. This ensures there is sufficient margin to cover void periods and maintenance costs.

Related Pages

Commercial Mortgage RatesHoliday Let MortgageHMO Commercial MortgageInterest-Only Commercial MortgageCommercial Mortgage CalculatorSemi-Commercial Mortgage

Key Concepts

MortgageLoanBuy to letInterestInterest rateFinance

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