Whether you are a business owner purchasing office premises for your own use or a property investor buying office space to let, securing the right commercial mortgage is essential. Our specialist brokers access the whole UK lender market to find competitive office mortgage rates tailored to your needs.
From 5.25%
Interest rate
Up to 75%
Loan-to-value
1-25 years
Mortgage term
£50,000
Minimum loan
A commercial mortgage is a type of loan used to purchase or refinance office buildings, serviced offices, co-working spaces, and business parks across the UK. Unlike a residential mortgage, a commercial mortgage is secured against the commercial property itself and is available to limited companies, partnerships, SPVs, and individual business owners.
A commercial mortgage could be used to buy a new or existing office for your own business use, refinance an existing office mortgage to release equity or secure a better rate, or convert other commercial property into office premises. Whether you are looking at a single-floor suite, a multi-storey headquarters, or serviced office units, the same core lending principles apply. Larger or more complex deals may require specialist lenders rather than high-street banks. Our broker team accesses the whole UK lender market to find the right type of loan for your situation.
Office mortgages are one of the most established areas of commercial lending. The UK office market remains resilient, with strong demand for quality workspace across major cities and regional centres. Our specialist brokers can help you navigate the different types of office property — from converted period buildings to modern purpose-built blocks — and find a commercial mortgage that matches the specifics of your deal. Whether you are borrowing for owner-occupation or as a property investor, the lending approach differs and we ensure your application is structured correctly for the best terms.
Current interest rates for office commercial mortgages range from 5.25% to 8.50%, depending on the lender, loan-to-value ratio, and borrower profile. Most lenders offer both fixed rate and variable rate options for borrowing against office premises.
A fixed interest rate gives you certainty on repayments on your mortgage for 2 to 5 years, protecting against base rate rises. A variable rate typically tracks the Bank of England base rate, offering flexibility with no early repayment charges. Your mortgage offer will depend on the property's rental income (for buy-to-let investments) or business revenue (for owner-occupied offices), your credit history, and the property's condition and location.
Lenders will typically lend up to 75% LTV on standard office buildings. For properties in prime city-centre locations with strong tenant covenants, some lenders may stretch to 80%. An arrangement fee of 1% to 2% of the loan amount is standard, plus legal fees and valuation costs. Working with a specialist broker ensures you compare the best deals across our panel of 100+ lenders. Use our commercial mortgage calculator to estimate your monthly repayment before you apply.
When comparing office mortgages across lenders, look beyond the headline interest rate. The total cost of borrowing includes the arrangement fee, valuation costs, legal fees, and any ongoing management charges. Some lenders offer fee-free products at slightly higher rates, which can work out cheaper overall depending on the loan amount and term. At CMB, we model the total cost across different lender options to identify the genuinely cheapest deal for your circumstances. Rates from 5.25% are available for the strongest applications with lower LTV ratios and established business track records.
Eligibility for an office mortgage is assessed by the lender on several key criteria. You will generally need a deposit of at least 25% of the property value, though some lenders accept 20% for strong applications. The office premise must be suitable for commercial use — either owner-occupied as your own business premises, or let to tenants generating rental income.
Business owners typically need at least two years of trading history, healthy business credit, and a viable business plan. Limited companies and SPVs are accepted by most lenders. If you have adverse credit, specialist lenders can still consider your application, though interest rates may be higher. First-time buyers and new or existing businesses may need to provide personal guarantees or additional security. Your property may be used as security for the loan, and may be repossessed if you do not keep up repayments on your mortgage.
There are two main types of office finance: buy-to-let mortgage products for property investors, and owner-occupied mortgages for businesses purchasing their own premise. Each has different lending criteria and finance structures.
A buy-to-let office mortgage is assessed primarily on the rental income the property will generate. Lenders usually require rental income to cover at least 125% of annual mortgage repayments. For owner-occupied offices, lenders focus on business revenue, profitability, and cash flow to ensure you can repay the loan. Both types can use capital repayment or interest-only structures, and a capital repayment holiday may be available in the first year.
If you own mixed-use property — for example, offices with a ground-floor retail unit — you may need a semi-commercial mortgage instead. Where premises include both commercial and residential elements, our commercial mortgages team can advise on the best route for your business mortgage needs.
Our specialist team handles both buy-to-let and owner-occupied office mortgages daily. Matt Lenzie brings decades of corporate banking experience from Lloyds Bank and Bank of Scotland, giving us deep insight into how banks and specialist lenders make their decisions. This expertise helps us present your application in the way that each lender finds most compelling, whether you are a first-time commercial buyer or an experienced portfolio landlord looking to add another office to your investments.
The application process for an office commercial mortgage typically takes 4 to 12 weeks from initial enquiry to completion. Working with a specialist commercial mortgage broker can significantly speed this up and improve your chances of approval.
To apply, you will need: company accounts for the last 2-3 years, a business plan, details of the property including any existing tenancies, bank statements, and identification. The lender will commission an independent valuation of the office property, which typically costs between £1,500 and £5,000 depending on the property's value. A fee for the lender's solicitor and your own solicitor will also apply.
Our brokers manage the entire process — from initial enquiry and lender selection to valuation, legal work, and drawdown. We present your application in the best light across multiple lenders to ensure you receive the most competitive mortgage offer. A commercial mortgage could help you acquire property for business use or expand your portfolio. Use our calculator to estimate monthly repayments, or get in touch for a personalised quote.
When borrowing to buy office property, it is important to budget for all costs — not just the monthly repayments on your mortgage. Typical costs include:
Arrangement fee: 1% to 2% of the loan amount, charged by the lender (sometimes added to the loan). Valuation fee: £1,500 to £5,000 depending on property size and value. Legal fees: £2,000 to £5,000 for the lender's solicitor, plus your own solicitor costs. Broker fee: Typically 0.5% to 1% of the loan amount. Stamp Duty Land Tax: Based on the purchase price (commercial rates apply). Survey costs: A building survey is advisable for older office buildings.
Early repayment charges may apply if you repay the loan early — particularly on fixed rate products. Some variable rate mortgages have no early repayment charges, giving you more flexibility. Fees may apply for variations to the loan terms. The first legal charge over the property will be held by the lender. Always check the terms before committing. Your property may be repossessed if you do not keep up repayments on your mortgage.
For larger office acquisitions (£1m+), lenders may offer bespoke pricing and reduced arrangement fees. The economies of scale on larger transactions can make commercial borrowing very cost-effective. It is worth exploring whether a business loan alongside the main mortgage might fund fit-out or refurbishment costs. Our brokers model the full funding picture to ensure you budget accurately for all costs associated with acquiring an office property.
If you need to move quickly — for example, buying an office at auction or securing a property before your existing mortgage completes — a bridging loan can provide short-term interest-bearing finance in as little as 7-14 days. You can then refinance onto a longer-term commercial mortgage once the purchase is complete.
Business loans and other funding options may also be available alongside or instead of a traditional commercial mortgage. A range of business finance products exist, including development finance for office conversion projects. Property for business use — whether new or existing — can be financed through multiple routes. Business banking relationships can also support your application. Our broker team can help you navigate the options to find the right solution for your circumstances, drawing on Matt Lenzie's experience in corporate finance at Lloyds Bank and Bank of Scotland.
“Every offices application is different. I work directly with borrowers to understand their objectives, structure the deal correctly, and present it to the right lenders. That hands-on approach consistently delivers better outcomes than going direct to a single bank.”
Matt Lenzie
Founder & Principal Broker, Commercial Mortgages Broker
Most lenders require a deposit of 25% to 30% of the office property's value. Some specialist lenders may accept as little as 20% for strong applications with excellent trading history and credit profile.
Yes, though options may be more limited. Some lenders will consider new businesses with a strong business plan and personal guarantees. First-time property investors may need a larger deposit (30%+) and may face higher interest rates.
Absolutely. Bridging loans are commonly used to complete office purchases quickly, then refinanced onto a standard commercial mortgage within 6-12 months.
Office mortgage rates currently range from 5.25% to 8.50% depending on LTV, property type, and borrower profile. Fixed rates typically start from 5.50% for 2-year terms.
Interest on a commercial mortgage is generally an allowable business expense for corporation tax or income tax purposes. Capital repayments are not tax-deductible. Speak to your accountant for advice specific to your situation.
Commercial mortgages are not assessed on salary multiples like residential mortgages. Instead, lenders look at the property's rental income or your business revenue. For a £250,000 commercial mortgage, the property's rental income or your business cash flow must comfortably cover repayments at typically 125% or more.
Typically 4-12 weeks from application to completion. Working with a specialist broker can help speed up the process by ensuring your application is complete and presented to the right lenders.