Compare current commercial mortgage rates from UK lenders. Fixed and variable interest rates from 5.25% for the strongest applications. Use our commercial mortgage calculator to estimate your commercial mortgage repayments, or speak to our team for a personalised quote on your commercial property purchase. Rates are usually higher than residential — but commercial and residential lending work differently, and the yields often more than compensate.
From 5.25%
Best available rate
100+
Lender panel
Up to 75%
Maximum LTV
48hrs
Decision in Principle
Commercial mortgage rates in the UK currently range from 5.25% to 9.49%, depending on the loan-to-value ratio, type of property, and borrower profile. Whether you are a business owner funding a commercial property purchase or an investor building a portfolio of commercial investment properties, understanding how commercial mortgage rates work is essential to securing the best deal in today's mortgage market.
This guide compares current commercial mortgage rates and fees by product type, property type, and LTV band. We explain how rates are set, what each lender offers for commercial investment mortgages, and how commercial mortgage brokers can help you access lower rates across the whole market. All rates shown are subject to status and individually assessed — the rate you are offered will depend on your personal and business circumstances. Use our commercial mortgage calculator to model scenarios before you apply.
Lenders offer different rates depending on whether you choose a fixed rate, variable rate, or tracker product. Each structure has distinct advantages for business owners and property investors.
Most popular choice. Rate locked for 2 years, typically with early repayment charges.
Long-term certainty. Higher than 2-year fixes but protects against rate rises.
Moves with Bank of England Base Rate. Often no early repayment charges.
Benchmark replacement for LIBOR. Common on larger commercial facilities.
A fixed interest rate locks your monthly repayments for 2-5 years, giving you certainty — ideal if you want to manage cash flow. A variable interest rate (also known as a floating interest rate) moves with the Bank of England base rate, often with no early repayment charges — better if you plan to repay or refinance early. Read our fixed vs variable comparison guide for a detailed breakdown.
Fixed rate commercial mortgages are the most popular choice among borrowers seeking predictable monthly repayments. The lender will lend at a locked rate for the agreed term — if you repay the mortgage early, early repayment charges typically apply. After the fixed period, your mortgage typically reverts to a variable rate. Variable and tracker rates move with the Bank of England base rate, meaning your mortgage payments change when the base rate changes. For larger commercial facilities, SONIA-linked rates are increasingly common, particularly on loan amounts above £1 million.
Use our commercial mortgage calculator to model how fixed and variable rates affect your monthly repayments at different loan amounts and terms.
Rates differ depending on the type of property being used as security. Standard commercial properties attract lower rates than specialist assets where lenders apply strict lending criteria.
| Property Type | Owner-Occupied | Investment | Max LTV |
|---|---|---|---|
| 5.49% - 6.99% | 5.75% - 7.49% | 75% | |
| 5.75% - 7.49% | 6.25% - 8.49% | 70% | |
| 5.49% - 6.99% | 5.75% - 7.49% | 75% | |
| 5.75% - 7.49% | 6.25% - 8.49% | 70% | |
| 6.25% - 8.49% | 6.75% - 9.49% | 65% | |
| 6.50% - 8.99% | 7.00% - 9.99% | 65% | |
| 6.50% - 8.99% | 7.00% - 9.99% | 65% | |
| 5.25% - 6.49% | 5.75% - 7.49% | 75% | |
| N/A | 5.99% - 8.49% | 75% |
Owner-occupied commercial mortgage rates tend to be lower because the borrower's business occupies the property, giving the lender additional comfort. Investment mortgages on commercial properties carry slightly higher rates reflecting tenant vacancy risk. Semi-commercial properties (mixed-use with both residential and commercial elements) can sometimes achieve better rates than pure commercial, depending on the value of the property and the split between uses.
The loan-to-value ratio is one of the single biggest factors affecting your commercial mortgage rate. A lower LTV means less risk for the lender and a lower amount of interest for the borrower.
5.25% - 6.25%
Widely available
5.49% - 6.75%
Widely available
5.75% - 7.49%
Most lenders
6.25% - 8.49%
Selected lenders
6.75% - 9.49%
Specialist lenders
Commercial mortgage rates vary significantly across the mortgage market. High street banks offer lower rates with strict lending criteria, while specialist lenders offer higher LTV and flexibility at a premium.
Competitive for strong borrowers with existing banking relationship. Longer processing times.
Good portfolio lending appetite. Require full banking relationship for best rates.
Strong appetite for owner-occupied businesses. Regional relationship manager model.
Large commercial property book. Competitive on multi-property portfolios.
Higher LTV than high street banks. Flexible on trading history and property type.
Specialist lender comfortable with complex cases, HMOs, and mixed-use properties.
Unlike residential mortgages where rates are standardised products, commercial mortgage rates are individually negotiated. The rate you are offered depends on your business and personal circumstances, the property or asset used as security, and the lender's own appetite at the time of application.
Bank of England base rate: The base rate sets the floor for all UK lending. Variable rate commercial mortgages track the base rate directly. Fixed rates are priced against swap rates, which reflect the market's expectations of future interest rate movements. The current Bank of England base rate is 4.50%.
Loan to value: Lower LTV means lower interest. Moving from 75% to 60% LTV can save 1.5% to 3.0% on your rate — on a £1 million loan amount, that equates to £15,000 to £30,000 per year in reduced interest paid.
Borrower strength: The rate you receive will depend on your business — lenders assess your credit history, business accounts, trading history, and net worth. Stronger borrowers with clean business credit and proven income negotiate lower interest rates. Owners or directors with personal guarantees may also access better terms.
Property type and location: Prime commercial real estate in strong locations commands better rates. The value of the property and its rental yield affect how much a lender is willing to lend. Specialist assets like hotels and pubs attract premium rates due to strict lending criteria and debt service complexity.
“The difference between approaching a lender directly and using a whole-of-market broker can be 0.5% to 1.5% on the rate. We understand how each lender prices commercial finance, what their credit appetite is this quarter, and where we can negotiate better rates or reduced arrangement fees. That insight comes from years inside the banking system.”
The interest rate is only part of the total cost. When comparing commercial mortgage rates, business owners should consider all mortgage charges and fees.
| Cost Type | Typical Range | Notes |
|---|---|---|
| Arrangement Fee | 1% - 2% | Of loan amount. Charged by the lender to set up the facility. |
| Valuation Fee | £1,500 - £5,000+ | Depends on the value of the property and complexity. |
| Legal Costs (Lender) | £2,000 - £5,000+ | Lender's solicitor costs, paid by the borrower. |
| Legal Costs (Your Solicitor) | £2,000 - £5,000+ | Your own solicitor for the property purchase and mortgage. |
| Broker Fee | 0.5% - 1% | Disclosed upfront. Often offset by the lower rates achieved. |
A shorter mortgage term of 10 to 15 years means higher monthly repayments but less total interest paid. Most simple commercial mortgages run for 15 to 25 years. For a £500,000 commercial mortgage used for commercial purposes, expect upfront costs of approximately £10,000 to £20,000 in addition to your deposit. Lenders will need to approve the loan and confirm you can fully repay your loan within the agreed term. Mortgage rates could change between your initial enquiry and completion, so consider locking in a rate early.
A commercial mortgage is not the only form of business finance for property investment. Depending on your timeline, you may want to use a bridging loan to secure a property quickly and then refinance, or explore development finance for construction projects.
The single most effective way to get a lower rate. Moving from 75% to 60% LTV can save 1% to 2% on your interest rate and open access to more lenders willing to lend at better terms.
Have 2-3 years of business accounts ready, along with tax returns and a clear picture of your assets. Strong financials help lenders approve the loan quickly and at better rates.
Commercial mortgage brokers compare rates across 100+ lenders. Many offer different rates through intermediary channels that are not available directly — often the best commercial mortgage deals.
If mortgage rates could fall, a variable rate offers lower costs with no early repayment charges. For certainty on your repayment mortgage, a fixed rate locks in your costs.
For investment properties, a strong tenant on a long lease (5+ years, FRI terms) with a national covenant dramatically improves your commercial investment mortgage rate.
Address any adverse credit issues before applying. Even minor defaults can push you from high street bank rates to specialist lender business credit pricing.
As of Q2 2026, commercial mortgage rates in the UK typically range from 5.25% to 9.49%, depending on the property type, loan-to-value ratio, borrower strength, and whether the property is owner-occupied or investment. The strongest applications with low LTV on prime commercial property can achieve rates from 5.25%, while specialist assets like hotels and pubs may attract rates at the higher end. Fixed rates for 2-year terms start from around 5.49%, while variable rates are commonly quoted as Bank of England Base Rate plus 1.75% to 4.50%.
The best commercial mortgage rates are achieved by combining several factors: a lower loan-to-value ratio (under 60% LTV attracts the most competitive pricing), strong borrower financials (2-3 years profitable accounts, clean credit history), prime property in a good location, and strong tenant covenants for investment properties. Using an experienced commercial mortgage broker gives you access to the full market rather than a single lender's products, allowing us to negotiate the best terms across high street banks, challenger banks, and specialist lenders.
Yes, commercial mortgage rates are typically 1% to 4% higher than equivalent residential mortgage rates. This reflects the additional risk and complexity involved in commercial property lending. Commercial properties have more variable income streams, are harder to value, take longer to sell, and involve more complex legal structures. However, commercial property can generate significantly higher yields than residential, so the net return to the investor often remains attractive despite the higher financing costs.
Fixed commercial mortgage rates lock your interest rate for a set period, typically 2 to 5 years, giving you certainty over your monthly payments. Variable rates move with the Bank of England Base Rate or SONIA, meaning your payments change when the benchmark rate changes. Fixed rates provide budget certainty but usually carry early repayment charges. Variable rates offer flexibility to exit without penalty but expose you to rate increases. The best choice depends on your risk tolerance, how long you plan to hold the property, and your view on the interest rate outlook.
Commercial mortgage rates are influenced by several factors: the Bank of England Base Rate (which sets the floor for borrowing costs), the loan-to-value ratio (lower LTV means lower risk and better rates), the property type (standard offices and industrial units attract better rates than specialist assets like hotels), the tenant quality and lease length for investment properties, the borrower's financial strength and trading history, the loan size (larger loans may attract marginal rate discounts), and the lender's own appetite and funding costs at the time of application.
The total cost of a commercial mortgage includes: the interest rate (your ongoing monthly cost), an arrangement fee of 1% to 2% of the loan amount, a valuation fee of £1,500 to £5,000+ depending on property size, lender legal costs of £2,000 to £5,000+, your own solicitor's costs of £2,000 to £5,000+, and potentially broker fees (disclosed upfront, typically 0.5% to 1%). For a £500,000 commercial mortgage, expect upfront costs of approximately £10,000 to £20,000 in addition to your deposit.
High street bank commercial mortgage rates vary based on borrower profile and property type. As of Q2 2026, HSBC typically offers commercial mortgage rates from 5.25% for strong borrowers with existing banking relationships. Barclays and NatWest commercial mortgage rates typically start from 5.49%. These rates are indicative and subject to individual assessment — actual rates depend on LTV, property type, borrower financials, and the specific deal structure. High street banks generally require existing or new full banking relationships and may have longer processing times than specialist lenders.
Unlike residential mortgages, commercial mortgage rates are not standardised products that can be directly compared on comparison websites. Each commercial mortgage is individually underwritten based on the specific property, borrower, and deal structure. The advertised 'from' rates are only available to the strongest applications. A commercial mortgage broker like CMB compares rates across the whole market on your behalf, accessing terms from high street banks, challenger banks, building societies, and specialist lenders — many of which do not advertise rates publicly.
Deepen your understanding of commercial property finance with these specialist guides.
Lower monthly costs with interest-only repayment structures for commercial properties.
Rates and criteria for purchasing commercial investment properties to let.
Finance for mixed-use properties with residential and commercial elements.
How to secure commercial finance through your limited company or SPV.
Our founder Matt Lenzie spent years at Lloyds Bank and Bank of Scotland underwriting commercial property deals. We know how lenders assess risk and price applications.
We compare commercial mortgage rates across 100+ lenders — high street banks, challenger banks, building societies, and specialist lenders — to find you the best deal.
Our track record of arranging over £300 million in commercial property finance gives us negotiating leverage to secure lower rates and better terms.