Commercial Mortgages
Commercial mortgages can provide a practical way to purchase, refinance, or release capital from business and investment property. Whether you’re buying premises for your own business or expanding a commercial property portfolio, the right funding structure can support long-term plans while protecting cash flow.
At Flagstone, we offer independent, whole-of-market commercial mortgage advice, helping business owners and investors find solutions tailored to their circumstances. From the initial conversation through to completion, you’ll receive clear guidance and hands-on support at every stage.
What is a commercial mortgage?
A commercial mortgage is a loan secured against commercial or mixed-use property. It can be used to purchase new premises, refinance existing borrowing, or raise capital against property already owned.
Commercial mortgages are available for owner-occupied properties, where a business trades from the premises, as well as commercial investment properties that generate rental income. Applications are typically assessed based on both the property itself and the borrower’s financial position.
Is a commercial mortgage right for me?
A commercial mortgage may be suitable if you’re purchasing or refinancing business premises, investing in commercial property, or looking for a longer-term finance solution backed by property.
It’s often appropriate where borrowing needs are more complex than standard residential lending and where access to multiple lenders can make a meaningful difference to rates, terms, and flexibility.
Who should consider a commercial mortgage?
Commercial mortgages are commonly used by business owners purchasing premises they trade from, as well as by commercial property investors looking to expand or refinance their portfolios. They can also be suitable for limited companies, LLPs, and sole traders, including portfolio landlords moving into or growing within the commercial property market.
Commercial property values can fall as well as rise. Economic downturns, changing demand, or sector-specific challenges can reduce property value. If values fall below the outstanding mortgage balance, refinancing or selling can become more difficult.
Understanding commercial mortgages
Commercial mortgage arrangements vary widely, shaped by factors such as property use, income, and risk. Taking the time to understand the fundamentals helps ensure the right decisions are made early on.
How commercial mortgages work
Commercial mortgages are secured loans against commercial or mixed-use property. Loan terms can vary from shorter arrangements through to long-term funding, depending on the lender and property type.
Deposits are usually higher than for residential mortgages, and interest rates are set on a case-by-case basis. Affordability is assessed using factors such as rental income, business accounts, projected income, and overall financial strength. Loan-to-value limits and approval criteria vary between lenders.
Types of commercial mortgages
Commercial mortgages can be structured in different ways depending on how the property is used.
Owner-occupied commercial mortgages are designed for businesses purchasing premises they trade from.
Commercial investment mortgages are used to buy business properties let to tenants to generate rental income.
Interest-only commercial mortgages allow monthly payments to cover interest, with the capital repaid at the end of the term.
When a commercial mortgage may be suitable
A commercial mortgage may be appropriate when buying premises for your business, investing in commercial or mixed-use property, refinancing existing borrowing, releasing capital tied up in property, or restructuring finance to improve cash flow.
How Flagstone supports you through the process
As an independent, whole-of-market advisor, Flagstone compares suitable commercial mortgage providers on your behalf. We explain rates, terms, and costs clearly, help prepare documentation, and guide you through valuation and lender requirements.
Our dedicated admin team supports your application through to completion, providing a personal, relationship-led service throughout.
Next steps
Getting started is simple. You can complete our contact form, or speak to us directly. An initial conversation allows us to understand your property, borrowing needs, deposit position, and timescales so advice can be fully tailored from the outset.
Residential mortgages are generally not suitable for commercial properties. Flagstone can help assess whether a commercial mortgage or mixed-use solution is more appropriate for your situation.
Deposits are typically higher than residential mortgages and vary by lender and property type. Flagstone compares whole-of-market options to help you understand realistic deposit requirements early on.
Borrowing amounts depend on property value, income, and affordability assessments. Flagstone reviews your circumstances and lender criteria to identify suitable borrowing ranges.
Most commercial mortgages are unregulated, though some mixed-use or owner-occupied arrangements may fall under regulation. Flagstone will explain how regulation applies to your specific case.
Commercial mortgage rates are often higher, reflecting increased lender risk and bespoke underwriting. Flagstone helps compare rates across multiple lenders rather than relying on a single provider.
A broker provides access to a wider range of lenders and structures than going direct. As an independent, whole-of-market advisor, Flagstone helps secure terms aligned with your business goals.
Lenders include high-street banks, challenger banks, and specialist commercial providers. Flagstone works across this spectrum to find suitable options based on property type and risk profile.
Commercial mortgages can be used for offices, retail units, industrial properties, and mixed-use buildings. Flagstone can advise on lender appetite for specific property types.
Lenders typically review property details, income, business accounts, and overall financial strength. Flagstone helps prepare and present this information clearly to support the application.
Yes, commercial mortgages are available to limited companies, LLPs, and sole traders. Flagstone regularly advises across different business structures and lender requirements.
