What is a good commercial mortgage rate?

In 2026, competitive commercial rates start from around 5-6% for low-LTV, low-risk properties. Higher-risk or higher-LTV deals may be 7-9%. We find the best available rate for your specific property.

Are commercial rates negotiable?

Through a broker, yes — we have access to exclusive rates and can negotiate on your behalf. Direct applications to lenders typically get standard pricing.

Can I get a fixed-rate commercial mortgage?

Yes, fixed rates are available for 2-10 year periods. They're popular for budgeting certainty, particularly with longer commercial leases.

Why are commercial rates higher than residential?

Commercial properties carry more risk — business tenants can fail, commercial values are more volatile, and void periods can be longer. The higher rates reflect this increased risk.

Commercial Mortgage Rates

Commercial mortgage rates vary by property type, LTV, and business profile. We compare specialist lenders to find you the most competitive rate.

Understanding Commercial Mortgage Rates

Commercial mortgage rates are typically higher than residential rates, reflecting the additional risk lenders take on business properties. Rates depend on the property type (office, retail, industrial), the loan-to-value ratio, the strength of the tenant or business, and whether it's owner-occupied or an investment. We compare rates from specialist commercial lenders to find the best deal for your specific property.

Access to competitive commercial mortgage rates
Rate comparison across multiple specialist lenders
Fixed and variable rate options available
Understanding of rate factors and how to improve yours
100% fee-free commercial mortgage advice

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Tell us about the property

Estimates are fine — we'll refine the numbers together.

Property Value (£) *

Deposit Amount (£)

Your home may be repossessed if you do not keep up repayments on your mortgage.

Current Rate Ranges

Commercial mortgage rates in 2026 typically range from 5-9% depending on the property type and risk profile. Owner-occupied properties often attract rates 0.5-1% lower than investment properties. Lower LTVs (50-60%) unlock the best rates, while higher LTVs (70-75%) carry a premium.

Factors Affecting Your Rate

Key rate determinants include LTV (lower = better rate), property type (offices and industrial often cheaper than retail), tenant quality (blue-chip tenants reduce risk), lease length (longer = more secure = better rate), your business track record, and whether the property is in a strong commercial location.

Fixed vs Variable Rates

Commercial mortgages offer both fixed and variable rates. Fixed rates provide payment certainty for 2-5 years. Variable rates track the Bank of England base rate or SONIA, offering flexibility but interest rate risk. Some lenders offer capped variable rates — a middle ground.

Additional Costs

Beyond the interest rate, commercial mortgages may include arrangement fees (1-2% of the loan), valuation fees (£1,000-£5,000+ depending on property complexity), legal fees, and survey costs. We factor all costs into our rate comparison.