Owner-Occupied Commercial Mortgages for UK Businesses

An owner-occupied commercial mortgage allows your business to buy the property it trades from, rather than continuing to rent.

If you are a UK business looking to purchase commercial real estate property for your own use, we help you understand your options and secure the right funding.

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Who is this for?

Is an Owner-Occupied Commercial Mortgage Right for You?

This type of mortgage is suitable if:

  • Your business will trade from the property
  • The majority of the property is used by your business
  • You are buying offices, retail units, warehouses, or industrial premises
  • You operate a UK-registered business

✔ Limited companies
✔ Partnerships
✔ Sole traders

(Property investment cases are handled separately)

Why UK Businesses Choose Owner-Occupied Premises?

Many businesses reach a point where renting no longer makes sense.

Common reasons include:

  • Rising commercial rent
  • Lack of long-term security
  • Restrictions from landlords
  • Desire to build a long-term asset

At the same time, business owners often feel uncertain about:

  • Deposit requirements
  • Affordability assessments
  • Bank criteria and processes

Common Business Challenges

An owner-occupied commercial mortgage provides a structured way to move from renting to ownership.

Eligibility Criteria

While criteria varies, lenders usually assess:

  • Business trading history
  • Profitability and affordability
  • Deposit availability
  • Property type and location
  • Credit profile of directors

Affordability is generally assessed against:

  • Business accounts
  • Forecasts (where applicable)
  • Rental stress tests or debt-service coverage

An eligibility review helps clarify whether your case fits lender requirements.

Check Your Eligibility Before Applying

Typical Commercial Mortgage Parameters for Owner-Occupied Premises

An owner-occupied commercial mortgage is a loan secured against a commercial property that is primarily used by your own business, not let to third parties.

Key characteristics:

  • The business operates from the property
  • The mortgage is assessed based on business affordability
  • Longer terms compared to short-term funding

This is distinct from commercial investment or buy-to-let mortgages.

Loan Amounts

£50,000 to 25M+

Subject to Lender and Property Type

Loan-to-Value (LTV)

60%–75%

Typically for Owner-Occupied Properties

Loan Terms

10 – 25 Years

Repayment options may include capital & interest or interest-only (subject to lender criteria)

Interest Rates

Fixed / Variable

Rates depend on business strength, property type, and loan structure

We explain these clearly before any application is progressed.

The Problem

Why the Right Lender Matters

Owner-occupied commercial mortgages in the UK are offered by:

  • High-street banks
  • Challenger banks
  • Specialist commercial lenders

Each lender has different:

  • Sector preferences

  • Risk appetite

  • Assessment models

Approaching the wrong lender can result in unnecessary delays or declines.
Matching your case correctly from the start is critical.

The Solution

How We Help UK Businesses

We assist by:

  • Reviewing your business and property details
  • Explaining realistic funding options
  • Matching you with suitable UK commercial mortgage lenders
  • Supporting you through the mortgage process

Our approach is transparent and focused on suitability, not volume.

Thinking of Buying Premises for Your Business?

Speak to a Commercial Mortgage Broker Today