Commercial mortgage rates are not a single market price. A lender will usually price the case around the property, borrower, loan-to-value, trading evidence, repayment route and the wider interest-rate environment. This guide explains what affects pricing and what to prepare before asking for terms.
What rate can you get on a commercial mortgage?
The honest answer is: it depends on the case. Lenders usually assess commercial mortgage pricing individually because they look at both the property and the borrower. A strong trading business buying its own premises may be viewed differently from an investor buying a specialist property, a pub, a hotel, a semi-commercial building or a case with limited accounts.
Rather than starting with a generic headline rate, it is more useful to ask: what would make this case lower risk, what evidence would lenders want, and which lender type is most likely to understand the property?
Depending on the lender and product, commercial mortgage rates can be fixed, variable or linked to a reference rate. The right route depends on whether you want payment certainty, flexibility, the option to overpay or a structure that works for a future refinance or sale.
What affects commercial mortgage rates?
Loan-to-value
Lower borrowing against the property value can help. Higher loan-to-value usually gives the lender less protection if the property needs to be sold.
Trading evidence
Accounts and bank conduct matter. Clear profitability, stable income and explainable figures can improve lender confidence.
Property type
Some properties are more specialist. Standard business premises may be assessed differently from pubs, hotels, care-related property or mixed-use buildings.
Owner-occupied or investment
The income source changes the risk. Owner-occupied cases rely on business affordability; investment cases often depend on lease and tenant strength.
Credit profile
Credit history affects lender choice. Missed payments, defaults or previous declines do not always stop a case, but they can change the lender route and price.
Term and repayment type
Interest-only and repayment structures are assessed differently. A clear repayment or exit plan can be important, especially where borrowing is larger or more specialist.
Does Bank Rate decide your commercial mortgage rate?
Bank Rate is important because it influences the wider interest-rate environment and can affect variable borrowing costs. However, it is not the only factor. Lenders also price around their own funding, risk appetite, property security, sector exposure and how strong the application looks.
That is why two commercial mortgage cases submitted in the same week can receive different pricing. A lender may like the borrower but not the property type, or like the property but need stronger accounts, lease evidence or deposit source information.
For this reason, Count Ready treats Bank Rate as context rather than a promise. The useful question is not only “what is the rate today?” but “which lenders are likely to price this case sensibly once they see the evidence?”
How to think about fixed, variable and tracker-style pricing
The rate is only one part of the commercial mortgage cost
A lower interest rate is not always the cheapest or most suitable route once fees, flexibility and lender criteria are considered. Before choosing a lender, compare the total cost and the practical conditions attached to the offer.
Arrangement fees
Some lenders charge an arrangement or completion fee. Check whether it is paid upfront, added to the loan or due only if the mortgage completes.
Valuation and legal costs
Commercial mortgage valuations and the legal process can be more expensive than residential cases, especially for specialist property or complex leases.
Broker fees
Where a broker fee applies, it should be explained clearly before chargeable work starts. Also check whether the broker may receive lender commission.
Early repayment charges
If you might sell, refinance or repay early, review the lender’s commercial mortgage overpayment and early repayment terms, including any exit costs.
Insurance and protection
Buildings insurance is usually expected. Some borrowers also review business loan protection, key person cover or other cover linked to the borrowing.
Cash flow after completion
Do not use every available pound as deposit. Lenders may want the business to retain working capital for repairs, stock, VAT, rates or professional costs.
How to compare commercial mortgage rate illustrations
Put each illustration on the same loan amount, term, repayment basis and expected holding period. An interest-only monthly payment should not be compared directly with a capital-repayment payment without also considering the balance left at the end.
- Check the starting rate and whether it is fixed or linked to a named reference rate plus a margin.
- Confirm any floor, cap or minimum rate and how often a variable rate can reset.
- Check what rate or pricing method applies after a fixed or introductory period.
- Compare arrangement fees and whether they are paid upfront or added to the loan.
- Add valuation, legal and broker costs, plus early repayment or exit charges that may affect your plans.
- Note the cash required, conditions, expiry date and whether the figures are only indicative.
Important: an indication or illustration is not a mortgage offer. Pricing can change until the lender has assessed the borrower, property, security and supporting evidence and issues formal terms.
How to improve the lender conversation before asking for rates
A lender can only price the risk they understand. If the enquiry is vague, lenders may respond cautiously, slowly or with little practical detail. If the evidence is clear, the adviser can usually narrow the lender route more quickly.
Evidence that makes pricing easier to assess
- Prepare recent accounts, management figures or rental evidence.
- Explain the property type, use, value, tenure and condition.
- Show the deposit or equity available and where it is coming from.
- List existing borrowing, repayment history and any credit issues.
- Clarify whether the property is owner-occupied, investment or mixed-use.
- Use a calculator to test repayments, but ask an adviser to sense-check lender appetite.
Why Count Ready does not publish a single “best commercial mortgage rate”
A single advertised rate can mislead commercial borrowers. A case may need a different lender because of property type, sector, lease terms, accounts, deposit, credit profile, loan size or timescale. The useful output is not a generic number; it is a realistic route and a clear list of what lenders will need.
Send your figures for a commercial mortgage rate sense-check
Tell us the property type, loan amount, deposit or equity, income evidence and timescale. We will sense-check the figures, explain what may influence pricing and identify what lenders are likely to need before you ask for terms.
Commercial mortgage rates questions
What are commercial mortgage rates in the UK?
Commercial mortgage rates are the interest rates lenders charge on borrowing secured against commercial property. The exact rate is case-specific and depends on the borrower, property, loan-to-value, trading evidence, repayment route, term, credit profile and lender appetite.
Why do commercial mortgage rates vary so much?
Commercial rates vary because lenders assess risk differently. A strong owner-occupied business premises case with good accounts and a modest loan-to-value may price differently from a specialist property, a short trading history, a high loan-to-value or an investment property with a weak lease.
Does the Bank of England Bank Rate affect commercial mortgage pricing?
Yes, Bank Rate can influence lender funding costs and variable-rate pricing, but commercial mortgage pricing does not move in a simple one-for-one way. Lender appetite, funding lines, property risk and borrower strength also matter.
Can I get a fixed-rate commercial mortgage?
Fixed-rate commercial mortgages may be available, but the options depend on the lender and case. A fixed rate can help with payment certainty, while variable or tracker-style options may suit some borrowers who accept payment movement risk.
How can I improve the rate I may be offered?
You may improve lender appetite by preparing clear accounts, bank statements, property details, lease or tenant evidence, deposit source, repayment plan and any explanation for unusual trading or credit issues.
Do commercial mortgage rates include fees?
No. The interest rate only tells part of the cost story. You should also consider arrangement fees, valuation, legal costs, broker fees where applicable, insurance, early repayment charges and any refinancing or exit costs.
How should I compare commercial mortgage rate illustrations?
Compare them on the same loan amount, term, repayment basis and expected holding period. Check the starting rate, named reference rate and margin where applicable, rate after any fixed or introductory period, arrangement fees, valuation, legal and broker costs, early repayment charges, cash required and any conditions or expiry date. An illustration or indication is not a mortgage offer.
Are commercial mortgage rates higher than residential mortgage rates?
They often can be, because commercial lending can involve more risk, specialist property types and business income. However, pricing depends on the individual case and lender criteria.
Should I use a commercial mortgage calculator before enquiring?
A calculator can help you estimate repayments and loan-to-value, but it cannot confirm lender appetite. For a serious property purchase or refinance, use the figures as a starting point and ask for an adviser review.
External references used for this guide
Market context: the Bank of England Bank Rate page and July 2026 Monetary Policy Summary confirm the current policy rate and next decision date. Bank Rate influences wider borrowing costs, but it is not a quoted commercial mortgage rate.
Property-finance context: the British Business Bank commercial property finance guide explains that commercial mortgages may use fixed or variable rates and that lenders assess trading history. For the regulatory boundary and firm checks, use the FCA’s authorisation and regulation guidance.
Last reviewed: . Recheck Bank Rate, lender terms, fees and the regulatory position before relying on any rate illustration.