Industrial Unit Mortgage
An industrial unit mortgage funds the purchase or refinance of a warehouse, workshop, trade counter or light industrial unit, over five to twenty-five years. Owner-occupiers can reach 75% of value because affordability is assessed on the trading business; investors are generally capped at 70% with rental interest cover of 130% or better. Pricing sits around 7% to 9% per annum with a 1%–1.5% arrangement fee. Industrial is currently among the better-supported asset classes in UK commercial lending — low vacancy and firm rents mean lenders compete for it, which is worth using.
Criteria and pricing
What lenders on our panel will typically do on this product today.
- Loan to value
- Up to 75% owner-occupied; 70% investment
- Rate
- ≈ 7% – 9% p.a.
- Term
- 5 – 25 years
- Repayment
- Capital repayment, part-and-part, or interest-only at lower LTV
- Interest cover
- 130% – 145% on investment cases
- Debt service cover
- 1.25x – 1.4x EBITDA for owner-occupiers
- Arrangement fee
- 1% – 1.5%
- Loan size
- £150,000 – £15m
- Borrower
- Trading company, SPV or individual
Worked example — owner-occupied trade unit
- Purchase price
- £850,000
- Loan at 70% LTV
- £595,000
- Rate over 20 years
- 7.85% p.a.
- Monthly payment (repayment)
- ≈ £4,920
- Current rent paid on the same unit
- £58,000 p.a.
- Annual debt service
- ≈ £59,000
- Arrangement fee at 1.25%
- £7,437
- Net effect
- Similar annual outlay, with the asset acquired
Figures are typical UK market ranges as at 2026 and are indicative only — your terms depend on the asset, the exit and the lender we place the case with.
Who this works for — and who it does not
You are likely to qualify if
- Two years of filed accounts, or projections plus a strong order book for a younger business
- Deposit of 25%–30% plus SDLT and professional costs
- For investment purchases, a tenant and lease supporting 130% stressed cover
- Clean title with no significant contamination or unresolved environmental issues
- Directors' personal guarantees on most company facilities
This is the wrong product if
- Assets with untreated contamination or no environmental report
- Units with short unexpired leaseholds — under about 70 years narrows the lender pool sharply
- Speculative purchase with neither a tenant nor an occupier
- Borrowers needing completion in under four weeks — bridge first, then refinance
What actually happens, and when
- Week 1
Affordability shaped
Owner-occupied cases turn on adjusted EBITDA; investment cases on interest cover. We establish which test you are being measured by before approaching lenders.
- Week 1–2
Agreement in principle
Terms from lenders with real industrial appetite in your region and price band.
- Week 2–5
Valuation and credit
Red book valuation, environmental review where required, and credit approval.
- Week 5–10
Offer and completion
Formal offer then legals. Six to ten weeks end to end is the realistic range.
Frequently asked
Request indicative terms
Four details are all a lender needs to price a case: how much, what secures it, when you need it and how it is repaid. Send those and we come back with realistic terms — or tell you plainly that the case will not place.
Request indicative terms
Tell us the four things every lender asks first. We come back with realistic terms, usually the same working day.