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
Share your funding amount, security, timing and repayment plan. A specialist will review the case and discuss suitable funding options, subject to lender assessment.