Commercial Mortgage Calculator
Work out monthly payments, loan to value, arrangement fees and — the number lenders actually decide on — interest cover from rent, on repayment or interest-only terms. No sign-up, nothing stored.
- Loan required
- £525,000
- Monthly payment
- £4,310
- Loan to value
- 70.0%
- Annual debt service
- £51,720
- Arrangement fee
- £7,875
- Interest cover (stressed)
- 117.2%
- Gross yield
- 8.0%
- Net cash flow after debt
- £8,280
Within typical lender limits
Rent against interest at your rate plus 2%
Before tax, management and voids
At 117.2% stressed interest cover you are below the 130% most commercial investment lenders require. Either reduce the loan, find a lender stressing at pay rate, or evidence a rent review — a broker knows which lenders do which before an application is ever submitted.
Indicative only. Excludes valuation, legal costs, SDLT and any lender-specific stress assumptions. Not a quote or a recommendation.
UK commercial mortgage rates by scenario
Ranges seen across the lenders we place with in 2026. Commercial pricing is negotiated rather than published, so treat these as the band your case should land in — the exact number depends on the asset, the covenant and your track record.
| Scenario | Indicative rate | Fees | Term | Notes |
|---|---|---|---|---|
| Owner-occupied commercial, ≤65% LTV | 7.0% – 8.5% p.a. | 1% – 1.5% arrangement | 5 – 25 years | Priced on trading accounts and affordability |
| Commercial investment, ≤65% LTV | 7.5% – 9.0% p.a. | 1.5% arrangement | 5 – 20 years | Needs 130%+ interest cover from rent |
| Semi-commercial, ≤70% LTV | 7.0% – 8.5% p.a. | 1% – 1.5% arrangement | 5 – 25 years | Often the cheapest route for a shop with flats above |
| Trading asset (care home, hotel, pub) | 8.0% – 10.5% p.a. | 1.5% – 2% arrangement | 10 – 25 years | Lent on EBITDA multiples, not just bricks |
| HMO / portfolio landlord | 6.5% – 8.0% p.a. | 1.5% – 3% arrangement | 5 – 25 years | Stress tested at pay rate plus 1%–2% |
A £750,000 semi-commercial purchase
A shop with two flats above, bought for £750,000 with a £225,000 deposit. The £525,000 loan at 7.75% over 20 years on capital repayment costs about £4,310 a month, or £51,700 a year.
Rent across the three units is £60,000. Stressed at 9.75%, interest alone is £51,200 — interest cover of 117%, short of the 130% most investment lenders want. Three routes fix it: a larger deposit taking the loan to £450,000, a lender that stresses owner-occupied trading income instead, or a five-year fix stressed at pay rate, which several lenders permit.
Total cost of ownership over the first year: £51,700 debt service, a £7,875 arrangement fee, roughly £1,500 valuation and £3,500 legals. That is the figure to compare against the rent, not the headline rate.
Have these figures checked against real lender criteria
Send us the four details every lender asks first and we will come back with indicative terms from lenders that actually write this asset class — including whether your interest cover clears their stress test before you pay for a valuation.
Email me these figures and indicative terms
Tell us the four things every lender asks first. We come back with realistic terms, usually the same working day.
Commercial mortgage questions, answered
How much deposit do I need for a commercial mortgage?
Typically 25%–35%. Owner-occupiers with strong accounts can reach 75%–80% loan to value; investment purchases usually cap at 65%–70%, and specialist trading assets at 60%–70% of market value.
How is affordability assessed on a commercial mortgage?
Investment lending uses interest cover — rent divided by the stressed interest payment — and most lenders want 130%–145%. Owner-occupied lending uses adjusted EBITDA against total debt service, generally wanting 1.25x–1.4x cover on the last two years of accounts.
What term and repayment basis can I get?
Five to twenty-five years, usually on capital repayment or part-and-part. Interest-only is available on investment cases at lower gearing, generally for the first three to five years rather than the whole term.
Are commercial mortgage rates fixed or variable?
Most are margin over Bank of England base or SONIA, with two- to five-year fixes available at a small premium. On a 20-year facility the margin and the fee structure matter more over the life of the loan than the headline day-one rate.
How long does a commercial mortgage take?
Six to twelve weeks from application to completion is normal: two to three weeks to valuation, two to four weeks to formal offer, then legals. Where speed matters, a bridging loan completes first and refinances onto the term facility afterwards.
Can I get a commercial mortgage through a limited company or SPV?
Yes — most commercial and semi-commercial lending is written to a limited company or SPV, usually with personal guarantees from the directors covering 20%–100% of the facility.