Best Rates for Commercial Mortgages in the UK (2026 Guide)

In 2025, commercial lending volumes in the UK quietly climbed again, even while residential borrowing slowed. That tells you something important. Serious investors are still moving. They are just moving smarter.

If you are searching for the best rates for commercial mortgage, chances are you are not browsing out of curiosity. You are either eyeing a new unit, refinancing an office, purchasing a mixed use building, or trying to reduce your monthly exposure. Every fraction of a percent matters. On a £750,000 loan, even a 0.5 percent difference can mean thousands saved annually.

Let’s break it down properly.

What Is a Commercial Mortgage Rate in 2026?

A commercial mortgage interest rate is the percentage charged by a lender for borrowing against business property. Unlike residential rates, these are tailored to risk, asset type, and your experience.

In 2026, typical commercial mortgage rates UK range between 5.5 percent and 8.5 percent. Prime borrowers with strong financials and low loan to value ratios may secure lower rates. Specialist cases sit higher.

Rates depend on:

• Loan to value ratio
• Business trading history
• Property type
• Location
• Credit profile
• Rental income strength

High street banks often advertise attractive headline figures. The real question is whether you qualify for them.

What Are Commercial Mortgage Loans?

Commercial mortgage loans are secured against business property such as:

• Retail units
• Warehouses
• Offices
• Mixed use buildings
• Semi commercial properties

They can be used for purchasing, refinancing, expansion, or releasing capital.

If you are comparing them to a bridging loan quick solution, remember the difference. Bridging finance is short term and speed focused. Commercial mortgages are long term and cost focused. One solves urgency. The other builds stability.

Many investors actually use both strategically.

Also Read – Auction Property Buying Using an Auction Bridging Loan

Can I Get a Commercial Mortgage?

Short answer: probably yes. The better question is under what terms.

Lenders look at three core areas:

1. The property
2. The business
3. You

If the property generates stable rental income and you have experience in the sector, approval becomes easier. First time investors may need stronger deposits or additional security.

If you are wondering, “can I get a commercial mortgage with bad credit?” the answer is still yes in many cases. Specialist lenders exist specifically for this scenario. Expect higher rates and stricter terms, but it is far from impossible.

I recently worked with an investor who had historic credit blips from the pandemic period. High street banks declined him instantly. A specialist lender structured a deal at 7.9 percent with a 65 percent loan to value. Not perfect, but it unlocked a strong yielding property. Sometimes the deal matters more than the rate.

How to Secure the Best Rates for Commercial Mortgage

Finding the best rates for commercial mortgage is rarely about walking into your local bank.

Here is what actually moves the needle:

1. Lower Your Loan to Value

The closer you are to 60 percent loan to value, the stronger your negotiating position. At 75 percent, rates usually climb.

2. Show Clear Income Strength

If the property has strong tenants on long leases, lenders feel comfortable. Stability reduces perceived risk.

3. Improve Your Credit Profile

Clean up outstanding issues before applying. Even small improvements can shift your commercial mortgage interest rate.

4. Use a Specialist Broker

Commercial lending is relationship driven. Brokers understand which lenders favour which property types. They also know who will consider semi commercial stock or refurbishment cases.

If you are exploring a development opportunity, you might also want to review development loan UK options alongside long term finance. Timing both correctly can reduce overall borrowing costs.

Comparing Commercial Mortgage Rates UK Properly

Here is a common mistake. Borrowers focus only on headline interest rates.

Look deeper.

• Arrangement fees
• Exit fees
• Valuation costs
• Early repayment charges
• Flexibility on overpayments

A slightly higher rate with lower fees can work out cheaper over five years. That is why serious investors analyse the full cost of borrowing, not just the surface number.

When a Bridging Loan Makes More Sense

If you are purchasing at auction or need completion within 14 days, commercial mortgages simply move too slowly.

That is where a bridging loan quick option becomes useful. Secure the asset fast, stabilise it, then refinance onto a long term commercial product at better rates.

Smart structuring often saves more money than chasing the lowest possible rate upfront.

Also Read – Avoid High Risks and Hidden Fees in Unregulated Bridging Loans

Make the Rate Work for You

The search for the best rates for commercial mortgage should not feel like a guessing game. Rates vary because circumstances vary.

If you understand your loan to value, your exit strategy, and your risk profile, you already have leverage.

Commercial finance is not about finding a cheap deal. It is about finding the right one.

If you are ready to compare commercial mortgage rates UK, explore specialist lenders, or structure a deal that fits your strategy, speak with an experienced adviser at The Best Bridging Loans. A well structured loan today can strengthen your portfolio for years.

FAQs

• What is commercial mortgage rate in the UK right now?

In 2026, rates typically range from 5.5 percent to 8.5 percent depending on risk, loan to value, and borrower strength.

• Can I get a commercial mortgage with bad credit?

Yes, specialist lenders offer options. Expect higher rates and possibly lower loan to value limits.

• What are commercial mortgage loans used for?

They are used to purchase, refinance, or release capital from business property such as offices, retail units, and warehouses.

• How much deposit do I need?

Most lenders require 25 to 40 percent deposit, though lower loan to value ratios usually unlock better rates.

• Is a bridging loan better than a commercial mortgage?

They serve different purposes. Bridging loans are short term and fast. Commercial mortgages are long term and cost efficient. Many investors use both strategically.