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Commercial property finance
Compare commercial mortgages, bridging loans, development finance and limited company buy-to-let from a panel of UK lenders. Free, no obligation.
- Commercial mortgages, bridging, development finance and limited company BTL
- Up to 75% LTV typical, higher with additional security
- For business and investment purposes only, not residential owner-occupier
- Independent commercial finance broker
Last updated: June 2026
What is commercial property finance?
Commercial property finance is the umbrella term for funding used to purchase, refinance, develop or release equity from property held for business or investment purposes. It covers several distinct products including commercial mortgages, bridging loans, property development finance and buy-to-let mortgages held through a limited company.
The right product depends on what you are buying, how long you need the funding, and whether the property is generating income from day one. A long-term owner-occupied office is usually funded with a commercial mortgage. A property bought at auction with a tight completion deadline is usually funded with a bridging loan. A new build or major refurbishment is usually funded with development finance.
FundingLinks brokers commercial property finance for business and investment purposes only. We do not broker residential mortgages for owner-occupiers, consumer buy-to-let, or any other FCA-regulated property finance product. If you need a residential mortgage on your home, we will direct you to an appropriately authorised broker.
How commercial property finance works
Five steps from identifying the property to drawdown.
- 01
Identify the property and the funding type
Choose the right product for your situation: commercial mortgage for long-term ownership, bridging for short-term or time-sensitive purchases, development finance for build and refurbishment, or limited company buy-to-let for rental investment.
- 02
Apply through FundingLinks
Share your business details, the property details, your deposit, and the funding amount needed. We submit to suitable lenders on the panel.
- 03
Receive offers in principle
Lenders typically respond within a few working days with indicative terms, including the loan amount, LTV, term, rate and fees.
- 04
Property valuation and legal work
Once you accept an offer, the lender instructs a valuation. Your solicitor handles the legal work alongside the lender's solicitor.
- 05
Completion and drawdown
On completion, the lender releases the funds. For development finance, funds are released in stages aligned to construction milestones.
Types of commercial property finance
Four core products cover most commercial property funding needs. The right choice depends on what you are buying and how long you need the funding for.
- Commercial mortgages
- A long-term loan to buy or refinance commercial property such as offices, warehouses, retail units, healthcare premises or hotels. Terms typically run 3 to 25 years, with a maximum loan-to-value of 65% to 75%. Available for owner-occupied businesses and investment purposes.
- Bridging finance
- Short-term funding, typically 1 to 18 months, used for time-sensitive property purchases (auctions, chain breaks), refurbishment before refinancing, or releasing equity quickly. Faster to arrange than a mortgage but at higher cost. Secured against the property.
- Property development finance
- Funding for new builds, conversions and heavy refurbishments. Released in stages aligned to construction milestones, with interest charged only on drawn funds. Covers land, build costs and professional fees. Usually needs a clear exit strategy (sale or refinance to long-term).
- Limited company buy-to-let
- Mortgages for rental property held through a limited company structure. Affordability is assessed primarily on projected rental income. Mortgage interest is generally deductible as a business expense. Available for single units and portfolios.
Commercial mortgage vs bridging vs development finance
The three core property finance products side by side. The right choice usually comes down to how long you need the funding, what state the property is in and how quickly you need to complete.
| Feature | Commercial mortgage | Bridging finance | Development finance |
|---|---|---|---|
| Typical use case | Long-term ownership of completed property | Time-sensitive purchase or short-term need | New builds, conversions and heavy refurbishments |
| Term length | 3 to 25 years | 1 to 18 months | Aligned to build programme, often 12 to 24 months |
| Speed to complete | Weeks to months | Days to weeks | Weeks |
| Loan-to-value typical | Up to 75% | Up to 75% (gross) | Up to 65% of GDV, up to 90% of build costs |
| Interest rate typical | 6% to 12% p.a. | 0.55% to 1.5% per month | 9% to 15% p.a. (drawn balance) |
| Repayment | Monthly principal and interest | Often rolled up, paid on exit | Rolled up, paid on exit |
| Exit route required | Through end of term | Yes (sale or refinance) | Yes (sale or refinance) |
| Suitable for | Established businesses with steady income | Property investors, time-pressured deals | Developers and investors with build experience |
Indicative ranges based on UK market conditions in May 2026. Actual terms depend on the property, the borrower's profile, the deposit and the security available.
What does property finance cost?
Property finance has several cost layers beyond the headline interest rate. Understanding them up front avoids surprises at completion.
Interest rate. Varies by product. Commercial mortgages 6% to 12% p.a., bridging 0.55% to 1.5% per month, development finance 9% to 15% p.a. on the drawn balance.
Arrangement fee. Typically 1% to 2% of the loan amount, often added to the loan rather than paid upfront.
Valuation fee. Paid to a surveyor, typically £500 to £2,500 depending on property value and complexity. Larger or specialist properties cost more.
Legal fees. Both your solicitor and the lender's solicitor. Lender legal fees are usually paid by the borrower. Expect £1,500 to £5,000 in total for a straightforward case.
Exit fee. Some bridging and development products charge an exit fee, typically around 1% of the loan amount. Not all lenders apply this.
Stamp duty. Stamp Duty Land Tax (England and Northern Ireland), Land Transaction Tax (Wales) or Land and Buildings Transaction Tax (Scotland), payable on the purchase. Rates depend on the property value and location. For commercial property in England, the headline rates are 0% up to £150,000, 2% between £150,001 and £250,000, and 5% on the portion above £250,000.
Business rates. An ongoing cost, not a finance cost, but worth factoring into affordability. Rates depend on the property's rateable value.
This is general guidance, not tax or legal advice. Stamp duty, land tax, business rates, deductibility of mortgage interest, and the tax treatment of property held through a limited company all depend on your specific circumstances. Always speak to a qualified accountant or tax adviser, and a property solicitor, before committing.
Is commercial property finance right for your business?
Commercial property finance suits businesses and investors buying, refinancing or developing property for business use.
-
The property is for business or investment use
Commercial premises (offices, warehouses, retail, hospitality, healthcare), property development sites, or buy-to-let property held through a limited company. Not residential owner-occupier purchases.
-
You have a deposit ready
Most products require 25% to 35% deposit (sometimes more for development or higher-risk properties). Some commercial mortgages can go higher LTV with additional security.
-
You have a clear repayment or exit plan
For mortgages, monthly affordability through trading income or rental income. For bridging and development, a defined exit (sale, refinance to a mortgage, or letting).
-
You can demonstrate trading or investment experience
Most lenders want to see trading history (typically 2+ years) for commercial mortgages, or development experience for development finance. First-time developers are sometimes financed at lower LTVs.
-
Your business structure works for the lender
Commercial property is usually held in a trading company or a special purpose vehicle (SPV). Buy-to-let through a limited company is now the standard structure for portfolio investors.
Pros and cons of property finance
Owning your premises or building a portfolio can build long-term value, but the upfront commitment and illiquidity matter.
Pros
- Control of your premises, no rent increases or break clauses to manage
- Potential capital appreciation as the property value grows
- Mortgage interest is usually deductible as a business expense (subject to your tax position)
- Larger facilities available than most other commercial lending
- Long terms available, spreading the cost across decades for commercial mortgages
- The property itself is the primary security, often reducing other collateral requirements
Cons
- Significant capital tied up in deposit, legal fees, valuation and stamp duty
- Property values can fall, leaving negative equity in worst cases
- Maintenance, insurance, business rates and compliance are all your responsibility
- Property is illiquid, exit is slower than for most other business assets
- Bridging and development can be expensive if the exit is delayed
- Personal guarantees usually required from directors, even with the property as security
How FundingLinks finds your property finance
We help you compare the market without sending your details to unsuitable lenders.
- 01
Tell us what you need
Share your business or investment details, the property type, the amount needed, your deposit, and whether you have a target completion date.
- 02
We compare lenders
We compare offers from 100+ UK lenders, including specialist commercial property lenders, challenger banks and high-street banks.
- 03
Receive offers in principle
Review the indicative terms (LTV, rate, term, fees). Pick the offer that fits.
- 04
Through to completion
We support you through valuation, legal work and drawdown. For development finance, we stay involved through staged releases.
Why businesses choose FundingLinks
Specialist support for UK SMEs and property investors comparing commercial property finance.
- 100+
- UK lenders compared
- 500+
- SMEs funded
- 35+ years
- Combined commercial finance experience
Specialist, founder-led support
Founded by Sam Wells and Chris Findlow, with 35+ years' combined experience in commercial finance. You speak to specialists, not a call centre.
Clear process, secure portal
Track your enquiry, review lender offers and exchange documents in one secure portal. No email chains, no spreadsheets, full visibility from enquiry to drawdown.
Free to compare, success-based fees
No upfront charge to use FundingLinks. Fees apply only if you proceed with a facility, and they are agreed in writing before you commit.
Property finance FAQs
Direct answers to the questions business owners and investors ask most often about commercial property finance.
What is commercial property finance?
Commercial property finance is the umbrella term for funding used to buy, refinance, develop or release equity from property held for business or investment purposes. It includes commercial mortgages, bridging loans, property development finance, and buy-to-let mortgages held through a limited company. It does not cover residential mortgages for owner-occupiers.
Does FundingLinks broker residential mortgages?
No. FundingLinks is not FCA-authorised, so we only broker unregulated commercial property finance. This includes commercial mortgages on commercial property, bridging loans on commercial or investment property, property development finance, and limited company buy-to-let. We do not broker residential mortgages for owner-occupiers or consumer buy-to-let. If you need a regulated mortgage on your home, we will direct you to an authorised broker.
What is the difference between a commercial mortgage and a bridging loan?
A commercial mortgage is a long-term loan (3 to 25 years) used to buy or refinance commercial property, with monthly repayments. A bridging loan is short-term (1 to 18 months), often used when speed matters (auctions, chain breaks) or when the property is not yet mortgageable (needs refurbishment). Bridging interest is higher and is usually rolled up and paid on exit.
What is development finance?
Development finance funds new builds, conversions and heavy refurbishments. It is released in stages aligned to construction milestones, with interest charged only on the drawn balance. The loan is typically repaid when the completed development is sold or refinanced onto a long-term mortgage. Lenders usually fund up to 65% of gross development value and up to 90% of build costs.
What deposit do I need for commercial property finance?
Typically 25% to 35% for a commercial mortgage (75% maximum loan-to-value is the most common cap). Development finance often requires the developer to fund the land equity, with the lender providing build costs. Higher LTV is sometimes possible with additional security or strong trading history.
How long does it take to complete a commercial property purchase?
A straightforward commercial mortgage typically takes 6 to 12 weeks from application to completion, depending on valuation and legal complexity. Bridging loans can complete in 2 to 4 weeks, and in some cases within a few days for clean cases. Development finance varies depending on the complexity of the project and planning status.
Can I get property finance through a limited company?
Yes. Limited company structures are now standard for buy-to-let investors and for property development. Commercial mortgages and development finance are routinely written to limited companies and special purpose vehicles. Lenders will typically require personal guarantees from the directors.
Will I need to provide a personal guarantee?
Usually yes, even when the property itself is the primary security. Personal guarantees give the lender recourse to directors or shareholders if the property value does not cover the loan on default. For some larger or asset-rich borrowers, personal guarantees can be limited or waived.
Is property finance tax deductible?
For property held by a limited company, mortgage interest is generally deductible as a business expense, which improves cash flow. For property held personally, mortgage interest relief on residential buy-to-let has been restricted in recent years. This is general guidance, not tax advice. The right structure for your circumstances depends on your wider tax position. Always speak to a qualified accountant or tax adviser before deciding how to hold a property.
Is commercial property finance regulated?
Most commercial property finance to limited companies and investors is unregulated. Residential mortgages for owner-occupiers and consumer buy-to-let are FCA-regulated and require an authorised broker. FundingLinks operates exclusively in the unregulated commercial space.
Related products
Other funding options that can work alongside, or instead of, commercial property finance.
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Written by
Sam Wells
Co-Founder, FundingLinks
Sam Wells co-founded FundingLinks alongside Chris Findlow, after more than 10 years in invoice finance and alternative lending, including senior broker and partnership roles at Kriya. He helps SMEs access competitive funding by matching them with the right lender, product and structure for their stage of growth.
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