Stop paying rent on a building you could own.
A commercial mortgage turns a monthly rent into a monthly repayment on an asset you keep. It is slower to arrange than most business borrowing, and usually the cheapest money available to you.
Owner-occupier or investment — two different conversations
If your business will trade from the building, lenders assess your trading profits and can often lend a higher proportion of the value. If you are buying to let it out commercially, they assess the rent the property produces and the strength of the tenant instead.
Either way expect to put in a deposit of 25–40%, a valuation, and legal work on both sides. Terms usually run 15 to 25 years, on a What this meansThe interest rate stays the same for an agreed period, so your payments do not change even if the Bank of England moves rates. for an initial period or on a rate tracking the What this meansThe interest rate set by the Bank of England. Most lenders price their own rates from it, so when it moves, borrowing costs usually follow..
When buying beats renting
The sums usually work when you are settled, profitable and planning to stay put.
Typically a good fit when
- Your rent is close to what a mortgage payment would be
- The business is stable enough to commit to a location for a decade
- You have 25–40% of the purchase price available as a deposit
- The building suits your operation without heavy modification
- You want the asset on the balance sheet rather than the landlord’s
What the process actually involves
Rates are usually quoted as a margin over the What this meansThe interest rate set by the Bank of England. Most lenders price their own rates from it, so when it moves, borrowing costs usually follow. or as a fixed rate for two to five years. Expect an arrangement fee, a valuation fee, and legal costs for both sides — budget for these upfront rather than being surprised by them.
Six to twelve weeks from application to completion is realistic. If the deadline is tighter than that, bridging finance buys time and is then refinanced onto a commercial mortgage — at a cost worth weighing.
Questions we are asked most
How much deposit do I need?
Typically 25–40% of the purchase price. Owner-occupiers can sometimes borrow more of the value than investors, because the lender can assess your trading profits as well as the building. Additional security elsewhere can reduce the cash needed.
Can my pension buy the premises?
Frequently, yes — a SIPP or SSAS can buy commercial property and lease it back to your business, and can usually borrow up to 50% of the fund value to do it. It is a genuinely useful structure and one where your accountant and we should be in the same conversation early.
What if the building needs work?
Lenders lend against what a property is worth now, not what it will be worth once refurbished. If substantial work is needed, development finance or a bridge covers the build, and a commercial mortgage refinances it afterwards.
Work out whether buying beats renting for you.
Send us the asking price and your current rent, and we will run the comparison.
Or email info@nemekfinance.co.uk · Call 07483 159369
No obligation, no credit check to talk, and a straight answer if finance is not the right move.