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How could a commercial mortgage support me?

A commercial mortgage could help you spread the cost of moving to new business premises or expanding to multiple locations. It can also help you buy rental properties to build or expand your buy-to-let portfolio.

As a loan secured against company property, it could be more cost-effective than a business loan*. 

You can also remortgage a commercial property with us to release cash for your business or save money on an existing loan.

Buy-to-Let Limited Company Mortgage

If you’re a Limited Company who solely buys, sells or lets property, we could support you with buying or remortgaging your residential or commercial properties.

  • Mortgage terms up to 25 years
  • Up to 70% Loan to Value (LTV) ratio 
  • Fixed and variable interest rate options

Enquire about a commercial mortgage

Talk to a specialist

Talk to a specialist

For businesses with a turnover up to £3 million, call 0345 072 5555.

For businesses with a turnover between £3 million and £25 million, speak to your Relationship Manager or call 0800 022 4378.

We’re available from 9am to 5pm, Monday to Friday, except public holidays.

Why choose a commercial mortgage?

Spread the cost

Apply for a minimum of £25,001 and choose a term from 3 to 25 years to suit your business needs.

Repayment holiday options

Capital repayment holidays are available at the start of some commercial mortgages.

Flexible purpose

Support the purchase or remortgage of business-occupied premises or build your property investment portfolio.

Are you eligible?

 
  • For new and existing customers.
  • The property you want to mortgage must be for business use.
  • You’ll need to be a sole trader, partner or director with authority to borrow on behalf of your business.
  • You’ll need to be aged 18 or over.

What we’ll need to know

How much you would like to borrow.

How much you would like to borrow.

Why you need the premises.

Why you need the premises.

What term you would like to make the repayments over.

What term you would like to make the repayments over.

Keep in mind

 
  • Your commercial mortgage will be secured against the property you are mortgaging.
  • Your business will be charged an arrangement fee and may be charged security and valuation fees.
  • For interest only mortgages, the actual amount borrowed doesn’t reduce during the life of the mortgage. You’ll need to repay the full capital amount at the end of the mortgage term.
  • If you repay part, or all, of your fixed rate mortgage before the end of the agreed term then you may need to pay an early repayment fee. This could be substantial. This fee does not apply to bank-rate linked loans.
  • We will require a first legal charge over the property being proposed as security. This means if you’re re-mortgaging an existing property, you must repay any loan secured on it at completion.

Calculate your repayments if the Bank Rate changes

Calculate your repayments if the Bank Rate changes

If you take out a variable rate commercial mortgage, the amount of interest you pay will change if the Bank of England Bank Rate changes.  If you have a fixed-rate commercial mortgage, your rate could switch to the Bank Rate at the end of your term.

Our calculator shows you how changes to the Bank Rate could affect your monthly repayments. 

Use our calculator

FAQs

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Lending appeals

Appeals, has your Business Finance been declined? You can ask for the decision to be reviewed

The right type of funding can play a vital role in helping your business reach its potential. If your lending application is declined, we will work with the British Bankers’ Association to pursue any raised appeals.

Find out more about lending appeals

ANY PROPERTY GIVEN AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT.

All lending is subject to status. Security may be required.

*Arrangement fees, security fees and valuation fees may apply when you take a commercial mortgage so you’ll need to take these into consideration when comparing it against a business loan.

All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your business.

You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.

There is always a possibility that interest rates may go down leaving a fixed rate loan at a higher level compared to a variable rate loan. However, if interest rates rise, a fixed rate loan will remain at the same rate.

Making sure you get a fair deal

We want you to find a product that's right for your circumstances, which is why we adhere to the Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board.

To find out more you can read the statement of responsibilities, which details what's expected of us, the lender and you the borrower.

Important Legal Information

Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.

The products and services outlined on this site may be offered by legal entities from across Lloyds Banking Group, including Lloyds Bank plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc and Lloyds Bank Corporate Markets plc are separate legal entities within the Lloyds Banking Group.

Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.

Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.

Authorisation can be checked on the Financial Services Register at www.fca.org.uk under the Firm Registration Number 119278.