Commercial mortgage lenders in the UK and what each will fund

It is the first question to answer, because commercial mortgage lenders set their appetite around it. An owner-occupier mortgage is for a business buying or refinancing premises it trades from; the lender looks mainly at the business's profits. An investment mortgage is for a landlord buying property to let; the lender looks mainly at the rent and the tenant.

Ortus, TAB and Westwood list commercial mortgages without stating which borrowers they target. Our guide to commercial mortgages explains how they work: a long-term loan secured on business premises or investment property, usually at a lower loan-to-value than a home mortgage, with the lender looking at either trading profits or rent.

• Purpose. Owner-occupied, investment or semi-commercial, as above.
• Loan size. Banks publish minimums of £25,001; some specialists start at £250,000 or more.
• Loan-to-value. Most publish 70% to 75%, so expect to put in a deposit of 25% or more.
• Term and repayment. Up to 25 or 30 years; interest-only is offered by several lenders.
• Rate type. Fixed, variable or base-rate linked, and what break costs apply if you repay a fixed rate early.
• Borrower type. Some lend only to limited companies and LLPs; others to sole traders, partnerships, SIPPs and SSAS schemes.
• Experience. Investment lenders may ask for a track record of managing commercial property.

The table comes from each lender's Capzy profile, which records only what the lender publishes on its own site. Lenders are in alphabetical order. We do not rank or rate them, and a published range is not an offer.

Other lenders are listed in our lender directory.

• Barclays: commercial mortgages from £25,001, secured on business premises, with fixed-rate terms of 1 to 10 years, variable options and a capital repayment holiday. Breakage costs apply if a fixed rate ends early.
• Ortus Secured Finance: lists a commercial mortgage of up to £25m on its FAQ page, with no further detail published.
• Redwood Bank: £250,000 to £10m (single asset up to £6.5m) for up to 30 years, for owner-occupiers and professional landlords in England, Scotland and Wales, including retail, offices, warehouses and manufacturing property. Owner-occupiers need at least three years of accounts.
• Roma Finance: RomaPRO commercial mortgages over up to 25 years, with semi-commercial loans up to £2m at up to 70% LTV.
• Santander UK: from £25,001 over up to 25 years, secured on a business's trading premises, for businesses with turnover over £250,000. It is not available for real estate investment.
• TAB: lists commercial mortgages alongside its bridging loans, with no product limits on the pages read.
• Together: £50,000 to £5m against commercial, semi-commercial property or land, with standard lending up to 70% LTV and a minimum 30% deposit or equity.
• TSB: from £25,001 over up to 25 years, up to 70% of property value and in some cases more, base-rate or fixed. An existing TSB account is needed.
• Westwood Capital Finance: interest-only commercial mortgages of £100,000 to £2m on first or second charges.
• YBS Commercial Mortgages: owner-occupier loans of £500,000 to £3m at up to 75% LTV over 5 to 25 years; investment loans of £300,000 to £20m; semi-commercial of £400,000 to £20m at up to 75% LTV. It lends to limited companies and LLPs in England and Wales, through brokers.

For an owner-occupier, the lender wants to see that trading profits cover the repayments. Redwood Bank, for example, assesses at least the most recent three years of trading accounts, and Santander sets a minimum turnover of £250,000.

For an investor, the lender looks at the rent, the lease and the tenant, and tests whether rent covers the interest. YBS says it assesses affordability against interest cover and debt service cover tests, asks for two years' experience managing commercial assets, and for semi-commercial property needs the commercial part let on a full repairing and insuring lease. Our guides to loan-to-value and interest cover explain the two main tests.

• A valuation by the lender's panel valuer, usually paid by you.
• Accounts, management figures and bank statements for the business.
• Lease and tenancy details for let property.
• Details of the deposit and where it comes from.
• A personal or director's guarantee in some cases; TSB, for instance, says a director's guarantee is required when a limited company borrows.

None of the lenders here publishes a rate card for commercial mortgages; rates are set case by case. Beyond the rate, budget for an arrangement fee, the valuation, legal fees for both sides and stamp duty land tax on a purchase. Our guide to stamp duty on commercial property covers the tax.

Most commercial mortgages are unregulated. Under article 61(3)(a) of the Regulated Activities Order, a mortgage is a regulated mortgage contract where credit is provided to an individual or trustees, secured on land, and at least 40% of that land is used, or intended to be used, as or in connection with a dwelling, unless an exclusion in article 61A applies. A loan to a company, or on a building that is mainly commercial, generally falls outside. A sole trader buying a shop with a flat above that they will live in may be in a different position. This is a general description, not legal advice.

Capzy is a credit broker, paid by the lender. We introduce businesses and property investors to commercial mortgage lenders whose criteria fit the property and the borrower. You can check your eligibility with a soft search that does not affect your credit score. A lender's full application may involve a hard search and a valuation, and any offer is subject to status and lender criteria. Capzy does not give legal or financial advice. For mixed-use buildings, see our guide to semi-commercial mortgages.