Illustration — not a quote
- Loan amount
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- Loan to value
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- Monthly payment
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- Total interest over the term
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- Total repaid
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Excludes arrangement, valuation and legal fees, and stamp duty. Assumes a fixed rate for the whole term.
How does the commercial mortgage calculator work?
It takes the property value, subtracts your deposit, and calculates a standard monthly repayment at a fixed annual rate. Interest-only shows the interest alone, with the full loan still due at the end. The default 7% rate is just an example. Use a rate you've actually been offered.
How much deposit do you need for a commercial mortgage?
Usually around a quarter. NatWest says that, as a guideline, 25% of the property's value is typically required as a deposit. NatWest lends from £25,001 to £10m on a fixed rate, over terms of up to 25 years.
What do lenders look at?
The British Business Bank says lenders look at your business's trading history, and you'll usually need accounts for at least the past three years plus projected trading figures. It notes commercial mortgages usually run for one to 30 years, at higher rates than residential mortgages. For a commercial buy-to-let, the rent and the tenant matter as much as the business.
Using it to test a bridge exit
If you're buying with a commercial bridging loan and plan to refinance, run the refinance here first:
- Enter the value you expect once the property is let or improved.
- Set the deposit to the equity you'll have left after repaying the bridge.
- Check that the rent or trading profit comfortably covers the monthly payment.
Our partner places commercial mortgages as well as bridging. For how bridging fits in, see bridging loans for property investors.
What else does it cost?
Stamp duty and its equivalents in Wales and Scotland, plus fees. The British Business Bank sets out the non-residential rates for each nation. NatWest notes that arrangement and security fees may apply.