What is different
- No rate tables. You cannot compare products online; every quote is bespoke. An adviser is how you see the market.
- Bigger deposit. 25% to 35%, not 10%.
- The business is underwritten, not just you. Accounts, statements, forecasts.
- Fees are larger and partly non-refundable (the valuation) before you know the answer.
- Personal guarantees if borrowing through a company.
- Slower. Six to twelve weeks is normal; a high street bank can take longer.
- Not regulated, in most cases: no standard illustration, no ombudsman for a company. The offer letter is the contract; read it.
Coming from residential buy-to-let
Commercial investment is tested on the tenant and lease rather than a formula, yields are higher, voids are longer, and the tenant usually repairs and insures. Lenders want to see landlord experience; three or more residential lets counts. Semi-commercial is the natural first step: familiar residential income plus a commercial unit, and cheaper stamp duty. Semi-commercial explained.
Coming from renting your premises
The strongest case in the market if the business has been paying rent reliably for years: the mortgage payment replaces the rent, the accounts prove serviceability, and the lender can see the business in situ. Get a redemption-style picture of what the landlord would sell for; many will, and some will help with the price to avoid a void.
Starting a business that needs premises
The hardest case. Lenders want relevant experience, a bigger deposit (35% to 40%), a business plan with forecasts an accountant has reviewed, and personal financial strength. Buying an existing business with its accounts is much easier than a start-up. Consider leasing first with an option to buy, and coming back with two years' accounts.
How to give yourself the best chance
- Read what lenders look for and build the file before you talk to anyone.
- Get indicative terms from an adviser before you commit to a property; it sets your budget and stops wasted valuation fees.
- Use a commercial property solicitor, not the conveyancer who did your house.
- Have the deposit, the fees and three months' working capital in cash, evidenced.
- Decide the borrowing structure (company or personal) with an accountant first.
A note on the numbers. Rates, loan-to-value limits, fees and criteria are typical figures at the time of writing (2026). Commercial lending is priced case by case, so your own terms depend on the property, the business, the tenant and you. This is information, not advice, and not an offer of finance.
Quick answers
Is it worth buying rather than renting my premises?
Often, if you will be there ten years or more: the payment is fixed rather than rising with rent reviews, and you own an asset at the end. It ties up capital and reduces flexibility, so it depends on the business's plans.
Can I use my house as the deposit?
You can raise money on your home (a remortgage or second charge) to fund a deposit, or offer it as additional security. Both put your home at risk; think carefully and take advice.
Ready to talk to someone who can actually arrange it?
Tell us about the property and the business, and a commercial finance adviser will come back with which lenders fit, what rate to expect and what they'll want to see. No fee for the conversation, no obligation.