Commercial Mortgage Calculator
Use our free commercial mortgage calculator to find out the costs of taking out a new commercial mortgage.
Our calculator allows you to work out your mortgage repayment on both an interest only and capital repayment basis.
Monthly Costs
How do I use the commercial mortgage calculator?
Step 1 – Input your desired loan amount. The maximum loan to value (LTV) is usually 75% of the property value. You can calculate the LTV by multiplying the property value by the desired LTV and then pressing the percent key on your calculator.
For example, for 75% LTV on a £200,000 property you would input 200,000×75%. The result in this case would be £150,000.
Step 2 – Input the interest rate that you’re likely to pay. Information on likely rates based on a number of circumstances can be found further down the page.
Step 3 – Finally, input the number of years you’d like to borrow over. Terms between 3-25 years are usually realistic for commercial lending.
Once you’ve done this, hit calculate and your results will be shown.
Example interest rates
Our commercial mortgage calculator will give you accurate figures based on the figures that you input.
If you need to understand the likely costs of taking out finance, it’s important that you input accurate figures.
To help do that, we have put together a guide below to the commercial mortgage rates, maximum loan to value (LTV) and lender arrangement fees that you’re likely to face.
owner-occupied
High street banks –
Rate – 5%
LTV – 80%
Lender arrangement fee – 1.5%
Repayment only
Challenger banks –
Rate – 6.5%
LTV – 75%
Lender arrangement fee – 1.5%
Interest only or repayment
Specialist commercial lenders – Rate – 7.75%
LTV – 70%
Lender arrangement fee – 2.5%
Interest only or repayment
commercial investment
High street banks –
Rate – 5.5%
LTV – 65%
Lender arrangement fee – 1.5%
Capital repayment only
Challenger banks –
Rate – 7%
LTV – 75%
Lender arrangement fee – 1.5%
Interest only or repayment
Specialist commercial lenders –
Rate – 7.5%
LTV –70%
Lender arrangement fee – 2.5%
Interest only or capital repayment
Which lender type will I qualify for?
High street banks offer the best pricing, but only look to take on the lowest risk applications.
Therefore, to qualify for a commercial mortgage from a high street bank, you must have a strong application with strong affordability, a good credit history and a high quality property.
Challenger banks are more flexible, offering a balanced approach, stretching affordability rules a little further and taking a view on the odd blip on your credit file.
Finally, specialist commercial lenders take on riskier applications, so if you have a poor credit history or little trading history, you are likely to require a specialist commercial lender.
How much can I borrow?
It’s usually possible to borrow up to 80% of your property value, meaning the remaining 20% must be made up of the applicants’ equity. Commercial investment applications can usually be arranged up to a maximum of 75% LTV.
In addition to the deposit, most applications come with other costs, such as the arrangement fee, surveyors’ fees and legal costs.
Of course, stamp duty must also be considered. Commercial stamp duty rates differ from residential rates, so care must be taken to ensure you understand the charges for your property.
