Free Commercial Mortgage Calculator
Find out how much a commercial mortgage could cost you.
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
The calculator will offer you accurate figures, based on the information input. If the figures input are incorrect, then the figures will be of little help to you.
Of course, it’s simple to input the mortgage amount and your chosen term, but the interest rate can be trickier.
The rate and lender fee offered will vary depending on whether your property will be owner-occupied (often called business mortgages), or used as a commercial investment property.
Below are a number of products that can be used as example figures for the purpose of the business mortgage calculator.
owner-occupied
High street banks –
Rate – 2.6%
LTV – 80%
Lender arrangement fee – 1.5%
Repayment only
Challenger banks –
Rate – 4.35%
LTV – 70%
Lender arrangement fee – 1.5%
Interest only or repayment
Specialist commercial lenders –
Rate – 6.99%
LTV – 65%
Lender arrangement fee – 2.5%
Interest only or repayment
commercial investment
High street banks –
Rate – 3%
LTV – 60%
Lender arrangement fee – 1.5%
Repayment only
Challenger banks –
Rate – 4.35%
LTV – 75%
Lender arrangement fee – 1.5%
Interest only or repayment
Specialist commercial lenders –
Rate – 5.99%
LTV – 65%
Lender arrangement fee – 2.5%
Interest only or repayment
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.
About The Author
This content was produced by our Commercial Lending Director, Gary Hemming. Gary has over 15 years’ experience in financial services and specialises in bridging loans, commercial mortgages, development finance and business loans. He is widely respected in his field and regularly provides expert commentary for specialist trade publications, specialist business press as well as local and national press.
Gary Hemming CeMAP CeFA CeRGI CSP -
Commercial Lending Director
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