✅ Which type of commercial property finance do I need?
Run the decision tree. Lendable condition, long-term hold? → commercial mortgage (rates broadly 5–9%, deposits 25–40%). Need speed, or the property isn’t yet mortgageable? → bridging. Building, converting or doing major structural work? → development finance. Already own it and need cash out? → refinance or capital raise. Renovation has its own sub-tree: light works via commercial bridging at 0.75–1.0% monthly, works changing lettable area or classification via heavy refurb bridging at 0.85–1.2%+. Category leaders: Shawbrook, Together and UTB for breadth, LendInvest for speed, Paragon for portfolios, InterBay for semi-commercial — and expats and foreign nationals are a genuine, growing part of the market. Money Pilot runs the tree across 200+ lenders at zero broker fees — FCA regulated (FRN: 968705).
Here’s a genuinely useful way to think about this before you approach anyone: you’re not choosing one lender so much as one lender per job. Commercial property finance isn’t a single product, it’s an umbrella covering several genuinely different tools, and the bank that leads on a ground-up development scheme is rarely the same one that prices the sharpest standard commercial mortgage. Let’s map out which type actually fits your situation.
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What does “commercial property finance” actually cover?
The full umbrella spans:
- Commercial mortgages, for buying or refinancing business premises or investment property already in a lendable condition
- Bridging finance, for fast purchases, or properties needing light work before they’re mortgageable
- Development finance, for ground-up builds, major conversions, and heavy refurbishment
- Refinancing and capital raising, releasing equity from property you already own
Each solves a genuinely different problem, and picking the wrong one for your situation doesn’t just cost more, it can mean applying to a lender who was never going to say yes.
How do you actually decide which one you need?
A few questions cut through most of the confusion:
Is the property already in a lendable condition, and are you planning to hold it long term? → Commercial mortgage.
Do you need to move fast, an auction deadline, a chain, or is the property not yet mortgageable? → Bridging finance.
Are you building from scratch, converting, or carrying out major structural work? → Development finance.
Do you already own the property and need to release cash from it? → Refinance or capital raise, structured as either a remortgage or a bridging facility depending on your timeline.
What if you need to renovate a commercial property specifically?
This deserves its own decision tree, since “renovation finance” isn’t one single product either:
Light works (cosmetic upgrades, minor industrial improvements): commercial bridging, typically 0.75-1.0% per month, up to 75% of the property’s current value
Works that substantially affect lettable floor area or the building’s classification: heavy refurbishment bridging, typically 0.85-1.25% per month, up to 70% of the projected value once works complete
Modest works on a property that’s already income-producing: sometimes still fundable via a standard commercial mortgage, offering lower long-term rates, though requiring a longer application process than bridging
Which lenders actually lead in each category?
Different names dominate different parts of the market:
- Shawbrook, Together, and United Trust Bank cover the widest span across commercial mortgages, bridging, and complex cases
- LendInvest is frequently cited for speed specifically
- Paragon leads on buy-to-let and portfolio-style commercial investment
- InterBay has particular strength in commercial investment lending and semi commercial or mixed-use property
Your property type and your priority, speed, rate, or flexibility around an unusual asset, genuinely does determine which name ends up at the top of your shortlist, there’s no single universal leader across every category.
What rate and deposit should you expect, whichever route applies?
For a standard commercial mortgage currently: rates broadly 5-9%, deposit typically 25- 40% (with better terms available around 35-40%, borrowing at 60-65% LTV), and a DSCR requirement of 1.25-1.5x at a stressed rate. Application timelines commonly run 4-12 weeks, depending on complexity and how quickly valuers and solicitors move.
Can foreign nationals and expats access UK commercial property finance?
Yes, this is a genuine and growing part of the market, though expect more documentation and typically larger deposits than a UK-resident applicant would need. Working with a broker experienced specifically in this area matters more here than almost anywhere else in the market, since criteria and required paperwork vary considerably by lender.
What’s changing in the market recently?
Lenders are digging deeper into affordability, borrower background, and the long-term viability of the specific property, rather than assessing more superficially. Office, retail, and industrial demand is shifting at different rates across the UK, which affects both valuations and lender appetite depending on the specific sector your property sits in.
The bottom line
Commercial property finance spans several genuinely different products, and the right one depends entirely on the property’s current condition, your timeline, and what you’re actually trying to achieve, buy, renovate, build, or release equity. Matching your specific situation to the right product first, then to the lender who genuinely leads in that category, rather than approaching the market with one product in mind regardless of fit, is what actually determines whether the process runs smoothly or stalls unnecessarily.
