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Commercial Mortgage Calculator

At UK Property Finance we support commercial property owners and investors with an extensive range of brokerage services. Our exclusive commercial mortgage calculator makes it quick and easy to consider the affordability and suitability of various different types of commercial loans.

Commercial Mortgage Interest Rates and Costs

We work with an extensive network of specialist lenders to help commercial clients access unbeatable deals. Whatever your requirements and current financial position, we will do whatever it takes to pair you with the perfect lender.

Example of commercial mortgage rates and costs

Interest Rate For Loans Max LTV Lender Facility Fee Loan Type
2.75% £2 million + 75% to 80% 1.5% Repayment Only
2.85% £1 million + 70% 1.5% Repayment Only
3.0% £500,000 + 75% 1.5% Repayment Only
3.5% £250,000 + 75% 1.5% Repayment Only
4.39% (3 Year Fixed) £250,000 + 75% 1.5% Repayment or Interest Only
4.49% (5 Year Fixed) £250,000 + 75% 1.5% Repayment or Interest Only
4.29% (Max 10 Years) £250,000 + 75% 1.5% Interest Only

Please note that the rates quoted above represent guidelines only.  Commercial mortgage costs are calculated on the basis of each individual client’s requirements and financial circumstances at the time of their application.

Factors That Influence Commercial Mortgage Interest Rates

Commercial mortgage interest rates are calculated on a case by case basis with a multitude of factors being brought into consideration. The most important are as follows:

  • Commercial borrowers and businesses that have been established for some time are considered significantly safer than those that have only recently gone into business.
  • Lenders may also take into account how profitable and successful your business has been, particularly over the months and years running up to your mortgage application.
  • Your current debts and general outgoings will be taken into account when applying for a commercial mortgage. The fewer debts and liabilities you have, the more likely you are to qualify for a competitive deal.
  • Your personal credit history and that of your business as a whole may influence your access to a loan. Imperfect credit will not necessarily count you out of the running for a competitive deal.
  • Larger commercial mortgage loans will also have a positive impact on the APR you can expect. As a general rule of thumb, shorter-term or bridging loans attract higher annual interest rates.
  • You may find it easier to qualify for a competitive commercial mortgage if you are able to offer a larger deposit. The LTV of the loan you apply for will have an impact on monthly payments.

How to Use Our Commercial Mortgage Calculator

Our commercial mortgage calculator is designed to make it as quick and easy as possible to gain a good indication of the options available. Simply follow the six steps below to establish affordability rates of your ideal commercial mortgage:

  • Step 1.  Choose the appropriate option with regard to whether you intend to ‘Purchase’ a commercial property or ‘Remortgage’ an existing commercial property.
  • Step 2.  If you chose the ‘purchase’ option, you will then need to enter the purchase price of the property. If you are remortgaging then enter the values of the properties you intend to use as security.
  • Step 3.  Provide an accurate indication of how much you intend to borrow with your commercial mortgage.
  • Step 4. Enter the approximate APR for your mortgage from the table above.
  • Step 5. Enter the approx. lender arrangement fee.  Most lenders charge a set fee of 1.5% while others do not charge any arrangement fees whatsoever.  Use the above table as a guide.
  • Step 6.  Enter your preferred repayment period which is set to 20 years by default with our commercial mortgage calculator.

Then simply hit the ‘Calculate’ button and you will receive the results in an instant. Experiment with different options (different amounts, repayment periods etc.) to help you find your ideal commercial mortgage in seconds.

Assessing the Results

After entering your details and pressing the ‘Calculate’ button, you will be presented with the following information:

Monthly Repayment: This indicates approximately how much you would be expected to pay on your commercial mortgage each month if repaying the capital (the original loan amount borrowed) and the interest.  With this method, provided all payments have been made in full and on time, the loan balance will be zero at the end of the term.

Interest-Only Repayment: If you choose to go with an interest-only commercial mortgage, this figure will indicate your approximate monthly repayments.  Provided all payments have been made in full and on time, the full balance will be remaining at the end of the term.

Arrangement Fee: The arrangement fee will be calculated in accordance with the approximate percentage amount entered in the corresponding field.

Total Mortgage Amount: This will be the sum total of the commercial mortgage amount you intend to apply for and the arrangement fee.

Total Amount Repayable: The figure displayed in this field indicates the total amount that will be repaid on the loan if the mortgage runs for its full term (i.e. the full repayment period).

Our commercial mortgage calculator has been designed to provide an approximate indication of the associated costs of the commercial mortgage you require. There are many additional factors that must be brought into consideration which may have an impact on your eligibility and the overall costs of your loan.

Frequently Asked Questions

Will I qualify for a commercial mortgage?

Your eligibility for a commercial mortgage will be assessed on the basis of multiple factors. Examples of which include your current financial status, the amount you wish to borrow, your intentions for the money, the size of the deposit you are able to offer and your recent credit history.

How much will I have to repay each month?

Use our exclusive commercial mortgage calculator for an approximate overview of your monthly repayment obligations and the overall costs of your commercial mortgage or please contact UK Property Finance, anytime.

What deposit is needed on a commercial mortgage?

It depends entirely on the type of commercial mortgage and the lender you work with. As a rule of thumb, you will usually be asked to offer a deposit of at least 20% to 25%. It may be possible to secure a commercial mortgage with a smaller deposit but larger deposits typically pave the way for more competitive borrowing costs.

Can I qualify for a commercial mortgage with bad credit?

It is perfectly possible to qualify for a commercial mortgage with bad credit, just as long as you can demonstrate the strength of your financial position. If you have any questions or concerns regarding your credit status, contact a member of the team at UK Property Finance, anytime.

What if my previous commercial mortgage application was denied?

This isn’t necessarily an issue. Even if you have been declined on one or more occasions, there is a good chance we can find your ideal commercial mortgage from a panel of our specialist lenders. Call UK Property Finance anytime to arrange your obligation-free initial consultation with a member of the team.

Last Updated: Dec 6, 2019 @ 12:16 pm
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