What is a commercial mortgage?
A plain-English guide to long-term lending on business and investment property: what a commercial mortgage is, the two main types, and how lenders judge one.
Updated July 2026 · 6 min read · By Housn Capital
What a commercial mortgage is
A commercial mortgage is a long-term loan secured against property used for business or investment — a shop, an office, a warehouse, a unit, or a block let to tenants. In shape it is like a residential mortgage: you borrow against the property and repay over a number of years. What differs is what the lender looks at, because a commercial property earns its keep either by housing a business or by producing rent.
The two main types
Owner-occupier
For premises your own business trades from. The lender looks closely at the trading business and its ability to afford the repayments.
Investment
For property you let to tenants. The lender focuses on the rental income and how reliably it covers the loan.
The distinction matters because it changes how a lender assesses the deal — whether they are really lending against your business, or against a tenant's rent.
What lenders look at
The property
What it is, its condition, and how easily it could be re-let or sold — its value underpins the loan and the .
The income
For an owner-occupier, the trading business's accounts. For an investment, the rent and the strength of the tenants.
The borrower
Your experience, your track record, and often the structure you borrow through, such as a limited company.
The term
Commercial mortgages usually run over a number of years, with the repayments set to be affordable across that time.
Where Housn fits
Commercial lending is less standardised than residential, so the right lender for one business is wrong for another. Housn Capital introduces UK business and investment borrowers to a specialist commercial finance broker who can match the deal to a lender that fits. Tell us about the property to get matched.
Frequently asked questions
A long-term loan secured against business or investment property, repaid over a number of years. Lenders judge it on the property, the business or rental income, and the borrower.
Next step
Thinking about commercial for a project?
Tell us a little about your deal and we’ll introduce you to a specialist broker who can talk through the options.
Housn Capital Limited. Not FCA regulated. B2B non-regulated lending only. Company No. 16418877. General information, not financial advice.