What Is a Commercial Mortgage?
A commercial mortgage is a term people may use when exploring finance connected with commercial or mixed-use property. Businesses, investors and property owners may explore it for purchasing, refinancing or using commercial property, but terms and availability vary.
This page provides general information, not a lending decision, individual advice, a recommendation or a guarantee that finance will be available. Funding Freddie is not a lender and supports structured property-finance assessments for requirements of £100,000 or more.
What does a commercial mortgage mean?
A commercial mortgage is finance that people may explore in connection with commercial or mixed-use property, including property used by a business, held as an investment or refinanced.
Commercial property may include business premises, investment property, mixed-use property or other property connected with business activity. The property, its purpose, the ownership structure, income information where relevant and the funding requirement can all provide important context.
The type of finance considered, and whether anything may be available, depends on the individual requirement and provider criteria.
This page provides general information only, not individual advice or a product recommendation. It does not name, compare or recommend a specific finance product.
Common Situations People May Explore
People may explore commercial mortgages when they have a requirement connected to commercial or mixed-use property. These are general examples only.
Buying a property to occupy
People may explore commercial mortgages when buying a property for a business to occupy.
Refinancing existing commercial-property finance
People may explore commercial mortgages when refinancing an existing commercial-property finance arrangement.
Acquiring commercial investment property
People may explore commercial mortgages when acquiring commercial property as an investment.
Considering mixed-use or semi-commercial property
People may explore commercial mortgages when considering mixed-use or semi-commercial property.
Supporting business expansion
People may explore commercial mortgages when business expansion involves commercial premises.
Reviewing property arrangements
People may explore commercial mortgages when reviewing property ownership or funding arrangements.
These are general examples only. Whether any finance route may be available depends on your individual circumstances, the stated requirement and current specialist-provider appetite.
What Information May Be Helpful to Prepare
The following information may be helpful to prepare before starting a Property Funding Assessment.
Property type, location and intended use
The property type, location and its intended use. This may be helpful to prepare in advance.
Purpose of the funding
Whether the requirement is an acquisition, refinancing or an investment purchase. This may provide context for the requirement.
Approximate value or purchase price
An approximate property value or purchase price, where relevant. A specialist may ask for this where relevant.
Approximate funding requirement
An approximate figure for the amount you are seeking. Funding Freddie supports requirements of £100,000 or more.
Ownership or borrowing structure
How the property would be owned or the borrowing structured. A specialist may ask for this detail.
Trading, rental or lease information
Business trading information, rental income or lease information, where relevant. A specialist may ask for this where relevant.
Existing finance arrangements
Any existing property finance arrangements, where relevant. This may be helpful to prepare before starting an assessment.
Intended timescale
The intended timescale for the funding, where known. This may provide context for the requirement.
Relevant decision-maker
The relevant business or property decision-maker available to discuss the requirement.
This is general preparation guidance only, not eligibility criteria or underwriting requirements. You will not be asked to submit sensitive data on this page.
How a Property Funding Assessment Works
A structured assessment process helps you explore your property-finance requirement before any introduction.
Complete a Funding Assessment
Assessment review
Informed introduction
Specialist assessment
Completing an assessment does not guarantee funding, approval, an offer, an introduction, a product, a rate, a term, a timescale, an application, completion, commission or any outcome. Funding decisions remain with the selected provider and are subject to provider assessment and criteria.
Important Points to Understand
Please read these points before starting a Property Funding Assessment.
Funding Freddie is not a lender
Funding Freddie does not make lending decisions or provide finance directly.
Funding is subject to provider criteria
Any funding remains subject to the selected provider's criteria, underwriting and terms.
General information only
This guide is general information and is not a complete eligibility or underwriting checklist.
No guaranteed outcome
Completing an assessment does not guarantee funding, approval, an offer, an introduction, a product, a rate, a term, a timescale, an application, completion, commission or any outcome.
No individual financial advice
This guide does not provide individual financial advice or product recommendations.
Related Pages
An overview of commercial mortgages and the £100,000+ assessment threshold.
The Property Finance hub, covering the property-finance categories Funding Freddie supports.
Short-term property finance used in certain property situations, before longer-term finance is arranged.
Finance that may be explored in connection with property development or refurbishment projects.
A practical guide to the information that may be helpful before you start a Property Funding Assessment.
How the structured Funding Assessment and informed introduction process works.
Begin a structured Property Funding Assessment for a £100,000+ requirement.
Commercial Mortgage FAQs
Clear answers to common questions about commercial mortgages and the Funding Freddie assessment process.
Explore a Property Funding Assessment
If you have a commercial-property requirement of £100,000 or more, you may begin a structured Property Funding Assessment.
No obligation to proceed. Completing an assessment does not guarantee funding, approval, an offer, an introduction, a product, a rate, a term, a timescale, an application, completion, commission or any outcome.