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Commercial Mortgage Calculator
Please select Auto or Manual.

Auto - For 'Auto' the calculator will determine the likely Interest Rate and Lender Arrangement Fee based on the loan amount required and the Loan to Value (LTV).

Manual - For 'Manual' you can enter and adjust the Interest Rate and Lender Arrangement Fee.

Mortgage Details
Mortgage Amount Required - Please enter the mortgage amount that you wish to borrow.
Term Required - Please select how long in years you would like to have the commercial mortgage over.
Property Details
Please select Purchase or Remortgage.

Purchase - Choose this option if you are 'purchasing' a commercial or semi-commercial property.

Remortgage - Choose this option if you want to 're-mortgage' an existing property or properties that you already own.

Purchase Price - Please enter the total purchase price of the property.
Please select Commercial or Semi-Commercial.

Commercial - Please select 'Commercial' if the property is fully commercial without any residential part to it. For example a shop, factory, or office that does not have any living accommodation.

Semi-Commercial - Please select 'Semi-commercial' if the property is made up of commercial and residential. For example a property that is made up of a shop and a flat.

Properties being used as security
Property Value - Please enter the estimated market value of the property.
Please select Commercial or Semi-Commercial.

Commercial - Please select 'Commercial' if the property is fully commercial without any residential part to it. For example a shop, factory, or office that does not have any living accommodation.

Semi-Commercial - Please select 'Semi-commercial' if the property is made up of commercial and residential. For example a property that is made up of a shop and a flat.

Add Property
Rates and Fees
Interest Rate - Set by default at our most common rate, this can be edited if required. Please enter the annual interest rate to be charged on the loan.
%
Lender Facility Fee - Set by default at our most common fee, this can be edited if required. Please enter any arrangement fee that is to be added to the loan. This is calculated as a percentage of the Mortgage Amount Required.
%
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Calculator Instructions

Step 1: First, please select ‘Auto’ or ‘Manual’.

Auto: This is the default setting and we suggest that you use the calculator on this setting as it will determine the annual interest rate and lender facility fee based on the size of the mortgage required, loan to value, type of property being used as security, etc.

Manual: With this setting you can set the annual interest rate and facility fee for yourself.

Step 2: Please enter the mortgage amount that you require.

Step 3: In years, please enter the mortgage term that you require. By default this is set to 20 years which we find is the most common option.

Step 4: Please select ‘Purchase’ if you are looking for a commercial mortgage to purchase a commercial property, or ‘Re-mortgage’ if you are looking to refinance a commercial property (or properties) that you already own.

For Purchase: If you are purchasing a commercial property, please enter the purchase price of the property.

Please tell the calculator if the property is a fully commercial or semi-commercial. A semi-commercial property is a commercial property that also has residential living accommodation included. For example a shop with a flat behind or above.

For Re-mortgage: If you are planning to re-mortgage, please enter the estimated value of each of the properties that you wish to use as security.

Please also select for each property if it is fully commercial or semi-commercial.

If the calculator is set on ‘Auto’ then you can now click the ‘Calculate Button’ for instant results.

If the calculator is set on ‘Manual’ – An additional 2 steps are required.

Step 5: Please enter the interest rate. Our commercial mortgage calculator uses % pa (percent per annum / year) that will be charged on the mortgage facility. The interest rate is set by default at a common option.

Step 6: Most commercial mortgage facilities charge a lender arrangement fee (also known as a facility fee, acceptance fee or booking fee), which is usually a percentage of the mortgage amount being borrowed and added to the facility. If applicable, please enter the arrangement fee (as a percentage), this will then be added to the total mortgage facility.

We have set the default rate at 2% because this is the most common facility fee for commercial mortgages arranged by ourselves.

Final step: Click the ‘Calculate’ button and your results will be displayed instantly.

Explanation of results

Mortgage Amount Required: This is the amount required.

Lender Arrangement Fee: This figure is calculated as a percentage of the mortgage amount required.

Broker Fee: This is set to ‘Nil’ as we don’t charge broker fees.

Gross Mortgage Amount: This figure illustrates the mortgage amount required plus any arrangement fees.

Interest Rate: This displays the interest rate used for calculating the monthly repayments.

Loan to Value (LTV): Commercial mortgages are available up to 75% LTV. The LTV displayed is calculated using the gross mortgage amount as a percentage of the value of the security being provided.

Lender Legal Fees: The lenders use solicitors when putting a commercial mortgage or re-mortgage in place, and the legal fees are passed to the borrower. The amount displayed is intended as a guide only, as amounts will vary between law firms, the number of properties being used as security, the type of property, location, etc.

Mortgage Term: This is the number of years the mortgage is over.

Interest-Only Repayment: This figure shows how much you would need to pay on a monthly basis if you had an interest-only mortgage or loan. This figure will stay the same for any changes to the mortgage term provided the amount borrowed and interest rate remain the same. It will however change if you enter a different mortgage amount or interest rate.

Monthly Repayment: This figure shows the amount you would need to pay on a monthly basis if you had a capital repayment mortgage.

Total Amount Repayable: This figure illustrates the total amount you will actually repay if the commercial mortgage runs the full term.

This assumes that the interest rate remains the same throughout the entire mortgage term and that no additional capital repayments are made, and all monthly payments are paid on time. A shorter mortgage term will reduce the total amount repaid, and a longer term will increase the total amount repaid.

Calculated Results
£0, over Years at 7%
Total Costs
Mortgage Amount Required Mortgage Amount Required - This is the net amount that you wish to borrow. £ 0
Lender Arrangement Fee (2%) Lender Arrangement Fee - This is calculated as a percentage of the Mortgage Amount Required and added to the facility. £ 0
Broker Fee Broker Fee - We do not charge broker fees on Commercial Mortgages. Nil
Gross Mortgage Amount Gross Mortgage Amount - This is the Total amount being borrowed which includes the Mortgage Amount Required and the Lender’s Arrangement Fee. £ 0
Interest Rate Interest Rate - The interest rate shown is an annual rate, so is the amount of interest being charged by the lender per year. 7%
Loan to Value (LTV) Loan to Value (LTV) - LTV is the amount of equity being used by the loan facility. Commercial mortgages are usually available up to 75% LTV. The loan to value is calculated as a percentage of the gross mortgage facility to the value of the security being offered. nan%
Lender Legal Fees (approximate)Lender Legal Fees - The lenders will incur fees when putting a commercial mortgage or re-mortgage in place and these fees are passed onto the borrower. Our calculator provides an approximate guide to how much these fees may be. £ 1,250
Mortgage Term (in years) Mortgage Term - How long the mortgage facility is spread over, in years. years
Interest Only Monthly Payment Interest Only Monthly Payment - This is the monthly payment amount if you opt for an interest only mortgage. £ 0
Monthly Repayment Monthly Repayment - This is the monthly repayment amount if you opt for a repayment mortgage. £ 0
Total Amount Repayable (if loan runs full term) Total Amount Repayable - This is the total amount that you will repay on a repayment mortgage basis assuming that there is no change in interest rates, the facility runs full term and all repayments are made on time. £ 0
Repayment Breakdown £0 Monthly
Term Interest Capital Balance
Month 1£ 0£ 0£ 0
Month 2£ 0£ 0£ 0
Month 3£ 0£ 0£ 0
Month 4£ 0£ 0£ 0
Month 5£ 0£ 0£ 0
Month 6£ 0£ 0£ 0
Month 7£ 0£ 0£ 0
Month 8£ 0£ 0£ 0
Month 9£ 0£ 0£ 0
Month 10£ 0£ 0£ 0
Month 11£ 0£ 0£ 0
Month 12£ 0£ 0£ 0
We have access to all lenders
Commercial Mortgage Calculator updated on 27th February 2024 to reflect the very latest interest rate changes.
Due to the recent changes, the latest interest rates now start from 6.45% per annum (variable) or 6.35% fixed for 5 years. This interest rate is available up to a maximum 65% Loan to Value.

Commercial Mortgage Calculator

To help you work out your budgets and cash flow, or to simply compare available commercial mortgage deals, to see what difference a commercial mortgage may make to your business, we have created this simple commercial mortgage calculator.

Our commercial mortgage calculator will provide figures for both interest only and repayment mortgages. It has been created to provide you with an approximate guide to the costs of a commercial mortgage.

However, as independent brokers we find our customers the facilities that offer them the best possible deal.

Please use our commercial mortgage calculator as often as you like to help you decide what commercial mortgage option would be the best for your business.

Commercial Mortgages Criteria

  • Loan to Value up to 75%
  • Loans £100,000 to £250 million (Larger loans can be considered)
  • Loan terms 3 - 25 years
  • Capital repayment holidays available
  • Interest-only periods available
  • Interest rates from 2% (Over Bank of England Base Rate)
  • Interest Rate Hedging Products available (Including interest caps and swaps for periods of up to 10 years)
  • Loans available for overseas clients (North America, Europe, Australasia, Japan, Hong Kong, Singapore)

Commercial Mortgage Interest Rates and Costs

As independent commercial mortgage brokers we search the whole market to find our clients the best possible deals for the finance that they require.

There are literally hundreds of different commercial mortgage plans available, allowing us to:

  • Provide a wide range of options
  • Provide facilities for a wide range of scenarios

Commercial mortgage rates start from just 7.25% pa - (2% over Bank of England Base Rate)

Commercial Mortgage Interest Rates
Loan Amount Security Type Max LTV Interest Rate Lender Facility Fee
Fixed
£250,000 upwards Commercial 65% 7.79% Fixed for 5 Years 2%
£250,000 upwards Commercial 70% 7.89% Fixed for 5 Years 2%
£250,000 upwards Commercial 75% 7.99% Fixed for 5 Years 2%
£250,000 upwards Semi-Commercial 60% 6.35% Fixed for 5 Years 2%
£250,000 upwards Semi-Commercial 75% 6.89% Fixed for 5 Years 2.5%
£250,000 upwards Semi-Commercial 75% 6.69% Fixed for 5 Years 3.5%
£250,000 upwards Semi-Commercial 75% 6.49% Fixed for 5 Years 4.5%
Variable
£2 million and above Commercial 65% 7.19% Variable 2%
£2 million and above Commercial 75% 7.55% Variable 2%
£2 million and above Semi-Commercial 65% 6.45% Variable 2%
£2 million and above Semi-Commercial 75% 6.69% Variable 2%
1 million and above Commercial 65% 7.19% Variable 2%
1 million and above Commercial 75% 7.85% Variable 2%
1 million and above Semi-Commercial 65% 6.69% Variable 2%
1 million and above Semi-Commercial 75% 6.99% Variable 2%
£250,000 to £999,999 Commercial 60% 6.99% Variable 2%
£250,000 to £999,999 Commercial 75% 8.55% Variable 2%
£250,000 to £999,999 Semi-Commercial 60% 6.49% Variable 2%
£250,000 to £999,999 Semi-Commercial 75% 7.6% Variable 2%

Commercial mortgage interest rates range from 2% over base rate upwards

Interest rates for commercial mortgages don’t tend to be set based on Loan to Value, as they often are with many residential mortgages.

Commercial mortgage interest rates and fees will be based on a consideration of the following factors:

  1. How long the business has been trading - Businesses that have been established longer will be considered less risk. Unless of course it is a business that the lender feels may have a limited future. For example a video library or cigarette vending machine manufacturer (ban on smoking in public places).

    New businesses tend to be considered higher risk because when compared to established businesses a higher proportion of new businesses fail.

  2. How successful a business has been in making a profit - Lenders will look at previous accounts and projections to see if the business is making a steady profit. They like to see growth and a steady profit each year.

    A business that has decreasing profits or is making a loss will obviously be course for concern.
  3. Debt level - Commercial mortgage lenders will look to see the level of debts that a business has.
  4. Credit history of the business - They will look into the credit history of the business, and also the credit history of the company directors and business owners.
  5. Personal Guarantees (PGs) - Whether or not a personal guarantee is available may well affect the interest rate and terms of the loan. If the owners or directors are unwilling to offer a personal guarantee, even a limited one, this can be looked upon unfavourably by a lender.
  6. Mortgage amount required, size of the loan - Larger commercial mortgages command lower interest rates!

    The amount of money being borrowed can affect the interest rate on a commercial mortgage. The larger the loan then generally this may mean a lower interest rate. Small commercial mortgages will usually have a higher interest rate. This is because of the costs of running the mortgage account, a higher interest rate maybe required on a small facility in order to cover the costs involved and for the lender to make a profit.
  7. The Loan to Value - For purchases a deposit of between 25% and 40% will be required. If additional security is available then then this can possibly be used.
  8. Who will be using the security property - The lenders will consider who will be using the commercial property. The property owner running a profitable business from the security property is usually most favourable. The lenders also like investment properties where there is a long lease in place with a good tenant.

Unsecured Business Loans - Provides a cash injection for your business

  • Loans from £25,000 to £1 million
  • Can be used for any business purpose
  • All types of industries considered
  • New start companies also considered

Our Commercial Mortgage Calculator

Our calculator has been created to provide you with an approximate guide to the costs of a commercial mortgage. We work with a lot of lenders who offer different rates, calculate interest in different ways, and have different fee structures.

However, as independent brokers we find our customers the facilities that offer them the best possible deal.

Please use our commercial mortgage calculator as often as you like to help you decide what commercial mortgage option would be the best for your business.

Frequently Asked Commercial Mortgage Questions

What is a commercial mortgage?

Commercial mortgages are used to fund the purchase of commercial property or land which will be used for business purposes. Like a traditional, residential mortgage, the money borrowed will be secured against the asset. Commercial mortgage terms typically range from 3 to 30 years.

What can a commercial re-mortgage be used for?

Usually the most cost effective way to raise additional business funds is through a commercial re-mortgage.

Commercial re-mortgages are available to raise capital for most business purposes including expansion, modernisation, to reorganise finances by consolidating more expensive finance facilities or to provide a working capital cash injection.

What is a semi-commercial mortgage?

Finance to purchase or re-mortgage properties that are used for both residential and commercial purposes can be provided through the use of semi-commercial mortgages.

An example of a semi-commercial property would be a retail shop that has residential accommodation attached.

Can a commercial mortgage be used to repay a bridging loan?

Bridging loans are only intended to be used as a short-term finance facility. Therefore, before taking out a bridging loan it is very important to have an exit strategy in place. A popular exit strategy for bridging loans is to refinance using a commercial mortgage.

A commercial mortgage being used as an exit strategy to repay bridging finance would occur when the completion of a commercial property purchase had to be achieved very quickly, or when the commercial property is unsuitable security for the mortgage provider because it is in a poor state of repair. Following completion of repair and restoration work, the short-term bridging loan will be repaid through refinancing, using a long term commercial mortgage facility.

It is important to realise that considerable financial savings can be made if you are able to skip the initial bridging loan and go straight to the commercial mortgage.

How can I get a commercial mortgage?

You can have a free, no obligation discussion with one of our advisors who will be able to tell you what your options are. If you are interested, we can then provide you with written terms within a couple of hours.

Can I get a commercial mortgage to buy a property in order to start my own business?

This is possible with a higher deposit, usually of around 50% of the purchase price. Since you don’t have any trading history to demonstrate your ability to repay the mortgage, the higher deposit is needed to reduce the risk associated with lending of this nature.

Do you provide interest only commercial mortgages?

Yes, we can arrange interest only commercial mortgages for terms up to 10 years.

Can I still get a Commercial Mortgage if my bank has already declined my application?

We work with specialist lenders who have greater flexibility than the High Street Banks, so we may still be able to assist you. Give us a call for a free, no obligation chat to find out whether we can help you.

What are the monthly payments for commercial mortgages?

The commercial mortgage calculator on this website is there for you to use as much as you want, for both repayment and interest only.

You can also call us to speak to an advisor for a free no obligation quote.

How much of a deposit would I need?

A deposit of 25% is usually the minimum required. If the property is going to be occupied by you, it might be possible to get LTV of 80%

The more money you can invest means you can access better rates, as borrowing with the highest Loan To Value (LTV) means you can only access the highest rates.

Do I have to pay any fees?

There are no upfront application fees to pay with KIS Finance, and these are the fees you would likely need to pay:

  • Lender’s arrangement fee – usually around 2% of the loan amount.
  • Broker fee – we do not charge broker fees for any commercial mortgages arranged by ourselves.
  • Valuation fee – the cost will depend on the size, type and value of the property.
  • Legal fees – vary from case to case – please use our commercial mortgage calculator as a guide to what legal fees you may have to pay a lender.

Our Commercial Mortgage Specialists

Emma Ross
Emma Ross
Commercial Mortgages & Business Loans
Jack Sharp
Jack Sharp
Mortgage & Commercial Specialist
Neil Andrews
Neil Andrews
Commercial Team Leader
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