Commercial Mortgage

Taking out a commercial mortgage is one way of maximising your business finance. Property can be a significant cost for many businesses so it is important to manage that investment wisely.

Features and benefits

  • A commercial mortgage from TSB is an ideal way of purchasing or remortgaging commercial property.
  • Mortgages start from £25,001
  • Choose a loan term of up to 25 years
  • We can lend up to 70% of the value of the property and in some cases we can lend more
  • Base rate linked and fixed rates** are available
  • For a base rate linked mortgage you can apply for flexible capital repayment holidays of up to two years (to be taken in blocks of three months)
  • If you choose a fixed rate**, your repayments will remain the same even if base rate rises or falls
  • If you repay part or all of your fixed rate* mortgage before the end of the agreed term there may be a break cost***
  • There is no break cost*** for base rate linked mortgage
  • An arrangement fee will apply, up to 1.5%**** and dependent on the amount you borrow
  • Security fees are applicable

Any property given as security which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. 
All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your business. 
You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.

More information

Tell us about your plans and needs, and we will then agree the interest rate with you. An arrangement fee, security and valuation charges will apply.

For interest only, the actual amount borrowed doesn't reduce during the life of the mortgage so you need to repay the full capital amount at the end of the mortgage term.
We will require a first legal charge over the property as security. This means if you are re-mortgaging an existing property, any loan secured on it must normally be repaid before completion.

**There is always a possibility that interest rates may go down leaving a fixed rate loan at a higher level compared to a variable rate loan. However, if interest rates rise, a fixed rate loan will remain at the same rate.

***A break cost may be applied to any fixed rate loan over £25,000, on any early or partial/full repayment of the loan. This could be substantial depending on the interest rate at the time.

****An arrangement fee will apply and is related to the amount you choose to borrow. These terms will be discussed with you before you take out the loan. To cover our administration costs for smaller facilities, there will be a minimum scale charge of between £100 and £250 resulting in the overall charge being more than 1.5%

Before you apply

To apply for a business loan from TSB you will need to confirm the following:

  • Check you are eligible

  • You are a sole trader, partner or director

  • You are aged 18 or over

  • You require the account for business use

  • UK-based businesses only

Further information

Finance Application Checklist (PDF)

Financing your Business (PDF)


Have this information to hand

  • How much you would like to borrow
  • The purpose of the finance
  • How many months you would like to make the repayments over

Find out more and apply

Call us
Monday to Friday 8am to
6pm, Saturday 9am to 2pm (excluding UK public holidays).
0345 835 3858