Commercial mortgage interest rates are determined based on a range of factors that help lenders assess the risk of the loan. These include the total loan amount, where larger loans are often considered riskier and therefore attract higher interest rates, and the loan-to-value (LTV) ratio — the more you’re borrowing compared to the value of the property, the higher the rate might be. Lenders also evaluate your business’s financial strength, your personal credit history, and, in cases of commercial property investment, the quality of the lease and tenant. Each lender uses its own pricing model, so rates can vary across the market. At Mortgage-teK, we help you compare rates and find the best commercial mortgage for your circumstances.

A fixed commercial mortgage rate means your interest rate will remain the same for a set period — this could be anywhere from two years to the full term of the mortgage. It offers stability and helps with budgeting, especially if you’re concerned about future rate increases. A variable commercial mortgage rate, on the other hand, can go up or down depending on movements in financial benchmarks such as the Bank of England Base Rate or LIBOR. While variable rates may start lower, they carry more risk as your repayments could rise. Mortgage-teK can help you decide whether a fixed or variable rate better suits your business strategy.

Whether to choose a fixed or variable commercial mortgage rate depends on your goals and risk appetite. A fixed rate provides peace of mind by keeping monthly payments consistent, which is useful for long-term planning and cash flow management. If market stability is important to you, a fixed rate might be ideal. However, if you’re comfortable with potential fluctuations and want to benefit from lower rates when the market dips, a variable rate could offer savings. At Mortgage-teK, we assess your situation and help you make the best decision based on market trends and your business objectives.

Commercial mortgage rates in the UK can vary significantly depending on your specific needs, but they typically range between 6% and 12%. Factors such as the loan amount, the type of property, whether it’s for investment or owner-occupation, and your overall financial profile all influence the rate. For example, investment properties are usually considered higher risk and may attract higher rates. Because rates can change frequently, Mortgage-teK provides real-time comparisons and advice to help you access the most competitive commercial mortgage rates available.

A commercial mortgage is ideal if you’re purchasing a property for business purposes or investing in commercial real estate. You might need one if you’re a business owner looking to buy premises for your operations, a commercial landlord acquiring property to lease to another business, or a residential investor purchasing a multi-unit block for rental income. If you’re refinancing a portfolio or seeking better terms across multiple properties, a commercial mortgage may also be suitable. Mortgage-teK helps a wide range of clients secure commercial mortgage solutions that match their investment or operational goals.

A commercial mortgage can be used to finance various types of property, including offices, retail shops, industrial units, warehouses, care homes, doctors’ surgeries, dental practices, pharmacies, veterinary clinics, guesthouses, hotels, blocks of flats, agricultural land, and funeral parlours. Whether you’re buying for business use or investment, Mortgage-teK works with specialist lenders who understand the unique risks and requirements associated with each property type.

Choosing the right commercial mortgage depends on several factors — how you intend to use the property, the deposit available, the term you prefer, and the financial health of your business. You’ll also need to consider the mortgage structure, repayment options, and interest rates. It’s important not just to look at introductory offers but to compare total costs, flexibility, and risk. At Mortgage-teK, our advisers review your situation in detail and match you with tailored commercial mortgage products from a wide panel of UK lenders.