How to get a business mortgage, from first call to keys.
A business mortgage (an owner occupier commercial mortgage) funds the premises a company trades from, with a 25% to 40% deposit, a loan sized on the business's profit at 1.25 to 1.5 times cover, from about 6% a year in 2026, over 5 to 25 years, and takes six to twelve weeks from application to completion. Yes, a business can get a mortgage; the lender underwrites the business's accounts rather than a salary. Here is the process, in order.
By Dominic Whitecross, Co-Founder, HyLend. Last reviewed October 2026.
The seven steps
| Step | What happens | When | |
|---|---|---|---|
| 1 | Size the loan | Two years of accounts and management figures; we calculate what profit supports and what the building allows | Day 1 |
| 2 | Indicative terms | Whole of market test; lender backed terms within 24 hours; choose the structure | Day 1 to 2 |
| 3 | Application | Accounts, bank statements, business plan if trading history is short, ID and company documents | Week 1 |
| 4 | Valuation | Lender instructs a commercial valuer; bricks and mortar, or going concern for trading assets | Weeks 2 to 4 |
| 5 | Credit approval and offer | Underwriting on accounts, valuation and the directors; formal offer issued | Weeks 4 to 6 |
| 6 | Legals | Lender's and your solicitors; title, searches, leases if any, guarantees | Weeks 5 to 10 |
| 7 | Completion | Funds released against the charge; keys | Weeks 6 to 12 |
What lenders require
Trading history. Usually two years of filed accounts; some lenders accept one year with strong management information or a track record in the same trade. Start ups are case by case and usually need a larger deposit or additional security.
Affordability. Adjusted EBITDA (profit before interest, tax, depreciation, plus the rent you will stop paying, less directors' drawings) must cover the mortgage payment 1.25 to 1.5 times at a stressed rate. On £120,000 of adjusted EBITDA at 1.3x cover and a 7% stress rate on a 20 year repayment, the maximum loan is about £990,000. The calculation in full →
Deposit. 25% for standard premises with strong accounts; 30% to 40% for specialist assets such as pubs, hotels, care homes and anything valued as a going concern. Deposit by property type →
The directors. Personal guarantees are standard; lenders look at personal credit, experience in the trade and net worth. Through a limited company or SPV; we arrange non regulated commercial lending only.
Documents to have ready
Two years of filed accounts and the latest management accounts; six months of business bank statements; a statement of assets and liabilities for each director; the sale particulars and any lease; company incorporation documents; and, where the business is young or changing, a short plan showing how the premises change the numbers. A complete pack on day one is the difference between six weeks and twelve. The lender pack checklist, free →
What goes wrong, and the alternatives
Most declines are affordability on the filed accounts, where the business is profitable but the accounts were prepared to minimise tax. Lenders can add back directors' remuneration and one off costs, but only with evidence. Where the timeline is the problem, a purchase that must complete in weeks can be bridged and refinanced onto the business mortgage once the accounts and valuation are in. Where the premises come with a sitting business, a going concern valuation and a specialist lender apply. Bridging to a term loan →
How we place it
We prepare the affordability case the way the lender's credit team reads it, add backs evidenced, before anything is submitted, and test it across the lenders whose appetite matches your sector. Most business mortgage declines are a presentation problem, not a business problem.
Send the basics
Asset, amount, timeline and exit. Lender backed indicative terms within 24 hours, tested across the whole market rather than a single panel.
Send the basics → or call 07310 008347, or WhatsApp +44 7741 434395.
Business mortgage: FAQs
Can a limited company get a mortgage?
Yes. A business mortgage is lent to the company, secured on the premises, with personal guarantees from the directors, and sized on the company's profit rather than anyone's salary.
How much deposit does a business mortgage need?
25% of the purchase price for standard premises with two years of sound accounts; 30% to 40% for specialist or going concern assets, start ups and weaker accounts.
How long does a business mortgage take?
Six to twelve weeks from application to completion. The valuation and the legal work set the pace; a complete document pack on day one is what gets you to six.
What rate will I pay on a business mortgage?
From about 6% a year in 2026 for standard premises at moderate leverage, fixed or variable, with an arrangement fee of 1% to 2%. Specialist assets and higher leverage price from 7% to 9%.
Can a new business get a mortgage on its premises?
Sometimes, with a larger deposit, additional security or a director with a track record in the trade. More often the route is a bridge or a lease with an option to buy until there are accounts to lend against.