Commercial mortgage rates depend on the property type, loan-to-value ratio, business strength and whether the property is owner-occupied or for investment. This guide breaks down what to expect in 2025.
Current Rate Ranges
Commercial mortgage rates typically range from 5.5% to 9% depending on the risk profile. Owner-occupied rates tend to be lower than investment property rates. Specialist properties like hotels and care homes may attract higher rates.
Key Lending Criteria
- • Property type — offices and retail attract different rates to industrial or specialist uses.
- • LTV — most commercial lenders cap at 60–75% LTV.
- • Business strength — lenders assess trading performance and serviceability.
- • Lease terms — investment properties need strong tenant covenants.