Commercial Mortgage FAQ's

Commercial mortgages can feel complex, particularly if you’re navigating them for the first time or dealing with a non-standard property.

Below are answers to some of the most common questions we’re asked about commercial mortgages in North London — covering borrower types, property structures, timescales and funding options.

If your situation isn’t covered, or you’d like to talk through a specific scenario, a short conversation can often provide clarity early on.

Can a sole trader get a commercial mortgage?

Yes, it’s possible for a sole trader to obtain a commercial mortgage. Lenders will typically assess the strength of the business, trading history, income and the property itself. In some cases, affordability may be assessed using personal income rather than company accounts. Each lender applies different criteria, so the structure of the application matters.

Can I get a commercial mortgage through a limited company or SPV?

Yes. Many commercial mortgages are arranged through limited companies or special purpose vehicles (SPVs), particularly for investment property.

Lenders will usually look at the company structure, director experience, and the underlying property and rental income. Personal guarantees are often required, especially for smaller or newly formed companies.

Do commercial mortgages require personal guarantees?

In many cases, yes — particularly where borrowing is through a limited company or Special Purpose Vehicle (SPV). A personal guarantee provides lenders with additional security and is common in commercial lending. The requirement and extent of any guarantee will depend on factors such as loan size, property type, borrower experience and overall risk.

Can I get a commercial mortgage on a mixed-use property?

Yes. Mixed-use properties — such as shops with flats above — are commonly financed with commercial mortgages. Lenders will typically assess the commercial and residential elements together, taking into account how the property is used, the proportion of residential space, and the income generated.

What counts as semi-commercial property?

Semi-commercial property usually refers to buildings that combine both commercial and residential elements. This might include a retail unit with residential accommodation above, or a property where part is owner-occupied and part is let. Lender appetite varies, so the way the property is structured and used is important.

How long does a commercial mortgage take?

Timescales vary depending on the complexity of the case, the property type, and how quickly information is available. As a general guide, straightforward commercial mortgage applications may complete within 8–12 weeks, while more complex cases — such as mixed-use or refurbishment projects — can take longer.

What’s the difference between a commercial mortgage and bridging finance?

A commercial mortgage is typically a longer-term funding solution used to purchase or refinance property. Bridging finance is short-term funding, often used where a property requires work, has planning considerations, or needs to be refinanced quickly. Bridging finance is usually more flexible but comes with higher costs and shorter terms.

Do I need business accounts to get a commercial mortgage?

Most lenders prefer to see business accounts, usually covering the last two to three years. However, newer businesses may still be considered if there are strong forecasts, relevant experience, or additional supporting information. Requirements vary depending on the lender, borrower structure and property type.