Commercial mortgages provide long-term finance for acquiring or refinancing income-producing commercial property. Unlike development finance, which is based on projected future value, commercial mortgage lending is primarily driven by the property's current income — specifically, the rental income coverage ratio relative to debt service costs.
Lenders typically require rental income to cover debt service by at least 125-150%, depending on the interest rate and the property type. Multi-tenanted properties with diversified income streams often achieve better terms than single-tenant assets, as the risk of total income loss is lower. The weighted average unexpired lease term (WAULT) is a key metric that influences both leverage and pricing.
Commercial mortgage terms range from 3 to 25 years, with interest rates available on fixed, variable, or hybrid bases. Longer fixes provide certainty but typically carry a premium. The right term structure depends on your investment strategy — if you plan to refurbish and reposition the asset within 5 years, a shorter fix with lower break costs makes more sense.
The North West is experiencing a sustained development boom driven by major regeneration programmes across Greater Manchester, Liverpool City Region, and Lancashire. Manchester's population growth — the fastest of any UK city outside London — is fuelling demand for new homes, while the city's expanding commercial district is creating mixed-use conversion opportunities at scale.
Indicative Terms
Typical terms available for commercial mortgages in Northwich. Actual rates depend on your project specifics and experience.
Interest Rate
From 5.5% p.a.
Loan to Value
Up to 75% LTV
Typical Term
3-25 years
Arrangement Fee
0.5-1.5% of facility
Rates shown are indicative and subject to individual assessment. Contact us for a bespoke quote.
Representative Deal
Acquisition of a multi-tenanted office building with 6 tenants on lease terms ranging from 2 to 8 years. WAULT of 4.3 years with 85% occupancy at acquisition. A 15-year fixed-rate commercial mortgage was secured at 70% LTV, with the lender excluding the vacant floor from income covenant calculations for the first 12 months to allow for letting.
GDV
£4,200,000
Loan Amount
£2,940,000
LTV
70% LTV
Loan Type
15-Year Fixed Commercial Mortgage
This is a representative example. Actual terms vary based on project specifics.
Common Questions
Submit your deal in minutes. Our team will come back to you with indicative terms within 24 hours.