Cost guide
How much does a Commercial mortgage cost?
Looking to secure a commercial mortgage for your office, shop, or warehouse? It's a big step, and understanding the costs involved is key to making the best decision. We're here to help you get a clear picture without any fuss. While getting a commercial mortgage can feel complex, we want to reassure you. The cost primarily covers the specialist broker's fee for finding and arranging the best deal for your business. You'll receive expert guidance and access to a wide range of lenders.
Typical price
£1,000 to £5,000
What changes the price
Loan amount and complexity
Larger or more unusual loans might involve more work for the broker, affecting the fee.
Broker's fee structure
Some brokers charge a flat fee, while others take a percentage of the loan amount.
Your business financials
A very strong business profile might lead to lower broker fees as the deal is easier to place.
Type of property
Standard commercial properties might incur lower fees than very specialist or complex buildings.
Number of lenders approached
If the broker needs to approach many lenders to find the right fit, their work increases.
Urgency of application
Fast-tracked applications requiring quick turnarounds may sometimes have a premium attached.
Prices by region
| Region | Low | Typical | High |
|---|---|---|---|
| London | £1,500 | £3,500 | £5,000 |
| South East | £1,200 | £3,000 | £4,500 |
| South West | £1,000 | £2,500 | £4,000 |
| East of England | £1,100 | £2,700 | £4,200 |
| Midlands | £1,000 | £2,400 | £3,800 |
| North West | £1,000 | £2,300 | £3,700 |
| North East and Yorkshire | £900 | £2,200 | £3,600 |
| Scotland and Wales | £900 | £2,100 | £3,500 |
Questions people ask
What does a commercial mortgage broker actually do?
A specialist broker acts as your guide, searching the market to find the best commercial mortgage deals for your business. They help prepare your application, negotiate with lenders, and manage the process from start to finish. This saves you time and effort while potentially securing better terms.
Are there other costs besides the broker's fee?
Yes, beyond the broker's fee, you might encounter other costs like valuation fees, legal fees, and lender arrangement fees. Your broker will help you understand all these potential charges upfront. Always ask for a clear breakdown of all expenses.
Can I get a commercial mortgage without a broker?
While it is possible to approach lenders directly, it can be quite challenging and time consuming. A specialist broker has established relationships and expertise to navigate the complex commercial lending market. They often access deals not available to the public.
How can I keep commercial mortgage costs down?
Having a strong business plan and clear financials will make your application more appealing to lenders. Shopping around for quotes from different brokers can also help you compare their fees and services. Good preparation is key to efficiency.
Is the broker's fee refundable if my application is declined?
Broker fee policies vary, so it's essential to clarify this before you commit. Some brokers charge an upfront fee that may not be refundable, while others only charge upon successful completion. Always get written confirmation of their terms and conditions.
What information will I need to provide for a commercial mortgage?
You'll typically need to provide your business's financial statements, bank statements, and a detailed business plan. Information about the property you wish to purchase or remortgage is also essential. Your broker will guide you through all the necessary documentation.