Commercial Mortgages in Leicester
Business property finance for owner-occupiers, landlords, buy-to-let borrowers and property investors, with careful, market-aware advice from Bina and Tajal.
COMMERCIAL MORTGAGES IN LEICESTER - OVERVIEW
What a commercial mortgage is
A commercial mortgage is a loan secured against a property used for business purposes, or held as an investment. It's a broad category that covers everything from a small owner-occupied unit to portfolio landlord borrowing and mixed-use premises with shops on the ground floor and flats above.
Types of commercial property
- Retail units, shops and salons
- Offices and consulting rooms
- Industrial units and warehouses
- Semi-commercial and mixed-use property
- Rental residential property (through buy-to-let and portfolio lending)
- Specialist property, such as HMOs
Owner-occupied commercial mortgages
If your business is trading from rented premises, owning the property outright can offer long-term cost stability, an asset on the balance sheet and greater control. Lenders will look at business trading history, deposit, affordability and the property itself, and typically want to see the loan serviced from business income.
Landlord borrowing
Landlord mortgages support portfolio growth and refinancing. Whether you're purchasing a single additional property or restructuring finance across several, lender criteria vary widely. Our role is to identify lenders whose criteria fit your specific portfolio and long-term plans.
Buy-to-let borrowing
Buy-to-let mortgages fund the purchase or refinance of residential property let to tenants. Interest-only structures are common, deposits are typically larger than residential, and lenders focus heavily on expected rental income when assessing affordability.
Property investor finance
For active investors, the right finance structure can make a material difference to returns. Options span standard buy-to-let, limited company buy-to-let, HMO finance, portfolio mortgages, semi-commercial and, in some cases, bridging. We advise on the fit between the project and the lending.
Deposit and affordability considerations
Commercial deposits typically start around 25% and can be higher depending on the property, sector and business. Affordability may be assessed on trading accounts, rental income, or a combination. Lenders will also consider the strength of the covenant (tenant) on let commercial property.
Business trading history
Lenders usually prefer at least two full years of trading accounts, though there are options for newer businesses with strong projections, experienced directors and adequate deposit. Presentation matters, a well-organised set of accounts, projections and business narrative makes a real difference to lender appetite.
Rental income and projected income
For investment property, rental income drives the affordability assessment. Lenders apply their own stress tests, and different lenders will reach quite different conclusions on the same case. That is precisely where working with an experienced adviser helps.
Personal guarantees
Commercial lending frequently involves personal guarantees from company directors. These are serious commitments and should not be signed without independent legal advice. We will always explain the implications carefully and encourage you to seek appropriate legal input.
Big-firm experience. Boutique-level service.
With extensive experience across leading corporate and PLC mortgage environments, Bina and Tajal bring expert knowledge across everything from first-time buyers to complex, high-net-worth and property investment lending.
At Harmony House Mortgages, that expertise is combined with the personal attention and accessibility of a boutique mortgage firm.
Bina brings extensive experience from the corporate mortgage sector, combining specialist knowledge with a highly personal approach to advice.
She works with clients across the mortgage spectrum, from first-time buyers and home movers to experienced landlords, property investors and high-net-worth individuals with more complex borrowing requirements.
Her strength lies in understanding the bigger picture, navigating complex cases and finding the right lending solution while making the process feel straightforward from start to finish.
When she's not helping clients, Bina is a busy mum of three and knows just how important it is to have someone you can trust when making life's bigger decisions.
Tajal brings extensive experience from the corporate mortgage world, with a particular strength in navigating complex cases and finding solutions where the straightforward route isn't always the right one.
Her calm, considered approach and attention to detail give clients confidence throughout the process, whether they're remortgaging, self-employed, investing in property or have more specialist borrowing requirements.
Away from mortgages, Tajal is a busy mum of three and enjoys balancing family life with a career she genuinely loves.
Arrange a conversation with an adviser
A relaxed, no-obligation conversation with Bina or Tajal to talk through your options.
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Frequently Asked Questions
What is a commercial mortgage?
A commercial mortgage is a loan secured against a property used for business purposes, such as offices, retail units, warehouses, industrial premises or mixed-use buildings. It can also cover owner-occupied premises or property held as an investment. Terms, criteria and pricing usually differ considerably from residential mortgages and generally reflect the business behind the borrowing.
How much deposit is needed for a commercial mortgage?
Most commercial lenders look for a deposit of around 25 to 40% of the property value, though this varies by lender, property type, rental income and the strength of the business. Higher deposits usually unlock better rates and more flexible terms. We will discuss what is realistic for your situation and target lenders accordingly.
Are commercial mortgages regulated by the FCA?
Most commercial mortgages are not regulated by the Financial Conduct Authority, and neither are many buy-to-let mortgages. This means the consumer protections that apply to residential mortgages may not apply. We will always explain this clearly at the start of the process so you understand exactly what protections are and are not in place.
Can I get a commercial mortgage as a new business?
Possibly. Lenders typically prefer some trading history, but a number of them will consider newer businesses with strong projections, experienced directors, a solid deposit or additional security. Personal guarantees are often required. We can look carefully at your situation and identify lenders whose appetite genuinely fits, rather than making speculative applications that could affect your credit profile.
What is a personal guarantee?
A personal guarantee is a written commitment from a company director or business owner to be personally liable for the loan if the business cannot repay. It is a common requirement on commercial and limited company borrowing. We will explain the implications carefully, and we would always suggest independent legal advice before signing one.
Do you advise on semi-commercial and mixed-use property?
Yes. Mixed-use property, such as a shop with a flat above, or premises with both commercial and residential elements, often needs specialist lending. Fewer lenders operate in this space, and criteria vary widely. We work with clients across Leicester on these types of transactions and can identify lenders whose criteria suit the specific property.