How do you get a commercial mortgage?
Getting a commercial mortgage follows a clear sequence: prepare and package your case, match it to lenders whose criteria fit, receive a decision in principle, complete a valuation, work through the legals, and draw down the funds. Traditionally this takes 6 to 12 weeks, but the packaging stage, which is often the slowest, can be dramatically shortened with a well-prepared, lender-ready case.
Step 1: Prepare your case
Lenders want to understand the property, the numbers, and the business or investor behind the deal. Before you approach anyone, gather:
- Business accounts, usually the last two to three years
- Recent business and personal bank statements
- Details of the property, including any leases and tenant information
- A business plan or financial forecasts, particularly for owner-occupied deals
- Information on the borrowing entity, such as the company or SPV, and its directors
- Identification and proof of deposit
Presenting this clearly, in the format lenders expect, is what a credit paper does, and it is the single biggest factor in a fast decision.
Step 2: Match to the right lenders
Commercial lending is highly specialist. Different lenders favour different asset types, LTVs, and borrower profiles. Approaching the wrong lender wastes weeks and can dent your case. The goal is to present to the handful of lenders most likely to say yes on the best terms. This is where matching technology earns its keep, as covered in our overview of what a commercial mortgage is.
Step 3: Decision in principle
A lender who likes your case will issue a decision in principle or indicative terms, setting out the loan amount, rate, fees, and conditions. This is not a formal offer, but it confirms the lender's appetite and lets you proceed with confidence. Compare terms across lenders on both rate and fees, using our rates and fees guide.
Step 4: Valuation
The lender instructs a valuation to confirm the property is worth what you are paying and is suitable security. Commercial valuations are more involved than residential ones, often assessing rental value, lease terms, condition, and marketability. The valuation confirms the LTV, which sets your final loan amount. Our deposit and LTV guide explains how this works.
Step 5: Formal offer and legal work
Once the valuation is satisfactory, the lender issues a formal mortgage offer. Solicitors on both sides then carry out legal due diligence: checking title, leases, searches, and any planning or environmental matters, and preparing the security documents. This stage can take a few weeks depending on the complexity of the property and how responsive everyone is.
Step 6: Completion and drawdown
When the legal work is complete and conditions are satisfied, the loan completes and funds are drawn down. For a purchase, this is when the property transfers to you. For a refinance, this is when the new loan replaces the old one and any surplus equity is released.
How to speed up the process
The biggest delays come from an incomplete or poorly presented application and from approaching lenders who were never going to fund the deal. To move faster:
- Have all your documents ready before you start
- Present the case as a clear, lender-ready credit paper
- Match only to lenders whose criteria genuinely fit
- Respond quickly to lender and solicitor queries
Assesr builds a lender-ready credit paper in around 60 seconds and matches your commercial mortgage to specialist lenders whose criteria fit, at a quarter of the typical broker fee. You pay the 0.5% Assesr Fee on drawdown, nothing until your deal completes.
Frequently asked questions
How long does it take to get a commercial mortgage?
Traditionally 6 to 12 weeks from application to completion, covering packaging, lender review, valuation, and legal work. A well-prepared, lender-ready case can significantly shorten the packaging stage.
What documents do I need for a commercial mortgage?
Typically business accounts, bank statements, details of the property and any leases, a business plan or forecasts, identification, and information on the borrowing entity and its directors.
Do I need a broker to get a commercial mortgage?
Not necessarily. Because commercial lending is specialist, many borrowers use a broker or a matching platform to reach the right lenders. Platforms like Assesr package and match your deal at a lower fee than a traditional broker.