Loan Amount (£)
Property Value (£)
Annual Interest Rate (%)
How to Use the Calculator
Enter the loan amount you need (not the property value), the property's current market value, the interest rate you expect to pay (see our rates page for current indicative rates), and your preferred mortgage term in years. The calculator returns the monthly capital repayment payment and the total interest paid over the life of the loan.
Example Commercial Mortgage Scenarios
| Loan Amount | Rate | Term | LTV (£750k property) | Monthly Payment |
|---|---|---|---|---|
| £250,000 | 5.0% | 15 yrs | 33% | £1,976 |
| £500,000 | 5.5% | 15 yrs | 67% | £4,085 |
| £500,000 | 6.0% | 20 yrs | 67% | £3,582 |
| £750,000 | 6.5% | 20 yrs | 75% | £5,592 |
| £1,000,000 | 5.5% | 25 yrs | - | £6,141 |
Interest-Only vs Repayment
Many commercial mortgage borrowers opt for interest-only terms, particularly for investment properties. On an interest-only basis, your monthly payment is simply the loan amount multiplied by the annual rate divided by 12. A £500,000 loan at 6% p.a. interest-only costs £2,500 per month, compared to £3,582 per month on a 20-year repayment basis. The trade-off is that the capital must be repaid in full at the end of the term - usually from a sale or refinance.
Other Costs to Factor In
- Lender arrangement fee: typically 1–2% of the loan amount, sometimes added to the loan
- Valuation fee: £500–£3,000+ depending on property size and complexity
- Legal fees: both your solicitor and the lender's solicitor will charge fees
- Broker fee: typically 1% of the loan, payable on completion
- Stamp Duty Land Tax (SDLT): applicable on purchase; commercial SDLT rates apply
- Buildings insurance: required by all lenders from day one of ownership