Retail Property Mortgages
Beacon Finance Brokers arranges commercial mortgages for retail units - owner-occupied shops, let investments, or mixed-use premises with residential above - on high streets and out-of-town retail sites across Scotland and the UK.
Discuss Your FinanceSpeak to a Broker
Tell us about the property and we'll come back with options. Or speak directly with a broker who works in this area.
Discuss Your FinanceWhat We Help With
Retail lending has tightened in some locations as high-street footfall patterns shift, which makes tenant strength and lease length matter more than they used to. Knowing which lenders still have appetite for a specific retail location is most of the work.
- Does high-street location versus out-of-town retail affect lending terms?
- What loan-to-value can you expect if the unit is currently vacant versus let?
- Can you buy a retail unit with residential flats above it on one mortgage?
- How does lease length to an existing tenant affect what's available?
Key Things Lenders Look At
- Location and footfall
- Tenant covenant strength, if let
- Lease length remaining
- Vacancy risk and void period history
- Property condition
- Business trading history, if owner-occupied
- Deposit or existing equity
- Personal guarantees
Use Cases
From a single owner-occupied shop to a parade of let retail units, retail mortgage terms vary sharply by location and tenant strength.
An owner-occupier buying the unit their business already trades from is a different proposition to an investor buying a let shop cold - the lender is really underwriting the business as much as the bricks and mortar.
Related Sectors
Frequently Asked Questions
Can I get a mortgage for a vacant retail unit?
It's harder than for a let or owner-occupied unit, but possible - lenders will want a clear plan for occupation or trading, and terms are typically more conservative.
Does it matter if the retail unit has flats above it?
Yes - mixed-use property is lent against by fewer specialist lenders than pure retail, and terms differ from a standalone commercial unit.
What affects the interest rate most on a retail mortgage?
Tenant strength (if let) or trading history (if owner-occupied), location, and lease length are the biggest factors - more than the headline property value alone.