I buy, let or develop property as a business
Commercial mortgages, bridging loans and property lenders, and the tax to budget for when you buy, cheapest first.
Property businesses borrow against land and buildings, so most of their money comes from loans secured on the property: a commercial mortgage for property you keep for the long term, and a bridging loan for a short gap, such as buying before a sale or a mortgage comes through. If you do not keep up the repayments, the lender can take and sell the property.
Budget for tax on the purchase as well as the deposit. In England and Northern Ireland, Stamp Duty Land Tax on non-residential property is 0% on the first £150,000, 2% on the next £100,000 and 5% on the rest. If you already own a home, buying another residential property usually costs 5% on top of the residential rates. Scotland has Land and Buildings Transaction Tax instead, and Wales has Land Transaction Tax.
The routes here are business finance. Mortgages for letting out homes (buy-to-let mortgages) are not covered.
7 routes to look at, cheapest first
Compare the first 4 side by side- L1
Very cheap or subsidised
Borrowing on better terms than the market, usually because a public body, community lender or large buyer is involved. - L2
Mainstream secured debt
Standard borrowing from banks and mainstream lenders, often secured on assets or backed by a personal guarantee.- Government-backed and community lending
Development Bank of Wales
The Welsh Government's own development bank, offering loans from £1,000 to £10 million and equity investment to businesses based in Wales or moving there. Loans are priced on risk.
Weeks£1k to £10mLoans, or shares if you choosePersonal guarantee likely - Government-backed and community lending
Scottish National Investment Bank
Scotland's public development bank, which invests £1 million to £50 million of long-term debt or equity in businesses and projects that serve its missions: net zero, places and innovation.
6 months or more£1m to £50mLoans, or shares if you choose - Bank and mainstream debt
Bank term loan
A fixed amount borrowed from a bank or other mainstream lender and repaid in regular instalments over an agreed term, with interest.
WeeksPersonal guarantee likely - Bank and mainstream debt
Commercial mortgage
A long-term loan secured on business property, to buy premises you will use yourself or rent to another business.
Months
- Government-backed and community lending
- L3
Specialist secured debt
Borrowing secured on specific assets such as invoices or stock, with more fees and conditions than mainstream debt. - L4
Expensive or fast
Quick to arrange, often unsecured, and usually the most expensive way to borrow.
Worth knowing
- Ask for the full cost of a bridging loan, including arrangement and exit fees, and know how you will repay it before you take it out.
- Work out the tax with HMRC's Stamp Duty Land Tax calculator, or the Scottish or Welsh tax, before you make an offer.
- If a lender asks for a personal guarantee as well as a charge on the property, you would owe whatever is left personally if the property sells for less than the loan.
Sources
- GOV.UK: Stamp Duty Land Tax · checked 21 October 2026
- GOV.UK: Stamp Duty Land Tax: rates for non-residential and mixed land and property · checked 21 October 2026
Facts about each route are sourced on its own page.