Commercial mortgage calculator

Commercial mortgage calculators often show only a monthly payment. In practice, arrangement fees, valuation, legal work and whether fees are added to the loan change your day-one cash requirement and the true cost over the term.

This commercial mortgage calculator UK businesses and investors can use for planning separates repayment and interest-only structures, shows LTV as you edit inputs, and itemises day-one costs so you can compare quotes on a like-for-like basis.

Owner-occupier commercial mortgages are assessed on your business trading performance and the property's suitability for your operations. Investment property is assessed primarily on rental income — lenders apply a stressed interest rate and minimum interest cover ratio.

Toggle investment mode to see the rent required under typical ICR assumptions. This is illustrative; each lender sets its own stress rate, ICR and tenant criteria.

On a £500,000 property with 25% deposit, 7% rate and 20-year repayment term, the loan is £375,000 and monthly payment about £2,907. Adding a 1.5% arrangement fee paid upfront plus £3,500 valuation and legal costs, day-one cash is roughly £128,500 plus stamp duty (not calculated here).

At 8% rate — one point higher — the monthly payment rises to about £3,100. Edit inputs to match your scenario, then request an exact figure from Tera's lender panel.