Deposits, fees and the real cost
The monthly payment is only part of the picture. Here are the other costs to budget for with a commercial mortgage.
Written by Matt Vincent DipFA, CeMAP, CeRER, BSc · Published 25 June 2026 · Version 1.0 · 5 min readWhen you compare deals, look beyond the headline rate. A lower rate with high fees can work out dearer than a slightly higher rate with low fees, which is why our results let you sort by the total cost over the deal, not just the monthly figure.
The deposit
Most commercial lenders will lend between 65% and 75% of a property's value, meaning you'll typically need a deposit of 25% to 35%. The bigger your deposit (the lower your LTV), the better the rates you'll tend to see.
Fees and costs to expect
| Cost | What it is |
|---|---|
| Arrangement fee | The lender's fee for setting up the loan, often 1–2% of the amount. Some lenders will allow this to be added to the loan; if you choose to do this, you will be charged interest on this additional amount. |
| Valuation fee | Paid to a surveyor to value the property. Commercial valuations cost more than residential ones. |
| Legal fees | Your solicitor's costs, and often the lender's legal costs too. |
| Broker fee | A fee for arranging and packaging the case (your broker will tell you this upfront). |
| Early repayment charges | A charge if you repay or exit a fixed deal early, check before you commit. |
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This guide was published on 25 June 2026 (version 1.0) and reflects our understanding at that time. It is general information about commercial mortgages, not financial advice or a recommendation. Lending criteria, interest rates and tax rules change over time, so please confirm current details with a qualified advisor before acting. Reference: PL-CM-DEPOSITAND-v10.