TSB commercial mortgage review
TSB offers a commercial mortgage for business owners buying premises to trade from. This guide sets out the published purpose, minimum loan size, term, security requirements and rate structure, drawing only on TSB's own product information rather than tested applications or customer feedback.
By Funding Fred · Sources checked 19 September 2026
This is an information page. A Funding Fred enquiry for this product is not available here; check the provider’s official information for current options.
Potential fit
Who could consider TSB?
- Sole traders, partners or directors buying premises for their business to occupy or use, where the loan amount needed is at least £25,001.
- Businesses that already hold a TSB business account, as required by the published eligibility criteria.
- Applicants able to offer a first legal charge over the property being purchased, as this is TSB's stated security requirement.
Worth weighing up
When to consider other options
- The amount needed is £25,000 or less, since TSB's published minimum sits above this threshold.
- Speed is critical and unsecured funding might bridge a shorter-term need, see this overview of business loans for other structures.
- The premises purchase is part of a wider development or conversion project, where a different lending structure may fit better; this comparison of development finance versus a commercial mortgage explains when permanent debt makes more sense.
Understand the offer
Costs and repayments
TSB's commercial mortgage can be arranged on either a fixed rate or a rate linked to base rate, according to its published product information. Arrangement fees apply to the facility, and the exact rate, fee amount and monthly repayment figure will depend on the individual case, these are only confirmed once TSB issues a written quote or offer, not from generic published ranges.
Loans can run for up to 25 years, which spreads repayments over a long period but also means a long-term commitment secured against business premises. Applicants choosing a fixed rate should note that TSB's information flags early repayment charges, sometimes called break costs, if the loan is repaid or refinanced before the fixed period ends.
Where the mortgage is arranged on an interest-only basis, only the interest is paid during the term, and the full capital balance remains outstanding and due at the end. Anyone considering this route needs a clear, credible plan for repaying or refinancing that capital sum when the term finishes.
Eligibility and application
Based on TSB's own eligibility criteria, applicants must be an adult, and must be a sole trader, partner or director of the business applying. Security is required in the form of a first legal charge over the property being purchased, and TSB's published criteria require an existing TSB business account. Meeting these baseline points does not guarantee approval; TSB will still assess the specific application, the property and the business's financial position.
Applications are handled directly with TSB rather than through this guide. Anyone interested should consult TSB's commercial mortgage page for the current application process and to request a formal quote reflecting their own circumstances.
Advantages to weigh up
- A defined minimum of £25,001 gives a reasonably clear starting point for applicants planning a premises purchase.
- A term of up to 25 years allows repayments to be spread over a long period, which may ease monthly cash flow.
- A choice between a fixed rate and a base-rate-linked rate gives some flexibility in how interest cost is structured over time.
Limitations to understand
- Only published headline terms are confirmed here; the actual rate, fee and monthly cost figures are not disclosed publicly and require a direct quote from TSB.
- Fixed-rate borrowers may face break costs if they repay or refinance early, which can be a material cost depending on timing.
- Interest-only arrangements leave the full capital sum outstanding at the end of the term, requiring a separate repayment or refinancing plan.
Look at the wider picture
Comparing the alternatives
Because TSB's exact pricing depends on individual circumstances, any comparison against other lenders' commercial mortgages should be based on written offers rather than headline rates. Two written quotes covering the same loan amount, term and security position give a much clearer picture than published ranges alone, since fees and rate margins can vary significantly between cases.
It's also worth checking whether a mortgage is the right structure at all, versus a secured loan against other business assets or a shorter-term facility. This guide to secured business loans sets out how asset-backed borrowing works outside the property mortgage context, which can be useful when weighing structure against cost and flexibility.
This article is provided for information purposes only, based on TSB's published product details. It does not constitute financial advice, and there is no application or comparison route to TSB through this guide, since this product has no matched enquiry pathway here.
YBS Commercial Mortgages
owner-occupied commercial mortgages
Purpose: Owner-occupied business premises.
Read reviewProduct features checked against each provider’s UK website. These are comparison pointers, not a price ranking or a promise of eligibility.
Your TSB questions, answered
Costs, eligibility and the details to check before applying.
How we put this guide together
This is a review of published UK product information, not a customer experience or a hands-on test. We have not assigned a star rating. This guide focuses on TSB — commercial mortgages. Other products may have different terms.
Sources checked 19 September 2026. Your written offer determines your actual costs and conditions.
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