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For property purchase, the right answer is almost always a commercial mortgage — longer term, lower rate, secured against the property. GGS wins for the deposit, refurb, fit-out or working-capital alongside the property — or for amounts and timelines where a commercial mortgage doesn’t fit. Here’s the head‑to‑head.
Use a commercial mortgage for the property itself (longer term, lower rate, secured against the asset). Use GGS for the deposit, fit-out, working capital, equipment and any growth investment alongside the purchase. The two are routinely combined in the same transaction.
A practical, structured comparison so you can choose with confidence between two of the UK’s most-used SME funding products in 2026.
| Commercial Mortgage | Growth Guarantee Scheme | |
|---|---|---|
| Government backing | No (some lenders use BBB CBILS-era refis) | Yes — 70% guarantee from British Business Bank |
| Loan amount | £75k — £25m+ | £25,001 — £2,000,000 |
| Term length | 5 — 30 years | 1 — 6 years |
| Security | Secured against the commercial property (1st charge) | Unsecured against tangible assets — PG common, PPR (home) cannot be taken |
| Typical interest rate | Generally 6% — 9% (variable, BBR + margin) | ~7.5% — 16% APR |
| LTV | 60–75% typical (owner-occupied) | N/A — not asset-secured |
| Speed to drawdown | 6 — 14 weeks (legals, valuation) | 5 — 15 working days (specialist non-bank GGS lenders) |
| Use of funds | Property purchase, refinance, occasionally refurb | Deposit, fit-out, refurb, plant, working capital, growth, refinance |
| Best for | Buying or refinancing the building itself | Everything else around the building: deposit, refurb, kit, working capital |
For property purchase, a commercial mortgage is materially cheaper — rates of 6%–9% over 25-year terms. For everything else (deposit, refurb, working capital), GGS is the practical answer because a commercial mortgage doesn’t fund those purposes anyway.
GGS is much faster — 5–15 working days vs 6–14 weeks for a commercial mortgage. The mortgage timeline includes valuation, legals and search work that GGS doesn’t need.
Yes — this is the most common combination for property purchases. Commercial mortgage on the property, GGS for the deposit, fit-out, kit and working capital around it. Lenders are familiar with this combined structure.
Different lenders — commercial-mortgage lenders specialise in property security, GGS lenders in cashflow underwriting. There’s very little overlap; they don’t compete head-to-head.
Every page below feeds the same panel of British Business Bank-accredited GGS lenders. Pick the deep-dive that matches your question, or jump to grants and alternative funding routes.
Important information: The Business Hub is a credit broker, not a lender. We introduce UK businesses to a panel of lenders and finance providers. Business finance products for limited companies (including unsecured loans, merchant cash advances and Growth Guarantee Scheme facilities) are generally not regulated by the Financial Conduct Authority. Any rates or quotes shown are indicative, for information purposes only, and subject to status, lender criteria and separate terms & conditions. Personal Guarantees and Indemnities may be required — under the Growth Guarantee Scheme the borrower always remains 100% liable for the debt. We may receive a commission from lenders, which can vary depending on the lender, product or other permissible factors; the nature of any commission model will be confirmed before you proceed.
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