How commercial lenders assess a loan
For owner-occupiers, lenders look at business profits and debt service cover. For investment property, they focus on the rent, lease length and tenant strength, and usually lend up to 60% to 75% LTV.
Rates and terms
Commercial terms are often 3 to 25 years, with pricing based on the property, the borrower and the strength of the income.
Frequently asked questions
How much deposit do I need for a commercial mortgage?
Typically 25% to 40% of the value, depending on the property type, the tenant and your experience.
Can I get an interest-only commercial mortgage?
Some lenders offer interest-only or part interest-only, particularly for investment property with strong rental cover.
Are commercial mortgages regulated?
Most commercial mortgages are not regulated by the FCA. Semi-commercial loans where you or family will live in part of the property may be.
Important: Commercial mortgages and most business finance are not regulated by the FCA. Your property may be repossessed if you do not keep up repayments on loans secured against it.