What lenders typically weigh
For this situation, UK SME lenders typically weigh a small set of signals more heavily than others. The strength of each lever affects which lenders will look at the case and what terms you might expect:
- Deposit
- Owner-occupied typically 25–35% deposit; investment typically 30–40%. Larger deposits unlock better pricing and broader lender pool.
- Affordability or rental cover
- Owner-occupier — trading profits must cover the mortgage with margin. Investment — rental income at 125–150% of the payment.
- Property type
- Vanilla commercial (offices, warehouses, retail units) is well-served. Specialist use class, mixed-use or unusual properties have narrower lender pools.
- Borrower track record
- For owner-occupiers, 2+ years of accounts and stable profits. For investors, evidence of portfolio experience and personal wealth.
- Director credit and PG
- Director personal guarantee almost always required. Director credit checks standard.
Finance types that usually fit this situation
Commercial Mortgage
Long-term commercial property purchase/refinance funding.
Bridging Finance
Short-term property-backed finance.
UK lenders that often look at this situation
The lenders below publish criteria consistent with this situation. Final approval is always subject to lender underwriting.
Allica Bank
Asset finance
- Amount
- £25k–£2.5m
- Speed
- Not disclosed
- Security / PG
- Asset-backed; up to 100% advance
- Data confidence
- High
Shawbrook
Commercial mortgage
- Amount
- £150k–£35m; trading range £150k–£1.25m
- Speed
- Not disclosed
- Security / PG
- Up to 75% LTV
- Data confidence
- Medium
NatWest
Invoice discounting
- Amount
- Not disclosed
- Speed
- Not disclosed
- Security / PG
- Debtor book security
- Data confidence
- High
Metro Bank
Commercial mortgage / loan
- Amount
- Commercial mortgage up to £5m at 85% LTV
- Speed
- Not disclosed
- Security / PG
- Security likely
- Data confidence
- Medium
Redwood Bank
Commercial mortgage
- Amount
- £250k–£10m
- Speed
- Not disclosed
- Security / PG
- Property-backed; c.71–76% LTV depending product
- Data confidence
- High
If you can't qualify yet
If commercial mortgage applications aren't returning offers, the most common gaps are insufficient deposit, weak affordability evidence, or unusual property type. Larger deposits (35–40%) materially widen the lender pool for less-favoured property types. For owner-occupiers with weak trading history, a bridging loan to complete the purchase followed by refinance onto a commercial mortgage 6–12 months later is a common workaround. Investors with rental shortfalls may need to find tenanted property or accept lower LTV. Specialist mortgage brokers add value for complex commercial cases where direct-lender criteria don't fit.
Frequently asked questions
- How much deposit do I need for a commercial mortgage?
- Typically 25–35% for owner-occupied commercial property and 30–40% for investment property. Some specialist lenders may go higher LTV for prime properties with strong tenants, but mainstream UK commercial mortgage criteria sit in that range.
- How long does a commercial mortgage take?
- Typically 6–12 weeks from agreed terms to completion. Specialist or complex cases can take longer. If timing is critical, a bridging loan can complete in 2–4 weeks and then refinance to a commercial mortgage.
- Can a limited company own commercial property?
- Yes — most UK commercial property is held in limited companies or SPVs (special purpose vehicles). Lenders underwrite the company plus directors and usually take a charge over the property plus a director PG.
- Will I need a personal guarantee?
- Almost always for SMEs. Some lenders cap PG exposure at a percentage of the loan; some take a full recourse PG. Larger, well-established borrowers can sometimes negotiate this down on a case-by-case basis.
- Can I get a commercial mortgage with limited accounts?
- More difficult — most lenders want 2+ years of filed accounts for owner-occupied. Investment cases can sometimes be underwritten on rental cover alone, even for new investor SPVs, if personal wealth and experience are strong.