Commercial Mortgage up to 75% Loan to value

Did you know we also arrange Commercial Mortgage products? Here’s how we can help your business grow.

It’s become clear to us at Niche Advice that many of our clients – individuals we’ve helped with residential and buy-to-let mortgages – don’t realise we also specialise in commercial mortgage products. Whether you’re looking to buy or refinance premises for your business (car mechanics, warehouse, shop, dentist, hairdresser, surgery etc.) or investing in commercial property to rent out, we can help.

Here’s a clear breakdown of how commercial mortgages work, what lenders look for, and how we at Niche Advice can guide you through the process so you’re ready to act when the time is right.

What “commercial mortgages” cover

Owner-occupier commercial property: e.g., your business buys the premises in which it operates (retail and industrial units, surgeries, shops, office, warehouses, mixed-use and mechanic garages).

Commercial investment property: you purchase with the intention of renting it out to a business tenant.

Property-based lending via a limited company or special purpose vehicle (SPV) is also possible.

Essentially: if it’s commercial property and property-based, we have lenders and solutions.

What lenders will expect from you

Building on what UK commercial mortgage lenders commonly require:

• Business / borrower track-record
• For investment cases: the investor’s experience matters (owning commercial property/investments before) and the tenancy profile of the target property matters.
• For an owner-occupier case: evidence the business is operating, trading for a period, generating income.
• Directors/owners may need to provide personal financial information, personal guarantees and asset and liability statements.

Financial evidence

• For investment property: proof of rental income or rental projections and lease agreements.
• Business-occupier: trading accounts for 2 or 3 years.
• Last 3 to 6 months’ business bank statements to show cash flow.

Property & security criteria

• The property must be suitable as commercial security (shop, warehouse, surgery, etc) and the lender will value the asset.
• Location, condition, use class, tenant covenant (for investment) all come into the picture.
• If mixed-use the percentage value split between the residential and commercial units.

Loan-to-Value (LTV) / Deposit

• Many commercial mortgages allow up to around 75% LTV in good cases, meaning you need around 25% deposit or equity.
• For more specialist or higher risk properties and industries the deposit may need to be higher (30-40%).

Credit & experience

• A clean credit profile for you (and the business owner/director) is very important. Defaults, CCJs or past issues will reduce lender appetite or increase cost.
• Lenders often expect experience either in your business or as a commercial property investor. They will ask: have you done this kind of project before?

Types of lenders – and how we help you access the right one

There are broadly three tiers of lenders in the commercial mortgage market. Because we work with many lenders and know specialist criteria, we can match your case to the right type.

1. Grade A “High-Street” Lenders – major banks you’ve heard of. These typically have very strict criteria: clean credit history, lower LTVs, strong business/occupier profile, prime lease/tenant for investment.
2. Challenger Banks/Group B Lenders – more flexible. They may support owner-occupiers or investors where you’re seeking “interest-only” over a longer duration or the credit profile isn’t perfect, or you need more flexibility on terms.
3. Specialist/Group C Lenders – more willing to consider “non-standard” cases: complex income, less business history, slightly weaker credit, or specialist property types (e.g., surgeries, hair salons, warehouses, mixed-use). These lenders often charge more but they open doors when the other Lenders won’t.

We ensure you go to the right lender first to avoid wasted time.

Why work with Niche Advice for commercial mortgages

We’ve helped many of our existing residential and buy-to-let clients transition through to commercial lending – you already know us and our service!

We have access to multiple lenders across all tiers (Grade A, challenger, specialist) and understand the subtle differences which are critical for commercial cases.

We’ll help you prepare the application in the strongest way: ensuring the accounts, business plan, credit, tenant/lease details (for investment) are in order so you’re “lender-ready”.

We’ll match your particular case (business type, property type, experience level) to the correct lender first time, saving you time, cost and application risk.

We can handle both owner-occupier and investor scenarios, including cases where you act via a limited company or SPV.

What you should do now

If you’re considering acquiring or refinancing commercial premises, or investing in a commercial property, take a moment to consider:

What is the purpose of the property – owner-occupier or pure investment?

Do you have recent accounts, or business history, or what’s your experience of owning investment property?

What deposit/equity do you have? Are you aiming for circa 25–30% down?

What is the property type (warehouse, shop, medical/surgery, hair/beauty salon, industrial, etc) and is there a tenant or will you occupy it?

Would you like us to run a no-obligation eligibility check to confirm what lenders would support your case and what documentation you need to prepare?

Ready to take the next step?

Don’t let the idea of commercial finance put you off – with the right preparation, the right lender and the right broker (that’s us), we can make it work for you.