Mortgage guide
How much commercial mortgage can i afford?
How much commercial mortgage you can afford is determined primarily by income sustainability and debt servicing capacity, not personal income multiples. Commercial lenders assess affordability using a cash-flow-led model, supported by property value and sector risk.
- Published
- 4 Aug 2026
- Last reviewed
- 4 Aug 2026
- Reading time
- 2 min
How much commercial mortgage can i afford?
How much commercial mortgage you can afford is determined primarily by income sustainability and debt servicing capacity, not personal income multiples. Commercial lenders assess affordability using a cash-flow-led model, supported by property value and sector risk.
In practice, lenders calculate affordability by applying a Debt Service Coverage Ratio (DSCR), typically between 1.25x and 1.5x, to the net rental income (for investment property) or maintainable business profits (for owner-occupied or trading premises). This means the property or business must generate sufficient surplus income to comfortably cover loan repayments after stress testing interest rates. The final loan amount is then capped by the lower of affordability or loan-to-value (LTV), which usually ranges from 60% to 75%, depending on the sector, asset quality, and lender appetite.
In summary, your affordable commercial mortgage is driven by:
- Sustainable rental income or trading profits
- Lender stress-tested interest rates
- Required DSCR
- Maximum LTV for the property type
Even high-value properties will be limited if income cannot support the debt, while strong, stable income can materially increase borrowing capacity within lender risk limits.
Commercial mortgage calculator
Choose owner occupier for a business buying or refinancing premises it trades from, assessed on adjusted net profit before tax from the latest accounts, or investment for property let to tenants, assessed on lease income.
Commercial mortgage criteria
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Criteria | Detail |
|---|---|
| Max Loan to Value (LTV) | 80% LTV Care Home Mortgages, 100% LTV Medical Commercial Mortgages, 75% Commercial Investment |
| Max Term | Up to 40 years |
| Completions | From 4 weeks |
| Repayment options | Capital repayment and Interest only |
| Commercial mortgage rates | From 6.19% |
| Rate options | Variable, Base Rate Tracker, 2, 3 or 5 year fixed mortgage options |
| Valuation methods | Going concern/Investment (Market value 1, MV1), MV2, MV3 or bricks and mortar |
| Flexible Leases | Rolling leases, weak covenants and short time remaining accepted |
| Adverse credit | Accepted on some products on a case by case basis |
| Locations | Available in England, Scotland, Wales and Northern Ireland |
| Experience | Not required on certain products |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| Max Loan to Value (LTV) | 65% |
| Product fee | 5% (4.74% for existing customers) |
| Fixed rate (5 years) | 6.34% |
Related case studies
Frequently asked questions
Can you get a 90% commercial mortgage?
Yes, 90% loan-to-value commercial mortgages are possible, but only in limited sectors such as healthcare properties, pharmacies, or certain convenience stores with strong trading history. For most other commercial properties, maximum lending is typically capped at around 70% to 75% LTV.
What is a commercial mortgage?
A commercial mortgage is an asset-backed loan secured against commercial, semi-commercial or large-scale investment property. Lenders assess it on income sustainability and asset risk rather than personal income multiples, and pricing is set case by case, usually as a margin over Bank Rate.
What is commercial lending?
Commercial lending refers to loans secured against property used for business purposes, such as offices, retail units, or industrial premises. Terms, rates, and deposits are individually assessed and typically differ from residential mortgages.
What is a commercial bridge?
A commercial bridge is a short-term, property-backed loan used to purchase, refinance, or stabilise commercial or mixed-use property when a standard commercial mortgage is not immediately available. It is exit-driven, typically runs for 3-12 months, uses rolled-up interest, and is repaid through sale or refinance rather than ongoing affordability.
What is a semi-commercial mortgage?
A semi-commercial mortgage is a loan on a property that combines commercial and residential parts, such as a shop with a flat above, and is also called a mixed use mortgage. Lenders assess the combined rental income, the residential proportion and the commercial tenant's lease, or the business where the owner trades from the premises, and it is usually arranged with commercial or specialist lenders. A loan to an individual or trustees is a regulated mortgage contract where at least 40% of the property, measured by floor area, is lived in by the borrower or a related person; otherwise it is usually unregulated business lending.
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