How much deposit is needed for a commercial mortgage?

On the cases we arrange, investment property typically needs a deposit of 25% to 40%. Owner-occupied retail lending can reach 80% loan-to-value, and on medical, dental and pharmacy transactions we currently see a number of options at up to 100% of an MV3 valuation, so no deposit may be needed on the right case. That reflects our experience of the current market, not a standard lender rule.

Yes, in three ways within the pension rules. Any other withdrawal, including a loan to you, is an unauthorised payment, taxed heavily. From the minimum pension age, usually 55 but 57 from 6 April 2028, you can take benefits and spend the cash, normally up to 25% tax free, with the rest taxed as income (gov.uk: tax-free lump sums). The scheme can instead buy the property, using its own funds as the deposit and borrowing up to 50% of its net assets, and let it to your business at a market rent. A small self-administered scheme (SSAS) can also make a loanback to its sponsoring company, secured by a first charge on another asset. A financial adviser authorised to advise on pensions can say which route suits you.

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.

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.

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.