Mortgage guide
What is the minimum commercial mortgage?
Read about minimum borrowing amounts and the lender criteria that affect smaller commercial mortgage applications.
- Published
- 4 Aug 2026
- Last reviewed
- 8 Oct 2026
- Reading time
- 2 min
What is the minimum commercial mortgage?
The minimum commercial mortgage amount is usually £25,001. This is because loans below £25,000 are typically regulated under consumer credit rules, while loans of £25,001 and above fall under commercial lending regulations, which are more flexible and tailored to business borrowing. Most high street and specialist lenders set this as their entry point for commercial mortgages.
While borrowing at the minimum threshold is possible, it’s worth noting that more options become available to borrowers looking to borrow larger amounts. Lenders tend to offer more competitive rates, a wider choice of products, and greater flexibility on terms and repayment structures when the loan size increases. This is because larger loans are often associated with stronger businesses or more valuable assets, which can reduce the lender’s risk.
If you’re seeking to borrow less than £25,000, alternatives such as business loans, secured loans, or a bridging loan might be more suitable, depending on the nature of the property and your plans for it.
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% |
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Frequently asked questions
What is the minimum deposit for a commercial mortgage?
Commercial mortgages typically require a deposit of 20-30% of the property value, although higher-risk cases may require more.
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.
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