Mortgage guide
What is the minimum deposit for commercial property?
The minimum deposit for commercial property is usually around 25% to 30% of the property’s purchase price. However, the exact amount can vary depending on the type of property, the risk profile of the business or investment, and the lender’s criteria.
- Published
- 4 Aug 2026
- Last reviewed
- 4 Aug 2026
- Reading time
- 2 min
What is the minimum deposit for commercial property?
The minimum deposit for commercial property is usually around 25% to 30% of the property’s purchase price. However, the exact amount can vary depending on the type of property, the risk profile of the business or investment, and the lender’s criteria.
For standard commercial mortgages, such as buying an office, shop, or warehouse, lenders typically ask for a deposit of:
- 25% for lower-risk deals (e.g. strong business finances, good credit, established trading history)
- 30-40% if the deal is higher risk (e.g. start-ups, niche property types, poor credit)
In some cases, lenders may go lower than 25%, but only if the borrower offers additional security or has an exceptionally strong application. As mentioned earlier, certain professionals like doctors, dentists, and pharmacists may qualify for 10% or even 0% deposit options, especially for owner-occupied premises.
If you’re investing in property to rent out (i.e. a commercial investment mortgage), lenders tend to want larger deposits, often closer to 30-40%, because rental income can be less predictable.
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 I use my pension as a deposit on a commercial property?
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.
What is the deposit for a semi-commercial mortgage?
Deposits for semi-commercial mortgages typically range from 20% to 35% of the property value. Higher deposits may be required where income is uncertain, units are vacant, or lease terms are considered weaker by the lender.
What is a bridging loan for commercial property?
A bridging loan for commercial property is a short-term, property-backed loan used to purchase, refinance, or stabilise commercial or mixed-use assets when a commercial mortgage is not immediately available. It is exit-driven, typically capped around 75% loan-to-value, and repaid through sale or refinance rather than ongoing affordability.
Can you get a mortgage above a commercial property?
Yes, you can get a mortgage on a property above a commercial unit, but it is classed as mixed-use or non-standard. Lenders assess the type of business below, access arrangements, lease terms, and resale risk, with fewer lenders and in some cases higher deposit requirements than standard residential properties.
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