Edinburgh · Scotland · UK-wide
A commercial mortgage funds property used for business — an office, shop, warehouse, care home, pub or a mixed-use building with a flat above a shop. Lending is assessed on the strength of the business or the quality of the tenant rather than on a personal income multiple, typically at 60% to 75% loan to value over 5 to 25 years. Pricing is negotiated case by case rather than taken off a rate table, which is why presentation of the case matters. Prime Mortgages places commercial cases across high-street banks, challenger banks and specialist lenders.
Common questions
Usually 25% to 35% of the value. Owner-occupied premises can sometimes be funded to 75% loan to value, commercial investment typically 60% to 70%, and specialist assets such as pubs or hotels often less. Additional security elsewhere can sometimes lift the effective loan to value.
Realistically 8 to 16 weeks from first approach to drawdown. The valuation and legal due diligence take longer than on a residential case, and Scottish security work has its own timetable. Where speed is essential, bridging finance can complete much faster and be refinanced onto a commercial term loan afterwards.
Generally no. Commercial mortgages and loans taken by way of business fall outside FCA regulation, which means there is no recourse to the Financial Ombudsman Service and Financial Services Compensation Scheme protection does not apply. We will always tell you clearly whether a particular case is regulated or not before you proceed.
It is harder but far from impossible. Lenders will want a credible business plan, evidence of your experience in the sector, and usually a larger deposit — 35% or more. Sector experience matters more than trading history in care, hospitality and licensed premises.
It is the lender's test that the income covers the loan payments with a margin. A DSCR of 1.3 means net profit or net rent is 1.3 times the annual loan payments. Most commercial lenders want between 1.25 and 1.4, and a weak DSCR is the most common reason a commercial case is declined.
Frequently yes, and it is one of the strongest commercial cases you can present — the rent you are already paying demonstrates affordability directly. If your landlord is willing to sell, that transaction is often achievable at up to 75% loan to value.
A twenty-minute conversation will tell you what you can realistically borrow, what it will cost and whether it is worth doing. It is free, and we will tell you honestly if the answer is no.
About these figures. Loan to values, terms and cover ratios on this page describe what lenders in this sector were offering as at August 2026. They are market ranges, not an offer or a quotation, and they are not based on cases we have placed. What any individual lender will do depends on the business, the property, the covenant and your circumstances. Criteria change frequently — ask us for the current position before you rely on any figure here.