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.
A commercial lender is underwriting a business proposition, not ticking an affordability calculator. The three things that decide the outcome are debt service cover, the quality of the security, and the credibility of the borrower.
| Type | Typical LTV | Notes |
|---|---|---|
| Offices and retail units | 65%–75% | Strong appetite where the tenant covenant is good |
| Industrial and warehousing | 65%–75% | Currently one of the better-supported sectors |
| Semi-commercial (flat above shop) | 70%–75% | Often better priced than pure commercial |
| Care homes | 60%–70% | Registration status and CQC/Care Inspectorate grade are central |
| Pubs, hotels and restaurants | 50%–65% | Trading accounts and operator experience drive the decision |
| Land and development | 50%–65% of GDV | Usually structured as development finance rather than a term loan |
If your business will trade from the building, you are an owner-occupier. Lenders will look at your business accounts, and the rent you currently pay a landlord is often the strongest argument in the case — many businesses find the mortgage payment is lower than the rent it replaces.
If you are buying to let the property to a third party, it is a commercial investment case and the lender underwrites the lease and the tenant.
We look at accounts, the property and your objective, and tell you honestly whether it is fundable and at roughly what terms — before anyone pays a fee.
Commercial terms are negotiated. We put a properly presented case to the lenders most likely to want it, rather than submitting a form and hoping.
The lender issues indicative terms setting out amount, rate, fees and conditions. Nothing is binding at this stage.
A commercial valuation is instructed, alongside legal due diligence. This is the longest part of the process.
Facility letter issued, conditions satisfied, funds drawn. Typically 8 to 16 weeks from start to completion.
No fee for the initial conversation, and no obligation. We usually reply the same working day.
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.