The typical range
| Case | Maximum LTV | Deposit |
|---|---|---|
| Established owner-occupier, standard property | 70% to 75% | 25% to 30% |
| Medical, dental, veterinary, pharmacy, legal professions | up to 80% (some lenders 100% with additional security) | 20% or less |
| Commercial investment with a good tenant | 65% to 70% | 30% to 35% |
| Semi-commercial | 70% to 75% | 25% to 30% |
| Trading business (pub, hotel, care home) as a going concern | 60% to 70% of the going-concern value | 30% to 40% |
| New business, weak accounts, unusual property | 50% to 65% | 35% to 50% |
Why so much more than a house
Commercial property is harder to sell, values swing more, and there is no government guarantee scheme behind it. The deposit is the lender's cushion against a forced sale at a discount.
Ways to reduce the cash
- Additional security. Equity in another property (your home, a buy-to-let, other commercial premises) can stand in for some of the deposit. Common with high street banks for owner-occupiers.
- Buy below value. Some lenders lend against valuation rather than price if you are buying from a motivated seller or a connected party, though many will use the lower of the two.
- Vendor finance. The seller leaves part of the price outstanding as a loan; some lenders accept it as deposit, many do not.
- Directors' loans and gifts into the company are acceptable if evidenced; borrowed deposits (personal loans, credit cards) are not.
- Pension purchase. A SIPP or SSAS buying the premises uses pension money, not cash, for the deposit. More here.
- Lease with option to buy while you build the deposit and the trading history.
The deposit is not the only cash
Add stamp duty, fees (3% to 5% of the loan), any VAT on the purchase, and working capital for the move. On a £400,000 purchase, £120,000 deposit is really £137,000 or more. The costs calculator shows the full figure.
A note on the numbers. Rates, loan-to-value limits, fees and criteria are typical figures at the time of writing (2026). Commercial lending is priced case by case, so your own terms depend on the property, the business, the tenant and you. This is information, not advice, and not an offer of finance.
Quick answers
Can I get a 100% commercial mortgage?
Only with additional security worth the difference, and only for strong professional practices with some lenders. For everyone else, no.
Does the deposit have to be in the company's bank account?
By completion, yes, and the lender will want to see where it came from. Directors' loans are fine; the source of the director's money will be checked too.
Ready to talk to someone who can actually arrange it?
Tell us about the property and the business, and a commercial finance adviser will come back with which lenders fit, what rate to expect and what they'll want to see. No fee for the conversation, no obligation.