How much can I borrow on a commercial mortgage?
Lenders cap the loan two ways: against the property value and against the profit or rent that has to cover the payments. Enter your figures to see which limit bites, and the loan and deposit that leaves.
How much could I borrow?
The way lenders test it: an owner-occupier from the business's profit, an investor from the rent. Both capped by loan-to-value.
70% to 75% owner-occupier; 65% to 70% investment.
Profit before tax, after directors' pay, adding back depreciation and the rent you'll stop paying.
Profit ÷ annual payments. 1.25 to 1.5 is typical.
Rent ÷ annual interest at the stress rate. 125% to 145% is typical.
Investment loans are tested on interest, so the term matters less.
- Limited by loan-to-value
- £0
- Limited by profit cover
- £0
- Deposit needed at that loan
- £0
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.
The two limits
The first limit is loan-to-value. Lenders typically go to 70% to 75% of value for a business buying its own premises, and 65% to 70% for investors. The second is affordability, and it works differently depending on who is borrowing. You can borrow the lower of the two, which is what the calculator shows.
Buying your own premises: profit cover
For an owner-occupier, the lender looks at the business's profit and wants it to cover the mortgage payments with room to spare, commonly 1.25 to 1.5 times. Lenders usually start from net profit and add back items such as depreciation, interest on borrowing that the new loan replaces, and often the rent the business stops paying once it owns the building. That adjusted figure is what to put in.
Investment property: rental cover
For an investor, the test is the rent. Lenders typically want the annual rent to cover the interest by 125% to 145%, worked out at a stress rate that is higher than the rate you will actually pay. The length of the lease and the strength of the tenant matter as much as the figure, so a long lease to an established business supports a bigger loan than a short one.
If the answer is lower than you need
The usual levers are a bigger deposit, a longer term, interest-only on part of the loan, offering extra security, or a lender whose tests suit your case better. Lenders' criteria vary a lot, which is where an adviser earns their keep. See what lenders look for, then work out the cash side with the deposit calculator and the monthly cost with the commercial mortgage calculator.
These figures are an illustration, not a quote or an offer of finance. What a lender actually offers depends on its assessment of the property, the business and you.
Common questions
Do commercial lenders use income multiples?
Not in the way home lenders do. They look at whether the business profit or the rent covers the payments, as well as at the property value.
Does my personal income count?
The main test is the business or the rent, but lenders also look at the owners, and many ask for personal guarantees from directors.
Can I borrow against a commercial property I already own?
Yes. The same two limits apply to a remortgage or capital raise. See the remortgage and capital raising guide.
How accurate is this?
It uses typical lender tests, so treat it as a guide. Lenders vary, and an adviser can tell you how specific lenders would view your case.
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.