Commercial Finance
Whole-of-market commercial and semi-commercial finance, matched to the right lender from the start. Investment, owner-occupied, mixed-use and complex deals.
- Agreement in Principle in 24 hours
- Over 100 lenders
- Whole-of-market advice
Commercial finance is assessed very differently from residential or buy-to-let. Income, risk and property type all matter, and how the deal is structured is as important as the numbers. Had a deal declined? The problem is usually how it was presented, not the deal itself.
Why commercial borrowers come to us
We speak DSCR
We map your rental or business income to the lender’s Debt Service Coverage Ratio before we apply, so your numbers stack up first time rather than after a decline.
Every asset class covered
Retail, office, industrial, mixed-use and blocks beyond buy-to-let limits each attract a different lender pool. We know which lenders want which assets.
One decline is not the end
Commercial lending is bespoke, not standardised. A case that one lender turns down often passes with another whose appetite fits your deal.
The deal structured properly
Personal versus limited company ownership, leverage and repayment strategy all need to align with lender criteria from the outset. We get that right first.
An exit plan from day one
Commercial lenders want to know how the loan will be repaid, especially on transitional assets. We build the exit or long-term strategy into the application.
First-timers welcome
Track record helps, but you do not need a portfolio to start. With the deal presented the right way, first-time commercial buyers can still access the market.
How we structure a commercial deal
Match the lender to the property
The asset class sets the lender pool, the risk profile shapes the approach, and the deal size narrows the options. We place you with lenders who actually want your asset type.
Align income with lending criteria
We map rental income to DSCR for investment deals, or assess business accounts and trading performance for owner-occupied premises, factoring in tenant and lease strength.
Structure the deal correctly
Personal or limited company ownership, leverage tuned to the asset, and a confirmed repayment strategy. We settle this before the application goes anywhere.
Plan the exit or long-term hold
Transitional assets need a forward plan, repositioning is structured with the exit in view, and future refinance viability is confirmed up front.
What is commercial property finance?
Commercial finance covers property used for business purposes, generating commercial income, or that falls outside standard residential lending criteria. That includes shops, offices, warehouses, mixed-use buildings and blocks beyond buy-to-let limits. Unlike residential lending, how the deal is structured matters as much as the figures.
This page is for you if
You are buying or refinancing a commercial property, investing in income-producing assets, purchasing a mixed-use or semi-commercial building, acquiring premises for your own business, or your deal simply does not fit standard buy-to-let or residential criteria.
How commercial lenders assess your deal
Commercial underwriting looks at the whole picture, not just the headline numbers. Five factors are weighed together, and a weakness in one can usually be offset by strength in another when the deal is presented correctly.
Income and debt servicing (DSCR)
Measures income against loan repayments. Typically 110 to 140 per cent or more is required, replacing the ICR used in buy-to-let.
Property type
Retail, office, industrial and mixed-use each attract a different lender pool, and some sectors have far fewer options than others.
Tenant or business strength
Lease length, tenant quality and rental stability for investment deals, or business accounts and trading performance for owner-occupied premises.
Loan-to-value
Usually 60 to 75 per cent, lower than buy-to-let. Higher-risk assets, weaker tenants or shorter leases push the LTV down.
Experience and investor profile
Track record and background matter, but first-timers can still access the market when the deal is presented in the right way.
Deal structure
Ownership, leverage and repayment strategy all need to line up with the chosen lender’s criteria before the application is submitted.
Types of commercial finance we arrange
Commercial finance is not one product. The right structure depends entirely on what the property is, who is behind it, and what the long-term strategy is.
| Finance type | Best for | How it is assessed |
|---|---|---|
| Commercial investment mortgage | Property leased to tenants for long-term income | Rental income assessed via DSCR |
| Owner-occupied commercial mortgage | Buying or refinancing your own business premises | Business income and trading performance |
| Semi-commercial mortgage | Mixed-use property, such as a shop with flats above | Blended value and combined income |
| Large and complex investment deals | Large blocks, MUFBs and portfolio acquisitions | Bespoke lender solutions |
| Bridging into commercial finance | Short-term acquisition and asset repositioning | Planned exit into a commercial mortgage |
Why commercial deals get declined
Most declines happen because the deal is not structured or presented correctly, not because the asset is fundamentally un-financeable. The right lender, matched to the right deal, makes the difference.
Income misread against DSCR
Many applicants do not understand how their income will be measured against the Debt Service Coverage Ratio, so the deal falls short on paper.
Property outside lender appetite
Each lender specialises in different sectors. Retail, office, industrial and mixed-use all carry different risk appetites and lender pools.
Business or tenant risk too high
Short leases, weak tenants or thin business accounts can trigger a decline even when the property itself is sound.
The wrong lender approached
Applying to a lender that does not cover the asset class, deal size or ownership structure is the most common cause of an avoidable decline.
Real example: mixed-use approved
A buyer was purchasing a mixed-use building, a retail unit with residential flats above. A standard buy-to-let lender had declined it because the commercial element took the property outside their criteria. The deal was strong, it had simply been placed with the wrong type of lender. We moved it to a specialist semi-commercial lender, aligned the income model with DSCR and positioned the deal correctly for the asset. It was approved.
Ready to finance your commercial property?
Send us the property and the figures. We match your deal to the right commercial lender from the start, whether it is investment, owner-occupied, mixed-use or a complex block.
Commercial deals are not standard, and should not be structured like they are.
Commercial finance questions
What is commercial property finance?
Commercial finance covers property used for business purposes, generating commercial income, or that falls outside standard residential lending criteria. That includes shops, offices, warehouses, mixed-use buildings and blocks beyond buy-to-let limits. Lenders assess income, risk and property type in more detail, so how the deal is structured matters as much as the numbers.
What is DSCR and how does it affect my deal?
Debt Service Coverage Ratio measures whether income covers the mortgage payment. A DSCR of 1.30x means income is 130 per cent of the payment. Commercial lenders commonly require around 1.30x, with 1.50x or more seen as strong, and secondary retail or leisure often needs more. A stronger ratio usually unlocks a better rate and a higher loan-to-value.
What deposit is required for commercial property?
Usually 25 to 35 per cent, since most commercial lending is capped around 65 to 75 per cent loan-to-value. Strong owner-occupiers can sometimes reach 75 to 80 per cent, needing as little as 20 to 25 per cent. Vacant, specialist or higher-risk properties typically need a larger deposit.
Can I buy commercial property through a limited company?
Yes, this is very common, often through a Special Purpose Vehicle set up to hold property, or via your trading company for owner-occupied premises. It can help with tax planning and succession, though every borrower’s circumstances differ, so take professional tax advice alongside the mortgage.
Is commercial lending more flexible than buy to let?
It is more bespoke rather than simply more flexible. Commercial mortgages are not standardised, so each lender has its own appetite for sectors, tenants, ownership and deal size. That means one lender’s decline is often another lender’s approval, which is exactly why matching the deal to the right lender from the start makes the difference.
What is a semi-commercial mortgage?
It funds a mixed-use property that is part commercial and part residential under one title, the classic example being a shop with flats above. It is assessed on the blended value and combined income, often sits between buy-to-let and full commercial criteria, and can achieve up to around 75 per cent loan-to-value with the right lender.
Let us talk through your options
Your first consultation is free and there is no obligation.
Albion Financial Advice provides regulated mortgage and insurance advice where applicable. Your home may be repossessed if you do not keep up repayments on your mortgage. Wills, estate planning and some forms of business and buy-to-let insurance are not regulated by the Financial Conduct Authority. Information on this page is general only and does not constitute financial advice.