Commercial mortgage requirements come down to several factors including your deposit, how the property will be used, your trading history if it’s owner-occupied or the strength of the tenancy, and your business profile. Every lender assesses these core factors, but restrictions and limitations on how each is applied depends heavily on the lender type.
High-street banks typically have the tightest criteria and the lowest rates, while specialist and alternative lenders are more flexible on deposit, trading history and property type, usually at a higher cost.
Below, we cover what lenders assess, how banks and alternative lenders differ, and how Brickflow helps you find the lenders whose criteria your deal actually meets.
Commercial mortgage lenders assess key metrics including deposit size and LTV ratios, business trading history or landlord experience, property use and tenant strength, and comprehensive financial documentation.
Most lenders want a commercial mortgage deposit of 25–40%, which means borrowing at 60–75% loan-to-value (LTV). Deposit requirements depend on the property type and how keen the lender is on that particular kind of deal. For example, a standard office or retail unit with a strong tenant would typically require a smaller deposit than a specialist property.
If you’re buying premises for your own business, most lenders want two to three years of accounts. Newer businesses can still borrow, but expect closer scrutiny and the need for a stronger case elsewhere, such as a larger deposit or relevant industry experience.
If you’re buying to let, lenders focus less on trading history and more on your experience as a landlord, the rental income and the strength of the tenant. If investors are buying through a newly formed company with no accounts or trading history, lenders might assess the directors’ track record instead, or look for strongly related experience to support the application.
Lenders check what the property is and how it’ll be used. Offices, shops and industrial units have the widest choice of lenders, while specialist property such as care homes or petrol stations has fewer. The planning use class also needs to match the intended use, and many lenders won’t lend on a property that needs a change of use until planning permission is in place.
On investment deals, the tenant matters too. A long lease to a financially strong tenant (known as a strong ‘covenant’) widens your options, while short leases, break clauses and empty units narrow them. Our guide to commercial mortgage criteria covers how tenants and leases affect what you can borrow.
Expect to provide:
For more on how deposit and trading history fit into the wider process, see our guide to what a commercial mortgage is and how it works.
Banks vs alternative lenders for commercial mortgages is mainly a trade-off between price and flexibility.
High-street banks have the strictest commercial mortgage eligibility criteria. They typically want a longer trading history, a bigger deposit and a straightforward property, and decisions tend to be slower. In return, they offer the best rates to financially strong businesses with a solid track record.
Specialist and alternative lenders are more flexible. They're more willing to lend to newer businesses and on non-standard property, such as mixed-use buildings or premises needing work. Many will lend at a higher LTV, and decisions are usually faster. The trade-off is that rates are typically higher.
| Requirement | High-street banks | Specialist/alternative lenders |
|---|---|---|
| Trading history | Usually 2–3 years minimum | More open to newer businesses |
| LTV | Lower | Higher available |
| Property type | Standard property preferred | Comfortable with non-standard property |
| Speed | Slower | Faster |
| Rates | Lowest for strong borrowers | Typically higher |
Commercial mortgage terms vary between lenders, and so does their appetite. A lender that's keen on a property type this quarter may pull back next quarter, and most don't advertise these shifts. To compare commercial mortgage lenders effectively, check each lender's current criteria against your own deal, or use a platform that already holds that information. Approaching lenders one by one is slow, and each declined application costs you time.
The best commercial mortgage lender for your situation is the one whose criteria your deal actually meets, and that's hard to work out from lender websites alone.
Brickflow holds structured criteria across its commercial mortgage lender panel, including deposit, LTV and trading-history thresholds. Online platforms like Brickflow are useful for commercial mortgage research because they show you exactly which lenders are a realistic fit before you apply, so you're not guessing or making speculative approaches.
The practical next step is our commercial mortgage calculator. Enter your deal details to see which lenders in the market are a likely match for your deposit, trading history and property type.
Typically 25–40%, though this varies by lender and property type. Specialist lenders may lend at a higher LTV than high-street banks for the right deal.
If you’re buying premises for your own business, most lenders want two to three years of accounts, though some specialist and alternative lenders will consider newer businesses. If you don’t have any trading history lenders will typically look for strongly related experience to support the application. For investment property, lenders focus more on your landlord experience and the rental income.
Banks are generally stricter and slower, but offer the best rates to financially strong businesses. Alternative lenders are more flexible on trading history and property type, and usually faster, but typically charge more.
Checking each lender's criteria individually is slow. A platform that holds structured lender data, such as Brickflow, lets you filter for lenders that match your deposit, trading history and property type. It takes a matter of seconds to enter your property details into our commercial mortgage calculator and compare like for like results based on your actual deal.