--- title: "Business Property Mortgage Calculator UK 2026 — LTV, DSCR & Rates | First Rung Now" description: "UK business property mortgage calculator 2026: how to size commercial loans using LTV, DSCR, accounts and rental coverage with worked examples." lang: en-GB json-ld: | [ { "@context": "https://schema.org", "@type": "Organization", "name": "First Rung Now", "url": "https://firstrungnow.com", "description": "Independent UK mortgage education and broker matching service.", "address": { "@type": "PostalAddress", "addressCountry": "GB" } }, { "@context": "https://schema.org", "@type": "WebSite", "name": "First Rung Now", "url": "https://firstrungnow.com" }, { "@context": "https://schema.org", "@type": "Article", "headline": "Business Property Mortgage Calculator", "description": "UK business property mortgage calculator 2026: how to size commercial loans using LTV, DSCR, accounts and rental coverage with worked examples.", "author": { "@type": "Organization", "name": "First Rung Now" }, "publisher": { "@type": "Organization", "name": "First Rung Now", "url": "https://firstrungnow.com" }, "mainEntityOfPage": "https://firstrungnow.com/business-property-mortgage-calculator", "datePublished": "2026-06-15", "dateModified": "2026-06-15", "inLanguage": "en-GB" }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://firstrungnow.com/" }, { "@type": "ListItem", "position": 2, "name": "Calculators", "item": "https://firstrungnow.com/mortgage-calculators" }, { "@type": "ListItem", "position": 3, "name": "Business Property Mortgage Calculator", "item": "https://firstrungnow.com/business-property-mortgage-calculator" } ] }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "How is a business property mortgage calculated?", "acceptedAnswer": { "@type": "Answer", "text": "Commercial property lenders combine three tests: LTV (typically max 65%–75%), Debt Service Coverage Ratio (DSCR — net operating income ≥ 125%–150% of debt service), and affordability against company accounts. The lowest of the three sets your maximum loan." } }, { "@type": "Question", "name": "What deposit do I need for a commercial property mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "25%–40% of the property value. Owner-occupier commercial mortgages can go to 70%–75% LTV; pure investment commercial typically caps at 65%–70% LTV. Specialist sectors (care homes, petrol stations, hotels) require larger deposits." } }, { "@type": "Question", "name": "What are commercial mortgage rates in 2026?", "acceptedAnswer": { "@type": "Answer", "text": "Typical 65% LTV commercial mortgages price at 6.50%–8.50% in 2026. The rate is usually quoted as a margin over Bank of England base rate or SONIA. Fixed terms are 3, 5 or 10 years. Variable products also widely available." } }, { "@type": "Question", "name": "Which lenders offer commercial property mortgages?", "acceptedAnswer": { "@type": "Answer", "text": "Allica Bank, Cambridge & Counties Bank, Shawbrook, OakNorth, Together Money, InterBay, Aldermore, Lloyds Commercial, NatWest Commercial, HSBC Commercial, and specialist sector lenders for hospitality, healthcare and retail." } }, { "@type": "Question", "name": "Can I borrow against future rental income?", "acceptedAnswer": { "@type": "Answer", "text": "Yes for investment commercial. The lender uses contracted or projected rental income to calculate DSCR. Strong, long, established leases command better terms than short tenancies or vacant property." } }, { "@type": "Question", "name": "Is a commercial mortgage faster or slower than residential?", "acceptedAnswer": { "@type": "Answer", "text": "Slower. Commercial valuations take 2–4 weeks, underwriting requires 2–3 years of accounts, and legal work is more complex (commercial leases, environmental searches, planning). Typical timeline: 8–14 weeks from application to completion." } } ] } ] --- [Skip to content](#main) [![First Rung Now](/assets/logo-mark-BqLOgqvj.png) First Rung Now UK Mortgage Guides ](/) - Mortgages - Remortgages - Buy To Let - Bad Credit - Calculators - Guides - [Find a Broker](/find-a-mortgage-broker) - [About](/about) [Speak to a Vetted Broker](/find-a-mortgage-broker) 1. [Home](/) 2. [Calculators](/mortgage-calculators) 3. Business Property Mortgage Calculator UK Mortgage Guide # Business Property Mortgage Calculator: UK Commercial 2026 Sizing a UK commercial property mortgage is fundamentally different to a residential calculation. The lender stress-tests three things — loan-to-value, debt service coverage, and company affordability — and lends only as much as the lowest of the three allows. This guide explains exactly how commercial lenders calculate your maximum loan in 2026, with worked examples for owner-occupier and investment commercial property, plus the UK lender panel you can approach. First Rung Now Editorial Updated 15 June 2026 7 min read On this page 1. [Key takeaways](#key-takeaways) 2. [The three tests that decide your commercial loan](#the-three-tests-that-decide-your-commercial-loan) 3. [Worked owner-occupier example](#worked-owner-occupier-example) 4. [Worked investment commercial example](#worked-investment-commercial-example) 5. [Speak with a vetted mortgage broker about commercial property mortgages including owner-occupier and investment commercial](#speak-with-a-vetted-mortgage-broker-about-commercial-property-mortgages-including-owner-occupier-and-investment-commercial) 6. [UK commercial mortgage lenders in 2026](#uk-commercial-mortgage-lenders-in-2026) 7. [Sectors and their lender appetite](#sectors-and-their-lender-appetite) 8. [Costs and timeline](#costs-and-timeline) 9. [Pros](#pros) 10. [Cons](#cons) 11. [Frequently asked questions](#frequently-asked-questions) 12. [How is a business property mortgage calculated?](#how-is-a-business-property-mortgage-calculated) 13. [What deposit do I need for a commercial property mortgage?](#what-deposit-do-i-need-for-a-commercial-property-mortgage) 14. [What are commercial mortgage rates in 2026?](#what-are-commercial-mortgage-rates-in-2026) 15. [Which lenders offer commercial property mortgages?](#which-lenders-offer-commercial-property-mortgages) 16. [Can I borrow against future rental income?](#can-i-borrow-against-future-rental-income) 17. [Is a commercial mortgage faster or slower than residential?](#is-a-commercial-mortgage-faster-or-slower-than-residential) 18. [Related guides](#related-guides) 19. [Commercial Mortgage Requirements](#commercial-mortgage-requirements) 20. [Limited Company Mortgage Rates](#limited-company-mortgage-rates) 21. [Limited Company Mortgage Calculator](#limited-company-mortgage-calculator) ### Calculators — related reads Interactive tools for borrowers and landlords. - [BTL interest-only calculator Stress-test ICR at 125%–145% and 5.5%–7% to find your maximum BTL loan. ](/buy-to-let-interest-only-calculator) - [HMO mortgage calculator Size your HMO loan using room rents, ICR and stressed interest rates. ](/hmo-mortgage-calculator) - [RIO mortgage calculator Estimate maximum RIO loan and lifetime interest using property value, LTV and rate. ](/retirement-interest-only-mortgage-calculator) - [JBSP mortgage calculator Combined-income affordability when a parent supports the mortgage but stays off the title. ](/jbsp-mortgage-calculator) - [Mortgage buyout calculator Work out equity split, affordability and SDLT on a divorce or separation buyout. ](/mortgage-buyout-calculator-uk) Explore the hubs [Mortgages explained](/mortgages)[Remortgages](/remortgages)[Buy-to-let mortgages](/buy-to-let)[Bad credit mortgages](/bad-credit-mortgages)[Mortgage calculators](/mortgage-calculators)[All mortgage guides](/mortgage-guides)[Find a mortgage broker](/find-a-mortgage-broker) ## Key takeaways - Commercial loans capped by the lowest of LTV, DSCR, and company affordability. - Owner-occupier commercial: max 70%–75% LTV. Investment: max 65%–70% LTV. - DSCR requirement: 125%–150% of debt service. - 2026 rate range at 65% LTV: 6.50%–8.50% on 3–5 year terms. - Timeline: 8–14 weeks application to completion. ## The three tests that decide your commercial loan Want a vetted broker to help with The three tests that decide your commercial loan? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) 1. **LTV (loan-to-value):** commercial property valuations are typically below residential equivalents on a per-square-foot basis. The lender's surveyor sets the valuation — your purchase price is not necessarily the lending value. 2. **DSCR (debt service coverage ratio):** Net Operating Income (NOI) divided by annual mortgage payments. Most lenders want DSCR ≥ 1.25 (125%) for owner-occupier, ≥ 1.40 (140%) for investment. 3. **Company affordability:** 2–3 years of filed accounts. Net profit (EBITDA) must comfortably cover debt service plus existing commitments. ## Worked owner-occupier example Calculators · keep reading - [BTL interest-only calculator Stress-test ICR at 125%–145% and 5.5%–7% to find your maximum BTL loan. ](/buy-to-let-interest-only-calculator) - [HMO mortgage calculator Size your HMO loan using room rents, ICR and stressed interest rates. ](/hmo-mortgage-calculator) Browse the full hub: [Mortgage calculators](/mortgage-calculators) Want a vetted broker to help with Worked owner-occupier example? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) A trading company buying its premises: - Property: £600,000 (lender valuation £580,000). - Company EBITDA: £180,000/year. - Existing rent paid: £42,000/year (will be saved post-purchase). - Loan rate: 7.5% over 20 years. LTV test: 75% × £580,000 = £435,000 max. DSCR test: annual debt service on £435,000 at 7.5% over 20 years = ~£42,070. Available NOI = £180k EBITDA + £42k rent saving = £222k. DSCR = £222k ÷ £42k = 5.3 — passes easily. Affordability test: Net profit covers debt service many times over — passes. Maximum loan: £435,000 (LTV-driven). Deposit needed: £165,000. ## Worked investment commercial example Want a vetted broker to help with Worked investment commercial example? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) Buying a commercial unit to lease out: - Property: £450,000. - Annual rent (existing 10-year FRI lease): £36,000. - Loan rate: 7.0%, 20-year amortising. LTV test: 65% × £450k = £292,500 max. DSCR test at 140%: max debt service = £36,000 ÷ 1.40 = £25,714/year. At 7% over 20 years that's a max loan of ~£275,000. Lower of LTV and DSCR: £275,000. Deposit needed: £175,000. Vetted UK Broker Match ### Speak with a vetted mortgage broker about commercial property mortgages including owner-occupier and investment commercial Free, no-obligation introduction to an FCA-regulated adviser with experience in your specific scenario. We've done the due diligence so you don't have to. - FCA-regulated only - Typical reply in 1 working day - No upfront fees [Match me with a broker](/find-a-mortgage-broker) ## UK commercial mortgage lenders in 2026 Calculators · keep reading - [RIO mortgage calculator Estimate maximum RIO loan and lifetime interest using property value, LTV and rate. ](/retirement-interest-only-mortgage-calculator) - [JBSP mortgage calculator Combined-income affordability when a parent supports the mortgage but stays off the title. ](/jbsp-mortgage-calculator) Browse the full hub: [Mortgage calculators](/mortgage-calculators) Want a vetted broker to help with UK commercial mortgage lenders in 2026? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) - **Allica Bank** — owner-occupier specialist; sharp on trading SMEs. - **Cambridge & Counties Bank** — strong on professional and trading borrowers. - **Shawbrook** — broad commercial including HMO and semi-commercial. - **OakNorth** — tech-enabled, sharp on £500k–£10m loans. - **Together Money** — flexible criteria, higher rate. - **InterBay** — semi-commercial and pure commercial. - **Aldermore** — commercial owner-occupier and investment. - **Lloyds / NatWest / HSBC Commercial** — large bank desks for established businesses. - **Hampshire Trust Bank** — challenger commercial. - **Sector specialists** (Metro Bank for hospitality, healthcare-specific lenders). ## Sectors and their lender appetite Want a vetted broker to help with Sectors and their lender appetite? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) - **Offices, light industrial, retail (high street):** well-served, mainstream pricing. - **Warehouses, distribution, trade counters:** strong appetite, often best rates. - **Pubs and restaurants:** sector specialists only; rate premium 0.50%–1.00%. - **Hotels and B&Bs:** sector specialists; 60% LTV typical. - **Care homes:** sector specialists; CQC rating dependency. - **Petrol stations:** niche; environmental considerations. - **Mixed-use / semi-commercial:** Shawbrook, InterBay specialise. ## Costs and timeline Calculators · keep reading - [Mortgage buyout calculator Work out equity split, affordability and SDLT on a divorce or separation buyout. ](/mortgage-buyout-calculator-uk) - [Ltd company mortgage calculator ICR-driven max SPV BTL loan with worked 2026 examples. ](/ltd-company-mortgage-calculator) Browse the full hub: [Mortgage calculators](/mortgage-calculators) Want a vetted broker to help with Costs and timeline? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) - Arrangement fee: 1.5%–2% of loan, added to balance or paid upfront. - Commercial valuation: £1,500–£5,000+ depending on property type and size. - Legal fees: £2,500–£7,500 (commercial conveyancing). - Survey: dilapidations and condition surveys often required. - Timeline: 8–14 weeks application to completion. ### Pros - Own your business premises and stop paying rent. - Capital appreciation belongs to the business. - Rental income from investment commercial can be strong. - Multiple UK lenders compete for SME commercial business. - Interest is fully deductible against business profit. ### Cons - Larger deposits (25%–40%) than residential. - Rates 1.5%–3% above residential equivalent LTV. - Three-test sizing — easy to under-borrow on DSCR. - Longer, more expensive legal and valuation process. - Specialist sectors face narrower lender pools and pricing premiums. ## Frequently asked questions ### How is a business property mortgage calculated? ### What deposit do I need for a commercial property mortgage? ### What are commercial mortgage rates in 2026? ### Which lenders offer commercial property mortgages? ### Can I borrow against future rental income? ### Is a commercial mortgage faster or slower than residential? ## Related guides [ ### Commercial Mortgage Requirements Full commercial mortgage criteria. Read guide ](/commercial-mortgage-requirements)[ ### Limited Company Mortgage Rates Company-held residential property. Read guide ](/residential-limited-company-mortgage-rates)[ ### Limited Company Mortgage Calculator SPV BTL sizing. Read guide ](/ltd-company-mortgage-calculator) First Rung Now Independent UK mortgage education and broker matching. We don't sell mortgages — we help you understand them, then connect you with vetted advisers. 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