--- title: "Commercial Mortgage Requirements UK 2026 — Deposit, DSCR & Lenders | First Rung Now" description: "UK commercial mortgage requirements 2026: deposit, DSCR, personal guarantees, accounts, sectors, lenders and complete application checklist." 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": "Commercial Mortgage Requirements", "description": "UK commercial mortgage requirements 2026: deposit, DSCR, personal guarantees, accounts, sectors, lenders and complete application checklist.", "author": { "@type": "Organization", "name": "First Rung Now" }, "publisher": { "@type": "Organization", "name": "First Rung Now", "url": "https://firstrungnow.com" }, "mainEntityOfPage": "https://firstrungnow.com/commercial-mortgage-requirements", "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": "Commercial Mortgage Requirements", "item": "https://firstrungnow.com/commercial-mortgage-requirements" } ] }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "What are the requirements for a UK commercial mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "UK commercial mortgages require: 25%–40% deposit, 2–3 years of company accounts, DSCR (Debt Service Coverage Ratio) of 1.25–1.40+, satisfactory company credit, personal guarantees from directors, business plan for owner-occupier cases, and a property that meets the lender's acceptable use class." } }, { "@type": "Question", "name": "What's the minimum deposit for a commercial mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "Owner-occupier commercial: 25%–30% (max 70%–75% LTV). Investment commercial: 30%–35% (max 65%–70% LTV). Specialist sectors (care homes, petrol stations, hotels): 35%–40% (max 60%–65% LTV)." } }, { "@type": "Question", "name": "Do commercial mortgages need personal guarantees?", "acceptedAnswer": { "@type": "Answer", "text": "Almost always yes. Even where the borrower is a limited company, lenders require personal guarantees from directors with 20%+ shareholding. PGs are commonly capped at 20%–25% of the loan rather than the full balance." } }, { "@type": "Question", "name": "How long does commercial mortgage approval take?", "acceptedAnswer": { "@type": "Answer", "text": "8–14 weeks from application to completion. Commercial valuations alone take 2–4 weeks (vs 1 week for residential), and legal work is more complex due to commercial leases, environmental searches and planning compliance." } }, { "@type": "Question", "name": "Can a start-up business get a commercial mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "Very difficult. Most lenders require 2–3 years of trading accounts. Start-ups may access commercial finance via: (a) personal guarantees backed by strong personal wealth; (b) commercial bridging loans (short-term, high rate); (c) accelerator/SME-focused lenders like Allica, Cambridge & Counties." } }, { "@type": "Question", "name": "What property types are acceptable for commercial mortgages?", "acceptedAnswer": { "@type": "Answer", "text": "Standard: offices, light industrial, retail, warehousing, distribution. Acceptable with specialism: pubs, restaurants, hotels, B&Bs, care homes, healthcare, petrol stations. Difficult: contaminated land, listed buildings in poor repair, very specialist single-purpose buildings." } } ] } ] --- [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. Commercial Mortgage Requirements UK Mortgage Guide # Commercial Mortgage Requirements UK 2026: Full Criteria Guide UK commercial mortgages have stricter criteria than residential lending — bigger deposits, longer underwriting, personal guarantees and three parallel affordability tests. Getting it right starts with understanding exactly what UK commercial lenders need in 2026, why they need it, and how to present your business case for the best terms. This guide is the complete commercial mortgage requirements checklist. First Rung Now Editorial Updated 15 June 2026 7 min read On this page 1. [Key takeaways](#key-takeaways) 2. [The five core requirements](#the-five-core-requirements) 3. [Detailed deposit and LTV requirements](#detailed-deposit-and-ltv-requirements) 4. [Speak with a vetted mortgage broker about commercial mortgage requirements and matching your business case to the right UK commercial lender](#speak-with-a-vetted-mortgage-broker-about-commercial-mortgage-requirements-and-matching-your-business-case-to-the-right-uk-commercial-lender) 5. [Financial documentation needed](#financial-documentation-needed) 6. [Business plan for owner-occupier cases](#business-plan-for-owner-occupier-cases) 7. [Property due diligence](#property-due-diligence) 8. [Lease structure (investment commercial)](#lease-structure-investment-commercial) 9. [Rate landscape 2026](#rate-landscape-2026) 10. [UK commercial mortgage lenders](#uk-commercial-mortgage-lenders) 11. [Pros](#pros) 12. [Cons](#cons) 13. [Frequently asked questions](#frequently-asked-questions) 14. [What are the requirements for a UK commercial mortgage?](#what-are-the-requirements-for-a-uk-commercial-mortgage) 15. [What's the minimum deposit for a commercial mortgage?](#whats-the-minimum-deposit-for-a-commercial-mortgage) 16. [Do commercial mortgages need personal guarantees?](#do-commercial-mortgages-need-personal-guarantees) 17. [How long does commercial mortgage approval take?](#how-long-does-commercial-mortgage-approval-take) 18. [Can a start-up business get a commercial mortgage?](#can-a-start-up-business-get-a-commercial-mortgage) 19. [What property types are acceptable for commercial mortgages?](#what-property-types-are-acceptable-for-commercial-mortgages) 20. [Related guides](#related-guides) 21. [Business Property Mortgage Calculator](#business-property-mortgage-calculator) 22. [Limited Company Mortgage Rates](#limited-company-mortgage-rates) 23. [Limited Company Mortgage Calculator](#limited-company-mortgage-calculator) ### Buy-to-let — related reads Landlord mortgages, HMOs, holiday lets and SPVs. - [Best HMO mortgage lenders Who actually competes for HMO mortgages in the UK right now. ](/best-hmo-mortgage-lenders) - [BTL houses in Sheffield Financing BTL houses across Sheffield postcodes, yields and HMO rules. ](/buy-to-let-houses-sheffield-mortgage) - [Holiday let mortgages Which UK lenders price holiday lets sharpest and how rental coverage works. ](/holiday-let-mortgages-best-rates) - [Limited company BTL misconceptions The truth about Section 24, SPVs and personal-name landlords in 2026. ](/landlord-misconceptions-limited-company-btl) - [Let-to-buy providers Which UK lenders handle let-to-buy and how the two-mortgage structure fits together. ](/let-to-buy-mortgage-providers) 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 - Deposit: 25%–40% depending on owner-occupier vs investment and sector. - DSCR: 125%–140% of debt service required. - 2–3 years filed company accounts standard. - Personal guarantees from directors typically required. - Timeline: 8–14 weeks application to completion. ## The five core requirements Want a vetted broker to help with The five core requirements? 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. **Deposit / LTV:** 25%–40% of property value as deposit. 2. **Company financials:** 2–3 years filed accounts showing profitability. 3. **DSCR test:** Net Operating Income covers 125%–140%+ of annual debt service. 4. **Personal guarantees:** from directors with 20%+ shareholding. 5. **Property suitability:** use class, condition, environmental status, lease structure (if investment). ## Detailed deposit and LTV requirements Buy-to-let · keep reading - [Best HMO mortgage lenders Who actually competes for HMO mortgages in the UK right now. ](/best-hmo-mortgage-lenders) - [BTL houses in Sheffield Financing BTL houses across Sheffield postcodes, yields and HMO rules. ](/buy-to-let-houses-sheffield-mortgage) Browse the full hub: [Buy-to-let mortgages](/buy-to-let) Want a vetted broker to help with Detailed deposit and LTV requirements? 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) Property type Max LTV Min deposit Offices, light industrial, warehouses 70%–75% 25%–30% High street retail 65%–70% 30%–35% Pubs, restaurants 60%–65% 35%–40% Hotels, B&Bs 60%–65% 35%–40% Care homes 60%–70% 30%–40% HMO/semi-commercial 70%–75% 25%–30% Vetted UK Broker Match ### Speak with a vetted mortgage broker about commercial mortgage requirements and matching your business case to the right UK commercial lender 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) ## Financial documentation needed Want a vetted broker to help with Financial documentation needed? 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) - Last 2–3 years' filed company accounts. - Last 12 months' management accounts. - Last 6 months' business bank statements. - VAT returns (most recent quarter). - Aged debtor/creditor reports. - Director CVs and ownership structure. - Personal bank statements for guarantors (3–6 months). - Personal asset and liability statements. ## Business plan for owner-occupier cases Buy-to-let · keep reading - [Holiday let mortgages Which UK lenders price holiday lets sharpest and how rental coverage works. ](/holiday-let-mortgages-best-rates) - [Limited company BTL misconceptions The truth about Section 24, SPVs and personal-name landlords in 2026. ](/landlord-misconceptions-limited-company-btl) Browse the full hub: [Buy-to-let mortgages](/buy-to-let) Want a vetted broker to help with Business plan for owner-occupier cases? 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) If you're buying premises for your business to occupy, the lender wants a business plan covering: - Why you're buying (vs continuing to rent). - Existing trading position and forecasts. - How the property fits operational needs. - Rent saving vs new mortgage cost. - Sensitivity analysis (revenue down 20%, can you still service debt?). ## Property due diligence Want a vetted broker to help with Property due diligence? 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) - **Valuation:** commercial RICS valuation by lender-approved surveyor (£1,500–£5,000+). - **Environmental search:** contamination history check (Phase 1 environmental report often required). - **Planning compliance:** confirmation property has valid permitted use and any extensions are properly consented. - **Energy Performance Certificate:** minimum E rating for letting (MEES regulations). - **Asbestos register:** for commercial properties built pre-2000. - **Fire risk assessment:** commercial properties must comply with RRO 2005. ## Lease structure (investment commercial) Buy-to-let · keep reading - [Let-to-buy providers Which UK lenders handle let-to-buy and how the two-mortgage structure fits together. ](/let-to-buy-mortgage-providers) - [Buying a second property to rent out Deposit, BTL mortgage, stamp duty and yield expectations for first-time landlords. ](/buying-a-second-property-to-rent-out) Browse the full hub: [Buy-to-let mortgages](/buy-to-let) Want a vetted broker to help with Lease structure (investment commercial)? 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) For investment commercial purchases, lender scrutinises: - Lease length remaining (5+ years preferred). - Rent review structure (upward-only preferred). - Tenant covenant strength (rated companies preferred). - FRI (Full Repairing and Insuring) lease vs IRI vs Internal-only. - Break clauses and how they affect rental certainty. ## Rate landscape 2026 Want a vetted broker to help with Rate landscape 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) - 65% LTV owner-occupier office/industrial: 6.50%–7.50% on a 5-year fix. - 65% LTV investment commercial: 7.00%–8.00%. - Specialist sectors: 7.50%–8.50%+. - Commercial bridging: 0.55%–0.85%/month (6.6%–10.2% annualised). - Arrangement fee: 1.5%–2% of loan, usually addable to balance. ## UK commercial mortgage lenders Buy-to-let · keep reading - [85% LTV BTL mortgages Specialist BTL lenders at 85% LTV, rates and rental coverage. ](/85-loan-to-value-buy-to-let-mortgages) - [HMO mortgage rates UK 2026 HMO mortgage pricing by lender, LTV and licensing status. ](/hmo-mortgage-rates-uk) Browse the full hub: [Buy-to-let mortgages](/buy-to-let) Want a vetted broker to help with UK commercial mortgage lenders? 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, Cambridge & Counties Bank, Shawbrook, OakNorth. - Together Money, InterBay, Aldermore, Hampshire Trust Bank. - Lloyds Commercial, NatWest Commercial, HSBC Commercial Banking. - Specialists: Metro Bank (hospitality), Castle Trust (refurb), United Trust Bank. ### Pros - Multiple UK lenders compete for commercial business. - Owner-occupier commercial gives long-term cost certainty vs rent. - Interest fully deductible against business profit. - Capital appreciation belongs to the business. - Rental income from investment commercial can be strong. ### Cons - Deposit requirements 25%–40%. - Personal guarantees almost always required. - Underwriting timeline 8–14 weeks. - Commercial valuation and legal costs significant. - Start-ups face very limited lender appetite. ## Frequently asked questions ### What are the requirements for a UK commercial mortgage? ### What's the minimum deposit for a commercial mortgage? ### Do commercial mortgages need personal guarantees? ### How long does commercial mortgage approval take? ### Can a start-up business get a commercial mortgage? ### What property types are acceptable for commercial mortgages? ## Related guides [ ### Business Property Mortgage Calculator Size your commercial loan. Read guide ](/business-property-mortgage-calculator)[ ### 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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