How much deposit do I need for a commercial mortgage?
Plan on 20 to 30 percent if your business will occupy the property and 25 to 35 percent if you are buying it to let. Across the 45 commercial mortgage lenders on our panel the maximum loan-to-value is typically around 75%, with the range running from 60% to 100% on individual products (checked September 2026). The high-street banks sit at the cautious end, at 65 to 70 percent loan-to-value; the challenger banks go to 80 percent on owner-occupied premises.
The 100 percent figure you may have read about is real but narrow: a small number of banks lend the full purchase price to dental, veterinary, medical, accountancy and legal practices, because a registered professional with recurring fees is about as safe a borrower as commercial lending has. For everyone else, the deposit question is really a question about which lender, what the property is used for, and what else you can offer.
Deposit by type of purchase
Loan-to-value is the lender's term; deposit is yours. A 75 percent loan-to-value means a 25 percent deposit. The figures below are the general shape of the market as we see it on our panel; every lender sets its own.
| Purchase | Typical maximum LTV | Deposit | Notes |
|---|---|---|---|
| Owner-occupied trading premises | 70% to 80% | 20% to 30% | Challenger banks at the top of the range; high street at 65% to 70% |
| Commercial investment (let to a tenant) | 65% to 75% | 25% to 35% | Driven by tenant covenant and unexpired lease |
| Professional practice | Up to 100% with some lenders | 0% to 30% | Dental, vet, medical, accountancy, legal only |
| Semi-commercial (shop with flat above) | 65% to 75% | 25% to 35% | Priced on the commercial element; residential part must not be your home |
| Specialist use (pub, care home, petrol station) | Often 60% to 70% of going-concern value | 30% to 40% | Valued on the trading business as well as the bricks |
What moves the number
Four things, in the order lenders weigh them. The use of the property: offices and industrial units are mainstream, specialist uses are valued on the trading accounts and lent against more cautiously. The covenant: for an investment purchase, a tenant with strong accounts on a ten-year lease supports a higher loan than a start-up tenant with three years left. Your own accounts: for an owner-occupier, the lender sizes the loan on what the business can afford after paying for the building, and a thin profit means a bigger deposit whatever the valuation says. And additional security: a charge over another property, or a director's home used as collateral, can push the loan above 80 percent, at the cost of putting that asset in the deal.
What the panel says
Spans and counts are drawn from live products on our panel, checked in September 2026. They describe the products, not an offer to you.
- Maximum loan-to-value: from 60% to 100% across 460 products, typically around 75%.
- Annual rate at 70% LTV: 4.6% to 11.4%, median around 7.3%.
- 33 of 45 lenders lend on professional practices, the use where 100% lending exists.
- 21 lenders accept investors with no commercial landlord experience, usually at a lower loan-to-value than an experienced one would get.
Where the deposit can come from
Cash in the business is the simplest. A director's loan into the company is common and lenders accept it, provided it is documented and, usually, subordinated to their loan. Equity in another property can be used either by remortgaging it to raise cash or by offering it as additional security. A bridging loan is sometimes used to complete a purchase quickly and then refinanced onto a mortgage, but a bridge does not replace the deposit: the mortgage lender still wants its equity in the deal at refinance.
We introduce limited companies and LLPs to the commercial mortgage lenders whose loan-to-value, property use and covenant rules fit the purchase, and we say what deposit each realistically needs before anything is submitted. This page is general information, not advice.
Frequently asked questions
Can I get a commercial mortgage with a 10 percent deposit?
Rarely, and only with additional security or in the professional practice niche. For an ordinary trading business buying its premises, 20 percent is the practical floor with the challenger banks and most lenders want more.
Does the deposit have to be cash?
No. Equity in another property offered as additional security, or a documented director's loan, both work for most lenders. What lenders will not accept is a deposit that is itself borrowed unsecured and undisclosed; tell the lender where it comes from.
Is the deposit bigger for an investment property than for premises I will trade from?
Usually, by around five percentage points. An owner-occupier is underwritten on its own accounts and has a reason to keep paying; an investment relies on a tenant the lender does not control, so the lender keeps more equity in the deal.
Will a bridging loan cover the deposit?
It can fund the purchase itself for a short period, but when you refinance onto a term mortgage the mortgage lender still wants its deposit. Bridging solves timing, not equity.
Find out what deposit your purchase really needs
Tell us the property, whether you will occupy or let it, the price and what you can put in. We check it against lender loan-to-value rules and say which lenders fit.
Sources
Checked September 2026. Loan-to-value maxima are set product by product; the deposit on any purchase is decided by the lender's valuation and underwriting.
- CapExpand lender panel rate spans and criteria counts (broker platform extract, September 2026)
- CapExpand funding fact-check (June 2026): commercial mortgage loan-to-value and deposit ranges verified against Allica Bank, Barclays and Lloyds published criteria
- Allica Bank: commercial mortgages (owner-occupied lending up to 80% loan-to-value)
Important information
CapExpand Ltd is not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. We work with UK limited companies and LLPs only, for business and commercial purposes. We are not a lender and we do not provide financial, tax or legal advice. We do not arrange regulated residential mortgages, consumer buy-to-let mortgages or any other regulated mortgage contracts. We work with a panel of lenders whose particulars are available on request, and we receive commission from the lender if a deal completes, at no cost to you. All lending is subject to status, valuation where applicable and the lender's own checks.
Registered office: Pure Offices, Lake View Drive, Annesley, Nottingham, NG15 0DT. Company No. 14433858.
CapExpand Ltd (Company No. 14433858) is a commercial finance introducer, not a lender. We are not currently authorised or regulated by the Financial Conduct Authority and do not provide financial advice. All information on this page is for educational purposes only. Funding is subject to status and lender criteria. CapExpand will receive a commission from providers at no extra cost to you.