What is the maximum Loan-to-Value (LTV) for a commercial mortgage?

Standard commercial mortgages typically offer up to 75% LTV for both owner-occupiers and commercial investments. However, higher leverage is available for specific scenarios: - Up to 90% LTV for sitting tenants purchasing their own trading premises (e.g., pub sitting tenant acquisitions). - Up to 80% LTV for prime corporate covenants and strong Tier-1 business profiles in select sectors. - Up to 75% LTV standard for all other commercial trading and investment requirements.

What is the difference between an owner-occupier and a commercial investment mortgage?

An owner-occupier mortgage is for purchasing or refinancing premises your own trading business operates from. A commercial investment mortgage is for properties let to third-party commercial tenants to generate rental yield.

Can I get a commercial mortgage if my business has complex or variable profits?

Yes. As commercial brokers, we work with specialist lenders who look beyond automated credit scoring to evaluate EBITDA, adjusted net profits, and future trading projections.

What is the difference between Vacant Possession (VP) and Going Concern valuation?

Vacant Possession looks at the property as an empty building. Going Concern valuation also considers the trading business, EBITDA, goodwill, fixtures and operational performance, which can materially increase value for pubs, hotels, care homes and similar assets.

Can I buy a semi-commercial property if I only want to occupy the shop and let the flats?

Yes, subject to lease, title and lender criteria. The lender will split the assessment between the commercial unit you occupy and the residential units you let, then decide whether the case fits owner-occupied, semi-commercial or mixed-use investment pricing.

How does Option to Tax (VAT) affect commercial property purchases?

If the seller has opted to tax, VAT can become payable on the commercial element. That changes completion cashflow, SDLT calculations and whether specialist VAT bridging is needed. Always confirm the VAT position with your solicitor and tax adviser before exchange.

What is an Intercompany Loan and can my trading company fund a commercial property deposit?

An intercompany loan is a documented loan between corporate entities, such as an OpCo lending deposit funds to a PropCo. Some commercial lenders accept this route when the funds, minutes and loan agreement are clean, but the structure needs accounting and tax advice.

Acorn Commercial Desk · Full & Semi-Commercial Finance

Commercial Mortgages: Own Your Premises or Build a High-Yield Portfolio

Bespoke property finance for Owner-Occupiers, Commercial Landlords, and Mixed-Use Developers. Whole-of-market access to 575+ specialist lenders and private banks.

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Calculate Commercial DSCR & Payments

The 4 commercial funding quadrants

Match the facility to the property, occupant and valuation method

Owner-occupiers, investors, mixed-use buyers and trading businesses are underwritten differently — the right quadrant changes LTV, repayment model and evidence.

STOP PAYING RENT

Owner-Occupied Commercial Mortgages

Trading businesses buying their own operational premises: offices, warehouses, factories and trade counters.

Up to 75% standard; up to 80% for prime corporate covenants and strong Tier-1 profiles in select sectors
Terms 5–30 years
Mortgage interest is a 100% tax-deductible business expense
Beats high-street rent costs

TENANTED ASSETS

Commercial Investment / Commercial BTL

Property investors purchasing or refinancing tenanted commercial assets for long-term rental yield.

Up to 75% LTV
Assessed on tenant covenant strength and lease length
Debt Service Coverage Ratio (DSCR) stress testing
Personal or SPV Ltd Co.

RESI + COMMERCIAL

Semi-Commercial & Mixed-Use Properties

High-street shops with flats above, pub-to-residential conversions or multi-use business parks.

Resi-weighted semi-commercial accepted up to 80% LTV
Access to residential BTL rates if residential value exceeds 50%
Class MA Permitted Development upside

ASSET + TRADING PROFIT

Going Concern & Trading Business Premises

Pubs, boutique hotels, care homes, dental or GP surgeries and nurseries.

Valued on Going Concern / EBITDA rather than just Vacant Possession
Up to 90% LTV for sitting tenants purchasing their own trading premises

Specialist industry desks

Sector cards for complex commercial assets

Filter by sector to see the commercial desks Acorn packages for lender appetite, valuation type and income evidence.

Hospitality & Licensed Trade

Pub freeholds, Pub90 tenant buyouts, bars and micro-breweries.

Hotels & Guest Houses

Boutique city hotels, coastal B&Bs and serviced accommodation.

Healthcare & Medical

Elderly and under-65 care homes, dental practices, GP surgeries, pharmacies and veterinary clinics.

Industrial & Warehousing

Light industrial units, distribution hubs, dark kitchens and trade counters.

High Street Retail & Showrooms

Retail premises, car showrooms and mixed-use high-street blocks.

Professional Offices & Business Parks

Corporate HQs, co-working spaces and tech hubs.

Showing 6 of 6 specialist desks.

Interactive commercial mortgage estimator

Commercial DSCR and payment check

Stress-test the proposed facility against annual rental or trading income before packaging the case.

Property / business value£750,000

£100,000£5,000,000

Loan amount required / deposit£525,000 loan · £225,000 deposit

£50,000£750,000

Property type

Annual net rental / trading income£95,000

£10,000£500,000

Live DSCR result

Commercial investment proposal

Commercial DSCR calculator results
Estimated LTV	70.0%
Indicative monthly mortgage repayment	£3,880
Debt Service Coverage Ratio	2.04x

Strong Coverage
DSCR is above 1.25x on this indicative repayment profile.

Submit Proposal for Pre-Approval

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Indicative illustration only. Repayment is modelled on a simple capital-and-interest basis and excludes fees, interest-only options, valuation adjustments, lender covenants and tax advice.

Important Tax & Financial Advice Notice

Acorn.finance is a specialist credit broker authorised and regulated by the FCA, not a tax advisory firm or accountant. Commercial property transactions, OpCo/PropCo group transfers, Capital Allowances, Option to Tax (VAT on commercial property), and Corporation Tax implications vary significantly based on your corporate structure. The information on this page is designed to highlight key structural considerations so you can lead an informed discussion with your qualified accountant or chartered tax specialist.

Knowledge banners & child guide links

Go deeper on specialist commercial property finance

Explore sector-specific desks and adjacent acquisition strategies.

Pub90: Freehold Buyouts for Sitting Tenants

Structured funding for pub tenants buying the freehold they already operate.

Open guide

London Commercial Property Desk

Own your business premises in the capital with specialist commercial underwriting.

Open guide

The 'Worst House' Derelict Refurb Hub

Acquire, refurbish and refinance distressed commercial or mixed-use opportunities.

Open guide

Commercial Buy-to-Let Mortgages

Long-term finance for tenanted commercial investment property.

Open guide

Commercial & Property Debt

0207 959 3882 www.acorn.finance info@acorn.finance

Document preparation

Commercial Mortgage Document Checklist

Owner-Occupier & Commercial Investment

Document requirements vary by lender and circumstances. Collected documents are not uploaded or verified here.

Last 3 Years Certified Accounts / Audited Financial Statements
Lender notes
Full accounts help lenders assess sustainable profits. Include notes and certification; explain exceptional costs and provide recent management figures if requested.
Full accounts help lenders assess sustainable profits. Include notes and certification; explain exceptional costs and provide recent management figures if requested.
6 Months Business Bank Statements (PDF downloads)
Lender notes
Download consecutive full statements from online banking. Lenders reconcile turnover and repayments; include all pages, not screenshots.
Download consecutive full statements from online banking. Lenders reconcile turnover and repayments; include all pages, not screenshots.
Statement of Assets & Liabilities (for all key directors/shareholders)
Lender notes
This shows personal financial commitments and net assets. Include secured and unsecured debts and keep valuations realistic and up to date.
This shows personal financial commitments and net assets. Include secured and unsecured debts and keep valuations realistic and up to date.
Lease Agreement & Rent Roll (if Commercial Investment) or Projections (if Owner-Occupier)
Lender notes
Leases support rental security; projections support trading affordability. Include lease expiry, break clauses and assumptions, with evidence for forecasts.
Leases support rental security; projections support trading affordability. Include lease expiry, break clauses and assumptions, with evidence for forecasts.
Proof of Deposit / Equity Source
Lender notes
Provide a clear trail of savings, asset sales or equity release. A balance alone may not establish source of funds; gifts need supporting evidence.
Provide a clear trail of savings, asset sales or equity release. A balance alone may not establish source of funds; gifts need supporting evidence.
Schedule of Existing Commercial Debts / Liabilities
Lender notes
List lenders, balances, repayments, security and expiry dates. Include overdrafts, leases and guarantees so commitments reconcile with statements.
List lenders, balances, repayments, security and expiry dates. Include overdrafts, leases and guarantees so commitments reconcile with statements.

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Commercial mortgage FAQs

Answers for business owners and commercial investors

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