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Structured for deals that do not fit the standard box
Commercial finance is assessed very differently from residential or buy-to-let. Income, risk and property type all matter, and the structure of the deal is as important as the numbers. Had a deal declined? The issue is often how it was presented, not the deal itself.
What is commercial property finance?
Commercial finance covers property used for business purposes, generating commercial income, or that falls outside standard residential lending criteria, including shops, offices, warehouses, mixed-use buildings, and blocks beyond buy-to-let limits.
Key difference from buy-to-let:
Lenders assess income, risk and property type in more detail, which means how the deal is structured matters as much as the numbers themselves.This page is for you if:
Commercial underwriting looks at the whole picture, not just the numbers
60 to 75%
Typical LTV
110 to 140%
DSCR required
5 factors
Assessed together
Why commercial deals get declined
Most declines happen because the deal is not structured or presented correctly, not because the asset is fundamentally un-financeable. The right lender, matched to the right deal, makes the difference.
Income does not meet lender expectations
Commercial lenders use DSCR, and many applicants do not understand how their income will be assessed against this measure.
Property type outside lender appetite
Each commercial lender specialises in different sectors. Retail, office, industrial and mixed-use all attract different lenders with different risk appetites.
Business or tenant risk too high
Short leases, weak tenants, or a business with thin accounts can trigger a decline, even when the property itself is sound.
Incorrect deal structure
Ownership (personal vs limited company), leverage and repayment strategy all need to align with the lender's criteria from the start.
No clear repayment or exit strategy
Unlike residential, commercial lenders want to understand how the loan will be repaid, particularly on transitional assets.
Wrong lender approached
Applying to a lender that does not cover the asset class, deal size or ownership structure is the most common reason for unnecessary declines.
How commercial lenders assess deals
Income & Debt Servicing (DSCR)
Measures income against loan repayments. Typically 110 to 140 per cent or more required, replacing the ICR used in buy-to-let.
Property Type
Retail, office, industrial, mixed-use. Each attracts a different lender pool, and some sectors have far fewer options.
Tenant or Business Strength
Lease length, tenant quality and rental stability for investment, or business accounts and trading performance for owner-occupied.
Loan-to-Value (LTV)
Typically 60 to 75 per cent, lower than BTL. Higher-risk assets, weaker tenants or shorter leases push LTV down.
Experience & Investor Profile
Track record and background matter. First-timers can still access the market with the right presentation.
Types of commercial finance we arrange
Commercial finance is not one product. The right structure depends entirely on what the property is, who is behind it, and what the long-term strategy is.
Commercial Investment Mortgages
- Leased to tenants
- Rental income assessed via DSCR
- Long-term investment focus
Owner-Occupied Commercial Mortgages
- Purchase or refinance premises
- Business income assessed
- Aligned with business growth
Semi-Commercial Mortgages
- Residential and commercial elements
- Hybrid income models
- Specialist lenders required
Large & Complex Investment Deals
- Large blocks and MUFBs
- Portfolio acquisitions
- Bespoke lender solutions
Bridging into Commercial Finance
- Short-term acquisition finance
- Asset repositioning
- Planned exit into commercial mortgage
How we structure commercial deals
Matching lender to property type
- Asset class determines lender pool
- Risk profile shapes deal approach
- Deal size influences viable lenders
Aligning income with lending criteria
- Rental income mapped to DSCR
- Business income assessed for owner-occupied
- Tenant strength factored in
Structuring the deal correctly
- Personal vs limited company ownership
- Leverage optimised for the asset
- Repayment strategy confirmed first
Planning the exit or long-term strategy
- Transitional assets need a forward plan
- Repositioning structured with the exit in view
- Future refinance viability confirmed
Real example: mixed-use approved
The situation
- Purchasing a mixed-use building
- Retail unit on the ground floor
- Residential flats above
The issue
A standard BTL lender had declined because the commercial element took the property outside their criteria. The deal was strong, it had simply been placed with the wrong lender type.
How we structured it
- Placed with a specialist semi-commercial lender
- Income model aligned with DSCR
- Deal positioned correctly for the asset type
Commercial deals are not standard, and should not be structured like they are.
Ready to finance your commercial property? Message us
Send us the property and the figures on WhatsApp. We match your deal to the right commercial lender from the start, whether it is investment, owner-occupied, mixed-use or a complex block.
We reply fastest on WhatsApp, message us anytime.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Commercial mortgages and some buy-to-let mortgages are not regulated by the Financial Conduct Authority. Albion Financial Advice Services Ltd is authorised and regulated by the FCA, FRN 769375.
Last updated: 23 June 2026