Commercial LTV & Deposit Calculator
Determine your company’s required cash deposit, calculate exact Loan-to-Value (LTV) tiers, and budget for all acquisition costs to complete your purchase.
Calculating Required Deposit & Max Gearing on Commercial Assets?
Explore senior debt options across our Commercial Mortgages facility or review deposit structures in our First-Time Commercial Buyers Guide.
Commercial Loan-to-Value (LTV) & Deposit Calculator
Calculate the exact corporate cash required to complete your commercial purchase, including equity deposit, SDLT, and transaction fees.
Competitive terms across whole market (SONIA + 2.75% to 3.75%)
Estimated Completion Outlay Breakdown
How Commercial LTV Affects Borrowing Rates
Lenders price risk against equity buffers. Sizing your facility into a lower LTV bracket directly reduces annual interest expenditure.
≤ 60% LTV (Prime)
Available from High Street commercial banks (Barclays, NatWest, Lloyds, HSBC) and prime challenger lenders. Requires minimum 40% equity deposit.
61% – 70% LTV (Standard)
The most common gearing for UK commercial investment purchases and owner-occupier trading units. High lender competition and fast approvals.
71% – 75% LTV (Max)
Maximum leverage available in the standard commercial market. Requires strong tenant covenant, longer lease terms, and solid corporate balance sheet.
Frequently Asked Questions on Commercial LTV
What is the maximum Loan-to-Value (LTV) for a UK commercial mortgage?
The standard maximum LTV across UK commercial mortgage lenders is 75% for owner-occupied trading premises and high-quality commercial investments with strong lease covenants. Commercial land without planning permission typically caps at 50% to 55% LTV.
How does lower LTV reduce commercial mortgage interest rates?
Commercial lenders price interest margins based on credit risk. Borrowing at 60% LTV or below represents significantly lower default risk, unlocking prime pricing (typically SONIA + 2.0% to 2.75%), whereas borrowing at 75% LTV incurs higher margin spreads (SONIA + 3.25% to 4.50%).
Can my company borrow 100% of a commercial property purchase price?
While no single property loan advances 100% on a standalone asset, experienced corporate borrowers can achieve 100% funding by providing additional security (cross-collateralisation or equitable charge) over an existing unencumbered property within their corporate portfolio.
What auxiliary costs should our company budget for on completion?
Beyond the 25%–35% cash equity deposit, corporate borrowers must budget for HMRC non-residential Stamp Duty Land Tax (SDLT), RICS commercial valuation survey fees (£1,500–£4,000+), dual legal representation fees (£2,500–£5,000+), and lender arrangement fees (1%–2% of the facility).
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Contextual Guidance & Transaction Facilities
Ready to Structure Your Commercial Deposit & Loan?
Our underwriting team searches 100+ commercial lenders to match your deposit capital with the most competitive LTV tiers and lowest interest margins.
Statutory Disclosures: commercialmortgagedealer.com is a trading style of Hello Leads Ltd. Registered in England & Wales. Company No. 10286382. ICO Registration: ZB924628. Registered office: 1 Llandegfedd Close, Cardiff, Wales CF14 9HD.
Commercial mortgages arranged for corporate entities are not regulated by the Financial Conduct Authority (FCA). Your property or assets may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.