Loan-to-value shows how much you want to borrow against a commercial property. It matters, but lenders also assess the property, the borrower, the income or rental evidence and the repayment plan before deciding whether a case is workable.
What does commercial mortgage LTV mean?
Commercial mortgage loan-to-value, usually shortened to LTV, is the loan amount as a percentage of the property value used by the lender. A £650,000 loan against a £1,000,000 valuation is 65% LTV.
The calculation is simple: loan amount ÷ property value × 100 = LTV. The lending decision is not. For a purchase, a lender will commonly focus on the lower of the agreed price and its valuation. For a remortgage, it will usually use a current valuation.
If the valuation comes in lower than you expected, the same borrowing request becomes a higher LTV. That can change the amount, lender choice or terms that are realistic.
Why LTV is only part of the commercial mortgage decision
Two applications at the same LTV can look very different to a lender. The percentage is one way of measuring risk, but the property, the borrower and the deal structure must work together.
Property and security
Type, condition, use, tenure, location and likely saleability all matter. A shop, office, warehouse, industrial unit, pub, hotel or mixed-use building can be assessed differently.
Borrower strength
For an owner-occupied business, lenders often review accounts, cash flow, commitments, management experience and the ability to service the loan through normal trading cycles.
Finance structure
The purpose of the funds, term, repayment method, credit profile, source of contribution and deadline can all affect whether a lender sees the proposal as practical.
There is no single commercial mortgage LTV for every case
A lower LTV can widen lender choice. A higher LTV is not automatically unavailable, but it generally needs stronger evidence and may be less suitable when the property is specialist, income is variable or the exit plan is tight.
How commercial mortgage LTV works in practice
These examples show the maths only. A lender would still need to review the property, the borrower and the supporting evidence before making any lending decision.
Buying commercial premises
Property value: £800,000
Loan required: £520,000
LTV: 65%
Funds contribution before purchase costs: £280,000
The lender would also assess the business accounts, affordability, directors, building and repayment proposal.
Refinancing an investment property
Current valuation: £1,200,000
Existing borrowing: £720,000
Current LTV: 60%
Indicative equity before costs and other charges: £480,000
Further borrowing depends on the valuation, lease, rent, tenant quality, purpose of funds and the repayment plan.
Why valuation matters
If an £800,000 purchase is valued at £760,000, a £520,000 loan becomes approximately 68.4% LTV against the valuation, not 65% against the purchase price.
That is why a realistic valuation assumption is more useful than setting a target percentage in isolation.
Your contribution is more than the LTV calculation
The gap between the loan and the property value will usually be met from a deposit, existing equity or another agreed source of funds. Lenders will want to understand where that contribution comes from, particularly where it is introduced through a company, gifted or secured against another property.
A quoted 100% structure may use more than one property. The 100% commercial mortgage guide explains why the combined loan-to-value can still be below 100%.
Keep a separate allowance for valuation fees, legal fees, lender or broker charges, tax where applicable, survey costs and required works. Not every third-party cost can be added to the mortgage.
Owner-occupied and investment property: the evidence changes
How to make your LTV case easier for a lender to assess
- Use a realistic purchase price or current valuation rather than an optimistic estimate.
- Be ready to evidence the deposit, equity or other contribution and its source.
- Provide current accounts, management information or rental evidence that shows how borrowing will be supported.
- For investment property, gather the lease, rent schedule, tenant details and evidence of any upcoming changes.
- Allow time for valuation and legal work, particularly for unusual property or a fixed transaction deadline.
- Explain any historic credit issue, unusual account movement or one-off event early and with useful context.
Why Count Ready does not publish a single “maximum commercial mortgage LTV”
A headline percentage can be misleading. A lender may take a different view because of property type, sector, lease terms, accounts, deposit source, credit profile, loan size or timescale. The useful answer is a realistic route based on the actual case, not a generic number that creates false confidence.
What current LTV examples do—and do not—tell you
Published lender pages can help you sense-check a proposal, but they are examples of particular products rather than a market-wide maximum. As at 21 July 2026, the sources below illustrate why a useful LTV answer must stay tied to the property, borrower, loan purpose and evidence.
NatWest deposit guideline
NatWest says a 25% deposit is typically required as a guideline for its commercial mortgage, while also stating that the deposit varies with the amount requested, business circumstances and its credit assessment. That is a product example, not a guarantee of 75% LTV.
Lloyds product example
Lloyds publishes up to 70% LTV for a named Buy-to-Let Company Mortgage product. The stated ceiling belongs to that product and remains subject to lender eligibility and assessment; it should not be treated as the limit for every commercial property case.
Evidence beyond LTV
The British Business Bank explains that commercial property finance normally involves a deposit and repayments, and that lenders look at trading history, accounts and projections. This is why a mathematically acceptable LTV can still fail the wider credit assessment.
Last reviewed: 21 July 2026. Lender products, criteria and published examples can change. Count Ready is a credit broker, not a lender; this page provides general information and is not a mortgage offer, valuation or promise of acceptance.
Check what loan-to-value may be realistic for your property
Share the property type and use, agreed price or current value, loan required, deposit or equity, available income or rent and your deadline. Count Ready will review the figures and explain which lender routes appear worth considering before you commit to valuation or legal costs.
Your figures are used to respond to this enquiry. Submitting the form does not commit you to an application and does not guarantee that a lender will accept the case.
Commercial mortgage LTV questions
What is a commercial mortgage LTV?
Commercial mortgage LTV is the loan amount as a percentage of the property value used by the lender. A £650,000 loan against a £1,000,000 valuation is 65% LTV.
Does the lender use the purchase price or the valuation for LTV?
For a purchase, lenders commonly calculate LTV against the lower of the agreed price and their valuation. For a remortgage, they usually rely on a current lender-approved valuation. A lower valuation can increase the LTV even when the requested loan does not change.
Is a higher LTV always more expensive?
Not always, but a higher LTV can reduce lender choice or require a stronger case. Pricing and terms depend on the property, borrower, income evidence, repayment route and lender criteria as well as the LTV.
Can the valuation affect the amount I can borrow?
Yes. Lenders usually calculate LTV using their own valuation. If it is lower than the price or value you expected, the same loan request becomes a higher LTV and may change the amount or terms available.
Can I use equity in another property as part of the deal?
Possibly. Some transactions use equity or additional security, but the lender will need to assess the other property, existing borrowing, ownership, affordability and the overall repayment plan.
Can additional security increase the amount available?
Additional security may help in some cases, but it is not an automatic way to increase borrowing. The lender will assess the value, ownership and existing charges on each property, as well as affordability and the proposed repayment route.
What costs sit outside the commercial mortgage deposit?
Budget separately for valuation, legal work, lender and broker charges, tax where applicable, surveys, insurance and any required property works. Some costs may not be added to the mortgage, so the cash contribution can be higher than the simple LTV gap.
Is LTV assessed differently for an owner-occupied property and an investment property?
The LTV calculation is the same, but lenders assess different supporting evidence. Owner-occupied cases often focus on business cash flow and accounts, while investment cases commonly focus on rent, lease terms, tenant quality and property security.
Choose the next guide for your commercial mortgage figures
Use the guide that matches the question raised by your valuation, deposit, lender criteria or application stage.