Can you get a commercial mortgage in London?
Yes. London is the largest and most liquid commercial property market in the UK, and a wide range of specialist lenders will fund purchases here, from a single shop with a flat above it to a multi-let office or an industrial unit. The main difference versus the rest of the country is scale: values are higher, so deposits are larger in cash terms, and lenders look closely at the strength of the income and the exit.
Whether you are buying premises for your own business or acquiring an investment asset, a commercial mortgage in London works on the same principles as elsewhere — the deal simply tends to be bigger and the tenant mix more varied.
How much deposit do you need in London?
Deposit requirements in London mirror the national picture but bite harder in cash terms because values are high. As a general guide:
- Owner-occupied premises: lenders often go to 70% to 75% loan-to-value, so a deposit of 25% to 30%.
- Investment property: typically 65% to 75% loan-to-value, so 25% to 35% down, depending on the tenant and lease.
- Specialist or semi-commercial assets: often 60% to 70%, meaning a larger deposit.
On a one million pound office, a 30% deposit is 300,000 pounds — so London buyers frequently structure deals through a company, release equity from other assets, or combine investors to raise the cash.
What do London lenders focus on?
Because London rents and yields differ so much by postcode and sector, lenders concentrate on the quality and durability of the income. Key factors include:
- Tenant covenant — how financially strong the tenant is and how long the lease has left to run.
- Rental cover — the rent needs to comfortably cover the mortgage payment, usually at least 1.25 times.
- Yield — prime central London yields are often lower than regional equivalents, which affects how much a lender will advance.
- Sector — offices, retail, industrial and leisure each carry different lender appetite in the capital.
Which London sectors attract lenders?
Industrial and last-mile logistics near the M25 and inside the North and South Circular remain in strong demand. Well-let offices in established districts and mixed-use parades with residential upper floors are also well supported. Retail is assessed case by case, with lenders favouring convenience, food and essential-service tenants over discretionary units. Leisure assets such as pubs, restaurants and hotels are fundable but usually need a specialist lender.
How do you fund a London commercial purchase quickly?
London deals move fast and are often competitive, so speed of funding matters. The traditional route — a broker manually packaging your figures and shopping them round lenders — can take weeks before you even have terms. Assesr compresses that. You enter the property, the income and your position, and Assesr builds a lender-ready credit paper in around 60 seconds, then matches it to specialist commercial lenders whose criteria fit the deal.
You only pay a 0.5% Assesr Fee on drawdown, and nothing until completion — a quarter of the typical broker fee. That keeps costs down on large London loans where a full percentage-point broker fee can run into tens of thousands.
Owner-occupied versus investment in London
If you run a business and want to stop paying rent, an owner-occupied commercial mortgage lets you buy your premises and build equity. Lenders assess your trading accounts and affordability. If you are buying to let the property to a tenant, it is an investment mortgage, assessed mainly on the rent and the covenant. London has deep markets for both, and Assesr handles owner-occupied and investment commercial and semi-commercial cases on an unregulated basis across the UK.
Frequently asked questions
How big a deposit do I need for a London commercial mortgage?
Most lenders want at least 25% to 30% of the purchase price. Owner-occupied deals can sometimes achieve a higher loan-to-value, while investment and specialist assets in London may need 30% to 40% depending on the tenant and sector. Because values are high, that deposit is large in cash terms, so many London buyers structure through a company or combine equity sources.
Are London commercial mortgage rates higher than the rest of the UK?
The headline rate is set by the same national market forces, but London deals often involve larger loans, more complex tenancies and higher values, which affects lender choice and pricing rather than the base rate itself. A strong, well-let London asset can price competitively.
Can I get a commercial mortgage on a London property let to multiple tenants?
Yes. Multi-let commercial and semi-commercial assets are common in London. Lenders assess the strength and spread of the income, the lease lengths and the sector mix before agreeing terms. A diversified income can actually strengthen a deal because it reduces reliance on any single tenant.