How much can i borrow ?
Commercial Mortgage
Understand your borrowing potential for commercial mortgages with an easy-to-use estimation tool.
Gain valuable insights to help you plan your commercial property investment effectively.
Applicable to all commercial property types, including retail, office spaces, warehouses, and mixed-use properties.
Get tailored advice and insights to help you secure the best possible deal for your commercial property investment.
Commercial Mortgages Affordability Calculator
Enter a few details below to get an estimate of your borrowing potential.
How much you could comfortably borrow?
Our Commercial Mortgage Calculator provides a quick, high-level estimate of how much you could borrow for a commercial investment property. However, it’s important to note that the actual borrowing amount can vary significantly depending on several factors:
- Lender Criteria: Each lender has its own approach to assessing affordability and risk.
- Property Type: Mixed-use properties, specialized units, or multi-tenanted properties may influence the amount you can borrow.
- Covenant Strength: The financial stability of tenants and lease agreements play a significant role in determining borrowing capacity.
- Product Type: The terms of the mortgage, such as fixed or variable rates and loan term length, also affect calculations.
For a more accurate and tailored estimate, it’s best to get in touch with our team.
How Much Can I Borrow?
Discover your commercial mortgage eligibility. Our calculator uses rental income to estimate how much you might qualify for. Just enter the monthly income.
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Why choose Mortgage.One for your commercial property mortgage?
- Transparent Fee Structure: Unlike most of the brokers in the UK, we do not charge additional mortgage brokerage fees. Our income is derived from lender procuration fees, providing you with both clarity and cost savings.
- Deep Market Knowledge: We continuously monitor the evolving lending landscape, understanding the nuances of lender policies to secure you the best possible rate for your commercial property mortgage. See how our expertise has helped clients in our case studies.
- Access to a Wide Lender Network: We search for the most favorable commercial mortgage rates and terms from multiple lenders. We then match these rates and terms to your property and investment goals. Explore our lender partners.
- Save Time & Secure the Right Property: We streamline the commercial mortgage process, saving you time and effort. Identify the most competitive terms quickly so you can act decisively on the ideal property.
- Proven Industry Expertise: With over fifty years of collective experience in banking and mortgage brokerage, we have the expertise to manage transactions seamlessly and navigate complex financial situations with confidence. Learn more about our team's extensive expertise.
- Strong Lender Relationships: Our established connections within the industry allow for efficient communication and a deep understanding of lender priorities. We work closely with you to ensure your loan proposal effectively highlights all strengths and mitigates any potential risks and receive the most competitive terms possible.
- Informed Decision-Making: Get the clarity you need with our suite of commercial mortgage calculators.
- Personalized Mortgage Guidance: Benefit from personalized advice and dedicated assistance from mortgage advisors who will guide you through every step of the process.
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Frequently Asked Questions
Several factors influence your borrowing capacity, including the property type, rental income, loan-to-value ratio, lender-specific criteria, and the strength of the tenant covenant. Each lender evaluates these factors differently, making it essential to understand their specific requirements.
Lenders typically account for two key aspects when assessing affordability:
Coverage for Rental Voids: Lenders often require the rental income to cover mortgage payments by 125% to 145% to account for potential void periods or unexpected expenses. This ensures that the property remains financially viable even during periods of reduced income.
Interest Rate Volatility: To mitigate the risk of interest rate fluctuations, lenders apply different stress tests depending on the product type. For five-year fixed-rate mortgages, they often stress test at the actual pay rate, providing greater certainty. However, for two- or three-year fixed, variable, or tracker mortgages, which don’t offer long-term rate stability, lenders typically add an additional 1–2% on top of the product rate to ensure repayments remain affordable under changing market conditions.
Yes, the calculator can provide an estimate for mixed-use properties, such as those with commercial units on the ground floor and residential spaces above. However, the actual amount will depend on the proportion of commercial versus residential use and how lenders assess the property.
The financial stability of tenants (covenant strength) and the length of lease agreements are crucial factors in determining how much you can borrow. Properties with long-term leases and reliable tenants are seen as lower risk, offering predictable rental income, which may allow for higher borrowing limits or better terms. On the other hand, shorter leases or tenants with weaker financial profiles could lead to stricter lending criteria or reduced borrowing capacity.
For a clearer picture of how much you can borrow, it’s important to consult with our team. We can assess your unique situation, consider lender-specific criteria, and provide tailored advice to secure the best terms.
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