Commercial Mortgages
Wellspring Capital acts as a commercial mortgage broker, advising property investors and trading businesses on lender selection, structure, and funding risk for commercial and mixed-use property across the UK.
Commercial mortgage decisions are rarely driven by rate alone. Income quality, asset type, lease structure, and lender alignment are typically the determining factors, particularly where short-term bridging finance is being used as part of a wider acquisition or refinance strategy, or where a project progresses into Development Finance.
When we’re typically involved
We’re often engaged early in a transaction — before valuation and legal costs are committed — to ensure lender appetite, structure and leverage align with the asset.
Commercial mortgages are commonly used by investors acquiring or refinancing:
- Mixed-use property (shops with flats above)
- Industrial units and warehouses
- Retail parades
- Offices
- Specialist assets such as pubs and leisure properties
Lenders assess commercial investment property primarily on rental income, location, and asset type. How that income is evidenced and presented often determines both leverage and pricing.
We work with investors ranging from first-time commercial buyers to experienced portfolio landlords operating through limited companies.
If you’re assessing a commercial or mixed-use transaction and want an early view on lender appetite and structure, we’re happy to help.
How commercial mortgage lenders assess applications
Although criteria vary, most decisions are driven by a small number of core factors.
Income and debt service coverage
Lenders typically require rental income to exceed loan repayments by a margin, commonly referred to as a debt service cover ratio (DSCR). This is often in the region of 125%–145%, though higher ratios may apply for specialist assets.
Income assessment depends on:
- Lease length and structure
- Tenant covenant strength
- Break clauses and rent reviews
- Whether income is commercial, residential, or blended
Property type and risk profile
Different assets attract different risk weightings. Industrial property is generally viewed more favourably than secondary retail, while specialist assets are assessed using more detailed criteria.
Loan-to-value (LTV)
Commercial mortgage leverage is typically lower than residential lending:
- 60–75% LTV is common for standard investment assets
- Higher leverage may be available where income quality justifies it
Borrower experience
While income is the primary driver, lenders also consider:
- Track record with similar assets
- Ownership structure (personal or limited company)
- Portfolio exposure
Typical commercial mortgage structures
- Loan type: Commercial term loan
- Term: 12–25 years
- Repayment: Interest-only or capital repayment
- Security: First legal charge over the property
- Personal guarantees: Common, though the scope varies
Terms are driven by risk and structure, not simply loan size.
Limited company commercial mortgages
Many commercial property investors purchase through SPVs or trading limited companies. Lenders typically assess:
- The property and income first
- Directors’ experience
- Guarantees and supporting security where required
Company ownership does not prevent access to competitive funding, but clarity of structure is critical.
Owner-occupied and trading business mortgages
Commercial mortgages are also used by trading businesses purchasing premises such as offices, warehouses, retail units, and hospitality property. In these cases, lenders assess both:
- The property
- The underlying business performance
Where early structuring adds the most value
The strongest commercial mortgage outcomes are typically achieved where the structure is aligned with lender criteria from the outset. Areas that benefit most from early review include:
- Lease structure and documentation
- EPC and compliance position
- Asset suitability relative to lender appetite
- Selection of an appropriate funding partner
Addressing these points early often leads to smoother credit approval and more consistent pricing.
How Wellspring Capital works
Wellspring Capital focuses on structuring and introducing commercial mortgage opportunities to appropriate funding partners. Our role is to assess feasibility early, align the opportunity with lender appetite, and present cases in a lender-ready format.
If you are assessing a commercial purchase or refinance and would value an initial view on structure and lender appetite, we are happy to review the position.
Important note
Wellspring Capital is not authorised or regulated by the Financial Conduct Authority. We do not provide regulated mortgage advice. Our role is limited to commercial finance introductions and structuring support.