The specialist commercial finance market continues to broaden as lenders look beyond traditional investment property and into more complex business borrowing. The latest example comes from Roma Finance, which has launched a new long-term commercial mortgage proposition following its forward-flow funding agreement with J.P. Morgan.

While product launches are common within specialist finance, this announcement is notable because it reflects a wider shift in lender appetite towards owner-occupied commercial property, mixed-use assets and more sophisticated ownership structures that many mainstream lenders can struggle to accommodate.

For business owners, property investors and professional advisers, it is another indication that commercial mortgage options continue to evolve, but it also serves as a reminder that securing finance is often determined by the quality of the structure rather than simply the value of the property.

A Broader Appetite for Commercial Property Lending

Roma Finance's new proposition offers commercial mortgages across England, Scotland and Wales, with facilities of up to £2 million, lending up to 70% loan-to-value and pricing starting from 7.1%, alongside fixed-rate options.

The lender has also established a dedicated commercial underwriting team to support the new proposition, positioning the product alongside its existing bridging finance and development finance ranges.

Perhaps more importantly, the expanded proposition creates a clearer pathway for borrowers who initially use short-term funding to acquire or develop commercial property before refinancing onto longer-term commercial facilities once the asset has stabilised.

This increasingly mirrors the way many commercial property transactions now develop, where acquisition, refurbishment, redevelopment and long-term ownership are considered as part of one funding strategy rather than separate events.

Why Commercial Mortgages Are Different from Residential Lending

Many borrowers assume commercial mortgages are assessed in much the same way as residential or buy-to-let applications. In reality, commercial underwriting is significantly more detailed.

Where residential lenders are primarily concerned with personal income and affordability, commercial lenders typically assess multiple interconnected factors, including:

• the strength and sustainability of the trading business;
• the income generated by the property itself;
• business cash flow and profitability;
• lease structures;
• tenant quality;
• ownership arrangements;
• future exit strategy; and
• the long-term viability of the business occupying the premises.

This broader assessment allows specialist lenders to consider more complex cases but also requires significantly more preparation before an application is submitted.

Growing Demand for OpCo-PropCo Structures

One area receiving increasing attention is the use of Operating Company and Property Company structures, commonly referred to as OpCo-PropCo arrangements.

Rather than allowing the trading business to own the commercial premises directly, many business owners establish a separate company to hold the property while the operating business pays rent to that company.

There can be several commercial, tax and succession planning reasons for doing so, although every business should seek independent legal and tax advice before deciding whether such a structure is appropriate.

From a lending perspective, however, these arrangements introduce additional layers of underwriting.

Lenders may need to understand the relationship between the companies, assess whether rental payments are commercially sustainable, review guarantees, consider connected-party transactions and establish whether both businesses remain financially robust over the term of the loan.

These are precisely the types of cases where specialist commercial lenders are increasingly differentiating themselves from the high street.

Bridging Finance Is Often Only the First Step

The announcement also reflects another growing trend within commercial finance.

Bridging loans have become an increasingly common solution for businesses purchasing premises quickly, acquiring vacant commercial property or funding refurbishment before longer-term finance becomes available.

Once refurbishment has been completed, vacant space has been let or trading has stabilised, many borrowers seek to refinance onto longer-term commercial mortgages with lower monthly costs and greater certainty.

Having lenders able to support borrowers throughout both stages of the funding journey may reduce unnecessary refinancing delays and create a smoother transition between short-term and permanent funding.

For borrowers, considering the eventual exit strategy before taking out bridging finance remains one of the most important aspects of any commercial funding transaction.

Mixed-Use and Specialist Commercial Assets Continue to Require Specialist Advice

Commercial property rarely fits into neat categories.

Many applications involve buildings that combine retail premises with residential accommodation, offices above shops, industrial units with ancillary residential space or properties occupied partly by the owner and partly by tenants.

Equally, trading businesses may have experienced recent fluctuations in profitability, seasonal income or changes following expansion.

These factors do not necessarily prevent finance from being obtained, but they often require lenders that understand commercial risk rather than relying solely on automated affordability models.

Selecting a lender whose underwriting approach matches the complexity of the transaction can be just as important as negotiating the interest rate.

An Opportunity for Businesses Planning Their Next Move

The expansion of specialist commercial lending should provide encouragement for business owners considering purchasing their own premises, investors refinancing existing commercial assets and companies reviewing older bridging facilities.

It may also create new opportunities for accountants, solicitors, commercial agents, corporate finance advisers and restructuring professionals working with clients whose borrowing requirements fall outside mainstream lending criteria.

As commercial lending becomes increasingly specialised, borrowers are likely to benefit most from obtaining advice before agreeing a purchase rather than attempting to solve funding challenges once contracts have been exchanged.

Willow Private Finance's View

The commercial mortgage market continues to evolve as specialist lenders broaden their appetite for more sophisticated ownership structures and business borrowing.

While new products naturally attract attention, successful commercial mortgage applications remain driven by preparation rather than product availability.

Understanding how the business operates, how the property is owned, how income flows between connected companies and how the borrowing will be repaid are all fundamental to lender decision-making.



For businesses considering purchasing premises, refinancing existing commercial property or exiting short-term finance, obtaining specialist advice at an early stage can significantly improve both lender choice and transaction outcomes.