An owner-occupied commercial mortgage is when the ultimate owner of the company and the owner of the property is the same person, or people.
If a property is owned by an individual, who is also the shareholder of the business, the application would be considered owner-occupied. Although they are a different legal entity, the lender will take a common-sense approach and treat the company and individual as the same entity.
This means that low rates are available even when you rent the property to your own Ltd company. This is also true when the property is owned by a different Ltd company, or a pension fund – if the ultimate owner of both is the same person.