mixed use and semi-commercial mortgages

Mixed use or semi-commercial mortgages are loans secured against a property made up of more than one type of property, such as shop with a flat above it. This type of property requires a specialist mortgage that will cover both the retail and residential elements.

We are an experienced specialist mortgage broker, and work with all the mixed use and semi commercial mortgage lenders to source funding from £100,000 to over £100 million. We are whole of market, meaning that we can work with all available lenders in the UK to source the best semi commercial mortgage rates possible.

There are different types of mixed used property finance, including:

Interest only – only the interest on the loan is being repaid, meaning that you need to make provision to pay off the capital by the end of the mortgage.
Fixed rate - the sum repaid has a fixed interest rate for a period of time (usually between 2 and 5 years), which can be useful to manage your monthly outgoings. After the fixed period, the interest reverts to the lenders standard variable rate for the rest of the mortgage, unless you complete on a new mortgage deal.
Variable rate - the monthly interest base rate is set by the lender and adjusted monthly or annually, which means it can go up or down.
Tracker rate - the interest rate tracks the Bank of England’s base rate, which means it can go up or down.
Discounted rate - this is a form of variable mortgage, where the interest rate is set just below the lenders standard variable rate, for a set period of time.

Semi-commercial buy to let mortgages

In addition to mixed-use/semi-commercial mortgages to buy mixed use properties, there are also mixed-use/semi-commercial buy to let mortgages if you are planning to rent out the semi commercial property that you are buying. If you plan to live in the residential part of the building, you will require a regulated mortgage product due to the intention of making it your main home.

If you are buying the property with the intention of letting either or both of the elements, the mortgage lender will need to know who will be occupying the commercial element and the rental figure that it will generate. The lender will also need to know how much rent the residential element would achieve.

Your property may be repossessed if you do not keep up repayments in line with the lenders schedule. Think carefully before securing debt against any property.