Commercial and Semi-Commercial Property Mortgages

Increasingly we have seen property investors moving into commercial property, many of these investors will have formerly been Buy to Let property portfolio investors.  For the majority of Buy to Let investors their first step into commercial investment will be via semi-commercial properties i.e. a property with a residential (Buy to Let only) and commercial element such as a retail unit with a flat above it.

At Mortgages for Business we have helped our Buy to Let clients with their first commercial property mortgages, as well dealing with our more experienced clients who have large semi commercial property portfolios (residential element on a Buy to Let rather than occupancy basis only can be dealt with by Mortgages for Business).

Investors should consider that although there is a residential element involved in the purchase, financial institutions will treat the property as a commercial proposition and the rates and terms available will reflect this.

Investors wishing to arrange a mortgage on a commercial or semi-commercial property can expect to pay Bank Base Rate + 0.75% to 2%, at a loan to property value up to maximum of around 85%.

The maximum term of a semi commercial investment mortgage will tend to be 30 years. Interest only options are available.