Mortgages for semi-commercial property

Semi-commercial property, also known as “mixed-use” consists of both residential and commercial elements. This type of property is exempt from the stamp duty surcharge.

Semi-commercial property types

The following property types are all classified as semi-commercial.

  • Shops with flats above
  • Restaurants with flats above
  • Offices with flats above
  • Pubs with self-contained living areas
  • Holiday parks with residential accommodation
  • Guest houses with owner’s accommodation
  • B&Bs with owner’s accommodation
  • Home based health and beauty clinics
  • Garden nursery business with house attached
  • Boarding kennels and cattery businesses

Qualifying for a semi-commercial mortgage

To achieve the very best rates you will need to have experience in running or letting a commercial property. 

If this is your first commercial investment, don’t panic. We have access to lenders which can help with this too, just expect rates to be slightly higher.

We also have access to lenders which will consider applicants with adverse credit. If you do have any credit blips, please make sure you mention these to one of the team when applying.

Mortgage rates and terms for semi-commercial property

We can obtain the following for semi-commercial property:

  • Rates from 2.2% above Bank Rate
  • Lender arrangement fees from 0% - 2% of the loan amount
  • Minimum term: 2 years
  • Maximum term: 30 years
  • Capital and repayment & interest only terms
  • Loan to value up to 75% LTV (subject to market rent)

Standard documentation required

If you’re looking to apply, please be prepared to provide the following:

  • A completed commercial mortgage application form
  • Proof of ID and address
  • Evidence of income
  • Property portfolio - if existing property landlord
  • Copy of the lease(s) - if in place
  • Copy of credit report – if showing blips

Mortgage application processing times

Processing times vary dependent on the applicant’s requirements and quality of application. A typical timescale would be around two – three months, although we have had applications go through to completion within 30 days!


How to apply for a semi-commercial mortgage
Call: 0345 345 6788 and select option 2 (Commercial Desk)
Email: enquiry@mortgagesforbusiness.co.uk

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.