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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. Remember, semi-commercial property is exempt from the 3% Stamp Duty Surcharge.

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

Qualifying for a semi-commercial mortgage

To achieve the very best rates you will need to have either experience in running or letting a commercial property, or have owned more than one buy to let property for a minimum of two years.

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. Most lenders will require first-time commercial investors to own an additional property and have provable outside income. 

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. 

We can help with:

  • up to 5 satisfied CCJs within the last 3 years (value less than £10k)
  • Missed payments (no missed secured loan repayments within the last 12 months)
  • Bankruptcy / debt management plans (not within the last 3 years and must be discharged)

Mortgage rates and terms for semi-commercial property

We can obtain the following for semi-commercial property:

  • Rates from 2.5% above Bank Rate
  • Lender arrangement fees from 0.75% - 2% of the loan amount
  • Loans from £75k - no upper limit
  • Minimum term: 2 years
  • Maximum term: 30 years
  • Capital and repayment & interest only terms, or part and part
  • 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 - P60s /SA302s / Tax returns / SA100s
  • Property portfolio - if existing property landlord
  • Mortgage history
  • 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 
Email: enquiry@mortgagesforbusiness.co.uk

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

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