What is a semi-commercial mortgage?

A semi-commercial mortgage, sometimes called a mixed-use mortgage, is used to buy or refinance a property that combines commercial and residential elements. Typical examples include a shop with a flat above, a restaurant with owner accommodation, or offices with residential units attached.

How lenders assess them

Because part of the property is commercial, these loans sit outside standard residential lending. Lenders will consider the rental income or trading performance connected to the property, the split between the commercial and residential parts, and your wider financial position. Deposit requirements are usually higher than for a standard residential mortgage.

Who they suit

Semi-commercial property is popular with investors seeking stronger yields than standard buy to let, and with business owners who want to live above or alongside their premises.

Expert advice

SM Finance’s specialist team will take the time to understand your plans and approach the lenders best placed to support them, from high street banks to specialist funders. Call us on 020 4511 9511 to discuss your requirements.

Your property may be repossessed if you do not keep up repayments on your mortgage.