Semi-Commercial Mortgages
A semi-commercial mortgage is designed for properties that combine both residential and commercial elements. Whether you are investing in a shop with a flat above or a mixed-use building, this type of mortgage allows you to generate income from multiple sources.
At Vincent Burch Mortgage Services, we help investors and business owners secure the right semi-commercial mortgage, with access to a wide range of UK lenders and tailored advice based on your goals.
What Is a Semi-Commercial Mortgage?
A semi-commercial mortgage, also known as a mixed-use mortgage, is used to purchase or refinance a property that includes both commercial and residential space.
These mortgages typically sit between residential buy-to-let and full commercial finance. Rates are often more competitive than pure commercial mortgages, as lenders can assess income from both parts of the property.
Types of Semi-Commercial Property
Semi-commercial properties can vary widely, but common examples include:
- Shops with flats above
- Offices with residential accommodation
- Pubs or restaurants with living space
- Commercial units with attached housing
- Cafés or takeaways with residential flats
- Veterinary or medical practices with accommodation
Any property combining business and residential use on the same title may qualify.
Who Are Semi-Commercial Mortgages For?
Property Investors
Investors looking to diversify their portfolio and benefit from multiple income streams often choose semi-commercial properties.
Landlords Expanding into Commercial
This type of mortgage can act as a stepping stone from buy-to-let into commercial property investment.
Business Owners
Business owners may purchase a property to operate from while generating additional income from the residential element.
How a Semi-Commercial Mortgage Works
Semi-commercial mortgages work similarly to other property finance options, but lenders assess both residential and commercial income when determining affordability.
Typically:
- Lending is available up to around 75% loan to value
- Deposit requirements usually start from 25%
- Rental income from both elements can be considered
- Terms can be arranged on an interest-only or repayment basis
Each lender will have different criteria depending on the property type and your experience.
Key Considerations
Deposit Requirements
Most lenders require a minimum deposit of around 25%, although this can vary depending on the deal and risk profile.
Income Assessment
Lenders will consider rental income from both residential and commercial tenants when assessing affordability.
Experience
Some lenders prefer applicants with landlord or commercial experience, but options are available for first-time investors.
Property Valuation
The value and condition of the property will influence the terms and lending available.
Benefits of Semi-Commercial Mortgages
- Multiple income streams from one property
- Often lower rates than pure commercial finance
- Greater flexibility in lender criteria
- Opportunity to diversify your investment portfolio
- Potential for higher rental yields
How We Can Help
We work with a wide panel of lenders, including those specialising in semi-commercial and complex cases. Whether you are purchasing, refinancing or expanding your portfolio, we structure the right deal around your circumstances.
Our advice is tailored, practical and focused on securing the most suitable mortgage for your investment.
Get in Touch
Looking to invest in a mixed-use property? Speak to Vincent Burch Mortgage Services today to secure the right semi-commercial mortgage.