What is a semi-commercial mortgage?
A semi-commercial mortgage can help you buy or remortgage properties used for both residential and business purposes. They are often known as mixed-use mortgages.
An example is a ground floor retail unit, which has living accommodation above.
Both individuals and companies can use these mortgages. This includes landlords or business owners looking to operate out of the commercial unit.
Some people may choose to live in the residential part of the property. This can help people, especially new/small business owners, save money on rent. It can also allow them to be closer to their business as it grows.
Our experts have helped many customers get these solutions, so we might be able to support you.
Common examples of semi-commercial properties
There are many types of semi-commercial properties. Some examples include:
- A flat above a shop – In many towns and cities it is common to have a retail store below a domestic residence. This can be considered to be a mixed-use property.
- Bed and breakfasts –As this property has both residential and commercial elements, it would be a mixed-use property. However, if the property is more than 40% residential, this may change what type of mortgage you can get.
- Flats above a pub – Many pubs have flats above them, which often the owner lives in. In this case, it would be a mixed-use property. See our guide to getting a mortgage to buy a pub to find out more.
- Restaurants or takeaways with residential units above –You will often find these types of properties in cities and towns along the main streets. These can also be classed as semi-commercial.
Our panel of specialist lenders has flexible product criteria, so we can help with most property types. Even if you think it is an unusual property, we may have the right solution for you.
What documents might I need to apply for a semi-commercial mortgage?
The documents you might need will vary. It will depend on the lender and the property you are looking to buy or remortgage.
However, here are some documents you may need:
- A business plan: A plan showing your business tasks, cash flow projections and growth plans.
- Property information: Documentation linked to the property. This could include the purchase agreement, title deed and valuation report.
- Financial statements: This includes your business statements, dating back at least three years. It may also include your personal financial statements.
- Bank statements & tax returns: This can include both business and personal documentation.
- Proof of identity and residency:This could be your passport or driving licence, and proof of your current address.
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What is the difference between a semi-commercial and commercial property?
Commercial properties are used for business purposes only. This could be warehouses, offices, or retail and hospitality spaces.
A semi-commercial property however has both residential and commercial uses. For example, a retail unit with apartments above them.
Why might you invest in a semi-commercial property?
Getting one of these properties can be a great investment. If you have always wanted to have your own business, it gives you the chance to do so.
If you were interested in renting it out in the future, you would have this option too. This opens you up to being able to make extra income.
Finally, if you are a business owner looking to save money, getting a mixed-use property can help. By using the property as both a workplace and a home, you can save money on rent.
However, getting this type of property requires time, money and effort. Therefore, it is best to research your options before you make any decisions.
What is the criteria for a semi-commercial mortgage and do I qualify?
To qualify for a semi-commercial mortgage, you will have to meet some criteria. Generally, each lender has their own standards. Due to this, you may find you might qualify with one lender and not another. This is why careful research before applying and making any decisions is key.
Lenders will look at your credit history, income, deposit, and the business experience you have to make a decision.
By working with us, you get access to a range of different lenders, so we may have a solution that meets your brief.
Our team will complete the research for you, giving you more time to focus on other things.
How much could I borrow with a semi-commercial mortgage?
Several factors may influence the amount you're eligible to borrow, such as your income, credit score, and the potential income of the property. Additionally, the lender you select will play a significant role in determining this amount.
We offer loans from £30,000 with no cap on the maximum loan size. Our experts will consider all the factors above to find you an affordable product.
How do I apply?
Applying for a semi-commercial mortgage is simple! Follow our three steps below and you will be well on your way:
- Decide how much you need to borrow and over what term;
- Tell our advisors by enquiring through email, chatting with us online or calling 0800 032 3535;
- Our experts will handle the rest, whilst keeping you updated at every stage.
Remember our advisors are just a phone call away. So should you need any support, they are ready to help.
