Semi-commercial mortgages in brief
A semi-commercial (or mixed-use) mortgage finances a building that is partly residential and partly commercial: a shop with a flat above, offices with flats upstairs, a pub with living accommodation. As at 2 November 2026, 11 lenders on our panel lend on semi-commercial property, up to 75% loan to value with most and up to 77.5% with a few, to individuals and limited companies, on loans from £50,000. Every case is assessed individually and is subject to the lender's underwriting and valuation.
| Deal | Lowest rate | Cheapest overall | True cost* | Rent per £100k** |
|---|---|---|---|---|
| 2-year fix75% LTV | 6.01%2% fee | 6.01%2% fee | 7.13% | £626 |
| 5-year fix75% LTV | 6.48%2% fee | 6.48%2% fee | 7.01% | £675 |
*True cost: yearly cost over the fixed period with the fee added, on a £200,000 loan at 75% LTV. The lowest rate often carries a big fee; the cheapest overall is the one we'd look at first. **Monthly rent needed per £100,000 borrowed for the cheapest overall deal at 125% cover (limited company or basic-rate; higher-rate taxpayers are usually tested at 145%). Rates as at 2 November 2026, from lenders' guides; they change often and can be withdrawn without notice. Every case is subject to the lender's underwriting.
What counts as semi-commercial
Lenders split mixed-use property by how much of the value is residential:
| Residential share of value | Usually financed as | Typical max LTV |
|---|---|---|
| More than 50% | Semi-commercial mortgage | 75% |
| 60% or more of value and rent | Semi-commercial, with the widest choice of lenders | 75% |
| 50% or less | Commercial mortgage | 70–75% |
Most lenders on our panel want the residential part to be more than half the value, and some want 60% of both the value and the rent. Separate access to the flats and the commercial unit helps, and some lenders take freehold only.
How much you can borrow
Two limits apply, and the lower one sets the loan:
- Loan to value: up to 75% with most lenders on our panel, 77.5% with a few.
- The rent test: the rent must cover the interest by 125% (limited companies and basic-rate taxpayers) or 145% (higher-rate taxpayers) at the lender's stress rate. Some lenders use 120% debt service cover instead.
- Which rent counts: some lenders count the commercial rent as well as the flats; others assess on the residential rent only. A long, strong commercial lease widens the choice.
Example: a £450,000 shop with two flats above, 75% LTV is £337,500. At a 6.48% 5-year rate and 125% cover, the counted rent needs to be about £2,280 a month. If the lender counts only the flats' £1,800, the rent supports about £266,700 instead. That gap is why the choice of lender matters as much as the rate.
What lenders look at
- The commercial lease: length, rent, the tenant's covenant and whether the unit is let or vacant.
- The flats: self-contained, with their own access, kitchen and bathroom, and lettable on standard tenancies.
- Valuation: on bricks and mortar, or on the investment yield of the combined rent.
- Use: uses such as takeaways, pubs or late-night venues can narrow the lender list or lower the LTV.
- You: experience as a landlord or in business helps, though not every lender needs it.
Living in the flat yourself
If you or a close family member will live in the flat, the mortgage can be regulated, with FCA mortgage rules applying, and fewer lenders offer it. Tell us at the start so we search the right lenders.
Frequently asked questions
What is a semi-commercial mortgage?
A semi-commercial mortgage is a loan on a building that is part residential and part commercial, such as a shop with a flat above or offices with flats upstairs. Lenders on our panel usually treat it as semi-commercial when the residential part is more than half the value. It is priced between a buy-to-let and a commercial mortgage.
What are semi-commercial mortgage rates?
As at 2 November 2026, the cheapest 5-year semi-commercial fix on our panel at 75% LTV is 6.48% with a 2% fee, 7.01% a year on true cost with the fee included. The cheapest 2-year fix is 6.01% with a 2% fee. Rates start from 5.59% at lower LTVs. Rates change without notice; see the live table on this page.
How much can I borrow on a semi-commercial property?
Up to 75% of the value with most lenders on our panel, and up to 77.5% with a few, case by case. The rent must also pass the lender's test: usually 125% interest cover for limited companies and basic-rate taxpayers, 145% for higher-rate taxpayers, and some lenders use 120% debt service cover. The calculator on this page works out both limits.
What counts as semi-commercial property?
A building with both residential and commercial parts on one title: a shop, café, office or surgery with one or more flats above or behind. Most lenders on our panel need the residential part to be more than 50% of the value, and some need 60% of both value and rent. Where the commercial part is bigger, it is usually a commercial mortgage instead.
Do lenders count the commercial rent?
Some do and some do not. Several lenders on our panel assess affordability on the residential rent only; others add the commercial rent, sometimes only where the lease is long enough. That choice can change how much you borrow, so it is one of the first things we check.
Can commercial mortgages be used for semi-commercial buildings?
Yes, a commercial mortgage can finance a semi-commercial building, but where the residential part is more than half the value, specialist semi-commercial lenders usually offer a higher LTV and a lower rate. Where the commercial part is larger, a commercial mortgage is normally the right loan.
Is a semi-commercial mortgage regulated?
Usually not, when the whole building is an investment let to tenants. It can be a regulated mortgage if you or a close family member will live in the residential part, and then FCA mortgage rules apply. DAS Finance is authorised and regulated by the Financial Conduct Authority (FCA number 912717).
Can a limited company get a semi-commercial mortgage?
Yes. Lenders on our panel lend to limited companies, including trading companies buying their own premises with a flat above and property investment companies (SPVs), as well as to individuals. Each case is assessed individually and is subject to the lender's underwriting and valuation.