Posted February 11, 2020

Semi-commercial mortgages explained: things you need to know


A semi-commercial mortgage is available for Limited Companies, partnerships and individuals who want to purchase a property which has both residential and commercial elements.

Even if only a small percentage of your building is for commercial purposes, you will need to arrange a semi-commercial mortgage instead of a residential one. This means that lenders will assess the potential profitability of your business. If you’re planning on running your business from the building, lenders may want to see your business plan and if you’re planning on leasing the space out, the lender will need a financial forecast of the potential returns generated.

What properties are classified as semi-commercial?

Some of the most common properties you would require a semi-commercial mortgage for include:

  • Shops, offices and restaurants with a flat or living space above them;
  • Pubs with self-contained living space;
  • Guesthouses or bed and breakfasts with accommodation for the owner;
  • Farms, attractions and holiday parks with residential accommodation.

Do I need a semi-commercial mortgage?

A semi-commercial mortgage combines two types of mortgage: residential and commercial. As they are treated as a commercial mortgage, only specialist commercial lenders will be able to provide you with the finance you need.

How much can I borrow on a semi-commercial property?

Available for both freehold and leasehold properties, lenders will typically lend up to 75%.  If, however, you have equity in other properties, some lenders will consider this as additional security and may lend up to 100%. You will also have to pay commercial stamp duty rates on purchases above £150,000.

What options are available for semi-commercial mortgages?

To acquire a semi-commercial mortgage, both investment and owner-occupied mortgages are available:

  • Owner-occupier mortgage: If you are planning on using the property for your own business.
  • Buy-to-let mortgage: Buying a property with the intention of letting it out.

How long does the process take?

Semi-commercial mortgages can usually be completed in around 6-12 weeks from the initial application, but timescales can vary depending on individual circumstances.

Finance 4 Business

It is important that you find the best lender for your own financial needs. When sourcing a semi-commercial mortgage, there is a range of options available. This can make the whole process seem lengthy and complicated, especially if you are already running a business.

Using a specialist commercial mortgage broker such as Finance 4 Business will simplify the entire process for you. Not only this, but we also have access to commercial mortgages which are not available on the high-street.

We take the time to fully understand your business and expectations for the semi-commercial property. With a multitude of options available and access to specialist finance options not widely available, Finance 4 Business can help. Save time by calling a commercial mortgages expert on 0121 309 0444 or emailing