Semi-commercial Mortgage

Semi-commercial Mortgages Explained

Semi-commercial mortgages are property-backed loans designed for properties that feature both residential and commercial components. These mortgages can be used to purchase or remortgage a wide variety of mixed-use properties, such as shops with flats above or offices with attached living areas.

These loans are typically offered by commercial mortgage lenders and function similarly to commercial mortgages. The term “semi-commercial” applies to any property that combines both residential and commercial spaces.

In some cases, lenders may offer lower interest rates for semi-commercial properties compared to fully commercial ones. However, this often depends on the ratio of residential to commercial space within the property. Certain conditions, such as having only a single access point for both the residential and commercial sections, might require you to use full commercial rates, as some lenders will only provide those terms in such scenarios.