Mixed-use mortgage rates
What a mixed-use mortgage costs in mid-2026, and how the commercial and residential mix shapes the rate.
Mixed-use mortgage rates run from around 6.5 to 8.5 percent a year in mid-2026, the same band as semi-commercial mortgages, because a mixed-use mortgage is a semi-commercial mortgage. Owner-occupiers sit toward 6.0 to 7.5 percent. The rate is driven by loan to value, the income mix and the borrower.
At a glance
- Investment rate6.5 to 8.5% pa
- Owner-occupier6.0 to 7.5% pa
- Loan to valueUp to 70 to 75%
- Same asSemi-commercial rates
Mixed-use mortgage rates in 2026
A mixed-use mortgage and a semi-commercial mortgage are the same product: a commercial loan against a property that mixes a commercial part with a residential one. The rates follow the same bands.
| Type | Indicative rate (mid-2026) |
|---|---|
| Owner-occupier mixed-use | 6.0 to 7.5% pa |
| Investment mixed-use | 6.5 to 8.5% pa |
| Mixed-use bridging | 8.5 to 11% pa |
These are indicative, typical for mid-2026, not firm quotes from a named lender.
Because the two terms describe the same product, a rate quoted as a semi-commercial rate and one quoted as a mixed-use rate are the same thing. There is no separate, cheaper mixed-use product hiding behind the name.
How the commercial and residential split affects the rate
The mix of income shapes pricing. A larger, well-let residential element diversifies the rent and can pull the rate toward the keener end, because the lender is less exposed to a single commercial tenant.
A property weighted heavily to a specialist or volatile commercial use can price higher, or draw a lower loan to value, because the income is more concentrated.
A mixed-use asset earns from both a commercial and a residential tenant. That diversification is part of why these deals can price competitively.
What drives a mixed-use mortgage rate
- Loan to value: a lower loan prices keener
- The strength and documentation of the combined rent
- The commercial covenant and the use class
- Owner-occupier versus investment
- The borrower and the structure, often a limited company
- Fixed versus variable pricing
Loan to value and the rate
Mixed-use lending sits up to a 70 to 75 percent loan to value, so a deposit of 25 to 30 percent is the norm. The lower you keep the loan to value, the tighter the margin a lender will offer.
| Loan to value | Effect on rate |
|---|---|
| Up to 60% | Keenest pricing |
| 60 to 70% | Mid-band |
| 70 to 75% | Toward the upper band |
Limited company and portfolio rates
Most investment mixed-use lending is done through a limited company or SPV. Lenders are well set up for it, and SPV borrowing does not carry a meaningful rate penalty over personal borrowing on these assets.
Portfolio landlords holding several mixed-use and buy-to-let properties can sometimes access relationship pricing across the book, which we explore where the portfolio supports it.
Fees and the all-in cost
Beyond the rate, budget for an arrangement fee, often 1.5 to 2 percent, a valuation, and legal fees on both sides. We set out the all-in cost of every offer so two deals can be compared on the true number, not the headline rate.
A keener headline rate with a heavier arrangement fee can cost more over a short hold than a slightly higher rate with a lighter fee. The comparison only works once both are reduced to a single all-in figure across the period you expect to hold the loan.
How rates compare with a residential mortgage
A mixed-use mortgage costs more than a residential mortgage on a comparable home, because it is a commercial loan priced on the asset rather than a salary, and because the commercial element carries more risk than a pure dwelling.
The trade-off is access. A residential lender will not fund a property with a genuine commercial part, so the mixed-use rate is the price of borrowing against an asset that a residential mortgage cannot reach at all. Against that, the diversified income and the non-residential stamp duty treatment often make the numbers work for an investor.
How to secure the best rate
- Bring more deposit to lower the loan to value
- Document the combined rent and the commercial covenant well
- Decide fixed or variable to match your view on rates
- Use the right structure for the asset and your tax position
- Run the case across the whole lender panel
Each of these is a lever you control before going to market. Together they are usually worth more to the final rate than the difference between one lender's published figure and another's.
- Mixed-use mortgage
- Another name for a semi-commercial mortgage, secured against a property combining commercial and residential use.
- Loan to value
- The loan as a percentage of the property's value; a lower figure usually means a keener rate.
Mixed-use mortgage rates: common questions
What are mixed-use mortgage rates in 2026?
Around 6.5 to 8.5 percent a year for investment deals and 6.0 to 7.5 percent for owner-occupiers, the same bands as semi-commercial mortgages, because a mixed-use mortgage is a semi-commercial mortgage.
Why is a mixed-use mortgage rate higher than a residential one?
Because it is a commercial loan, priced on the asset and its income rather than a salary. The trade-off is access to finance against a property a residential lender will not fund.
Does the commercial and residential split change the rate?
Yes. A larger, well-let residential element diversifies the income and can pull the rate keener, while a heavily commercial or specialist use can price higher or draw a lower loan to value.
Can a limited company get a mixed-use mortgage?
Yes, and most investment mixed-use lending is done through a limited company or SPV, without a meaningful rate penalty over personal borrowing on these assets.
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