Semi-commercial investment mortgages
Buy-to-let finance for mixed-use property held as an investment, sized on the rent from the commercial and residential tenants rather than your personal income.
What a semi-commercial investment mortgage is
A semi-commercial investment mortgage funds a mixed-use property you hold as an investment and let to tenants, rather than one you occupy yourself. It is the semi-commercial equivalent of a buy-to-let mortgage: the loan is sized on the rental income the property produces, not on your salary or trading profit. The asset might be a shop let to a retailer with a flat above let to a residential tenant, or an office building with let upper-floor residential units.
Because the loan rests on the property's income, lenders focus on the security of the rent. They look at the commercial lease, the covenant strength of the commercial tenant, the residential tenancy and the resilience of the two income streams. This makes it a commercial buy-to-let in substance, and most of the desks that fund it are specialist semi-commercial lenders rather than high street residential lenders.
We are a finance arranger and introducer, not a lender. Lending on an investment mixed-use property held for letting is unregulated lending, outside the FCA's regulated mortgage perimeter, because no individual borrower personally occupies the residential element.
- Funds mixed-use property held to let, not to occupy
- The semi-commercial equivalent of a buy-to-let mortgage
- Sized on commercial and residential rental income
- Commonly held in a limited company or SPV
- Unregulated investment lending
Indicative terms
- Loan to valueUp to 70 to 75% of value
- Rate6.5 to 8.5% a year (indicative)
- DepositTypically 25 to 30%
- Term5 to 25 years
- Affordability125 to 140% ICR on combined rent
- StructureOften a limited company or SPV
Indicative only. Terms vary by lender, property and borrower and are not an offer of finance.
Who it suits
- Landlords building a mixed-use investment portfolio
- Investors letting a shop and flat to separate tenants
- Limited company and SPV borrowers
- Buy-to-let landlords moving into semi-commercial
Discuss semi-commercial investment mortgage
A view on lenders and likely terms within one working day.
How investment lending on mixed-use property works
Review the income
We review the commercial lease, the residential tenancy and the two rental streams to establish the income the loan will rest on.
Stress the affordability
We test the combined rent against the lender's stressed interest cover ratio, commonly 125 to 140 percent, to size the maximum loan.
Place the case
We approach specialist investment lenders such as Shawbrook, InterBay Commercial, Aldermore and Paragon that price semi-commercial buy-to-let competitively.
Valuation and drawdown
A commercial valuation confirms value and market rent, and we manage the case through to offer and completion.
Who qualifies for investment lending
Semi-commercial investment lending suits experienced and first-time landlords alike, individuals and limited companies. Lenders assess the rental income and its security above all, then the borrower's experience, credit history and the wider portfolio. A property let to a stable commercial tenant on a full repairing lease with the residential part occupied is the strongest case. Many investors hold these assets in a special purpose vehicle for tax and portfolio reasons, which specialist lenders fund readily, usually with directors' personal guarantees. A vacant commercial unit is fundable but sized on the residential income until it lets.
How much an investor can borrow
Lenders advance up to 70 to 75 percent of the valuation, sized on the combined commercial and residential rental income and stressed at an interest cover ratio of typically 125 to 140 percent. The stronger and more secure the two rental streams, the closer to the maximum loan to value the income supports. Where you hold other property, some lenders will assess affordability across the wider portfolio, and we can arrange that alongside finance for the individual asset.
Rates and fees on investment lending
Investment rates on semi-commercial property run from around 6.5 to 8.5 percent a year for mid-2026, with a lender arrangement fee of roughly 1.5 to 2 percent, a commercial valuation fee and legal costs on both sides. Limited company structures may carry slightly higher rates than personal borrowing at some lenders, offset by the tax treatment many investors prefer. These figures are indicative and not an offer of finance. We present the full annual cost of each option for comparison.
Semi-commercial investment against residential buy-to-let
A residential buy-to-let mortgage funds wholly residential property and cannot lend against a building with a trading commercial unit. A semi-commercial investment mortgage is a commercial buy-to-let in substance, funding the mixed-use asset and sized on both rental streams. It typically prices a little above residential buy-to-let but below a pure commercial investment loan, and the two income streams give it more resilience to a void than a single residential let. For landlords diversifying beyond pure residential, it is the natural next step.
Semi-commercial investment mortgage: common questions
Can you get a buy-to-let mortgage on a commercial property?
Not a standard residential buy-to-let. For a mixed-use property with a commercial unit and residential accommodation you need a semi-commercial investment mortgage, which is a commercial buy-to-let sized on the combined commercial and residential rent.
What is a semi-commercial mortgage?
A loan secured against a property with both a commercial and a residential element under one title. Held as an investment and let to tenants, it is funded with a semi-commercial investment mortgage sized on the property's rental income.
What is the deposit for a semi-commercial investment mortgage?
Usually 25 to 30 percent of value, since lenders advance up to 70 to 75 percent loan to value. Strong, secure rental streams support the higher end of the range.
What is the 3 7 3 rule?
It is not a standard test in UK semi-commercial lending. The figures that drive an investment loan are the interest cover ratio, commonly 125 to 140 percent, the loan to value, up to 70 to 75 percent, and the security of the commercial and residential tenancies.
Can I hold a semi-commercial investment in a limited company?
Yes, and many investors do. Specialist lenders such as Shawbrook, InterBay Commercial and Paragon fund limited company and SPV ownership readily, usually with personal guarantees from the directors.
Discuss semi-commercial investment mortgage
Send us the property details and we will come back with a view on lenders and likely terms within one working day.