As there are so many potential variables, it’s advised to consult an advisor for a tailored answer on how a loan may be structured for the type of finance you need. Most semi-commercial mortgages are on variable rates and are quoted as a certain percentage over the base rate, in the same way a tracker residential mortgage would be, though semi-commercial mortgages on fixed rates are available for under £500,000 where the lender will take the risk on. ✔ Compare the best mortgages ✔ Quick, simple and easy. Larger loans will usually receive lower rates than smaller ones, for similar quality applications. He is widely respected in his field and regularly provides expert commentary for specialist trade publications, specialist business press as well as local and national press. By contacting us, or heading to our commercial mortgage comparison page, we will be able to give you an idea of costs based on your circumstances. Even if the property in question was 10% commercial and 90% residential, a semi-commercial mortgage would be required to purchase the property. Some lenders may offer you interest-only options, even if you plan to reside in the building, whereas other lenders won’t. Offices with flats above 4. That being said, it’s also presented an opportunity for those wishing... Commercial buy to let mortgages are considered to be a niche type of finance. Use this calculator to work out your monthly repayments. If you don’t plan to run a business from the property yourself, lenders will require a financial forecast of the potential rental returns that you aim to generate. If a property has both residential and commercial features, it’s classed as semi-commercial or mixed-use. The following property types are all classified as semi-commercial. This can be particularly useful for when you have funds tied up in other ventures that are generating an income. The Financial Conduct Authority does not regulate all of our products. If the figures inputted are incorrect, then the figures will be meaningless and of little help to you. Hair salons/beauticians with fl… Some lenders may offer longer mortgage terms than others and as a result, rates can have a vast difference. Be sure to shop around when trying to secure the right type of finance for your commercial ventures. Martin has been a mortgage advisor for over 15 years. Complete this page if the property is used for your own business purposes or place of trade (owner occupation). Remember, semi-commercial property is exempt from the 3% Stamp Duty Surcharge. Semi-commercial mortgage rates start from as low as 2.75% per annum. This is because the building itself may have shared aspects, such as roofing. Pubs with self-contained living accommodation 5. Thank you your enquiry. ✔ No impact to your credit score Your home may be repossessed if you do not keep up the repayments on a mortgage or any debt secured on it. But generally speaking, capital repayment applications are available for terms of 3-20 years, with some lenders allowing terms of up to 25 years. Commercial investment rates are usually slightly higher than mortgages for owner occupied properties. Depending on your circumstances, you may be offered an interest-only option, especially if your only aim is to invest. If you are looking to buy property at auction we can help you to raise the funds you need to complete on time., No mortgage (unencumbered) owned outright, Other Details About How the Property is Arranged, Outline of Lending Based on Semi Commercial Property, Development Funding and Bridging Facilities, Semi-Commercial interest rates from just 4.04%, Loans up to 75% of purchase price / property value, Generous rent cover calculation for investment properties, Interest only available for full term of the mortgage, Can also be used for Commercial, HMO and Multi-Unit properties, Purchase price (purchases) or property value (remortgages), What will the property rent at? ABC Finance Limited is authorised and regulated by the Financial Conduct Authority Registration No. As with the rates above, commercial investment mortgages that won’t fit the high street tend to be priced according to LTV. Examples of mixed-use properties would include, but are not limited to: Make an enquiry to speak to a commercial specialist. The hospitality sector has taken a huge hit due to the ongoing pandemic. A semi-commercial mortgage can be used for any tenure, whether freehold or leasehold. Commercial mortgage calculator Use our commercial mortgage calculator to gain clarity on what your financial boundaries and limits are likely to be. Each lender will have their own rules. Interest only tends to be available from 3-10 years – or even beyond this subject to a small loading to the interest rate. If a property has separate access for both its commercial and residential aspects, then some lenders may offer two separate mortgages. Commercial mortgages differ from traditional mortgages in that there are more items listed under the terms of the loan. For larger loans, the rate charged reduces as competition between lenders to secure your business increases. ✔ Safe, secure and confidential, ✔ No impact to your credit score Although the mortgage would be semi-commercial, it’s still treated as a commercial mortgage. Financial decisions should never be rushed, as the wrong deal could break your venture. If you make an enquiry on this website, then you agree that your information will be provided to a mortgage advisor who can provide advice tailored to your own individual circumstances.