Semi-Commercial Mortgages

When looking for a new property to purchase, there are many things to consider. One of the most important is finding the right mortgage. Many different types of mortgages are available, each with its advantages and disadvantages. Here, we will look at semi-commercial mortgages – what they are, how they work, and how they can benefit you when buying property.

A semi-commercial mortgage is a type of mortgage used to purchase a property that has both residential and commercial use. This type of mortgage is typically used to buy mixed-use properties, which are zoned for residential and commercial use. Semi-commercial mortgages usually have higher interest rates than residential mortgages. This type of mortgage is typically used by investors & business owners looking to purchase a property with both commercial and residential units.

Yes, semi-commercial mortgages are more expensive than residential ones. The reason is that lenders consider them a higher risk, so the interest rates are higher to offset this risk. Additionally, semi-commercial properties tend to be larger and more complex than residential properties, so they have more costs.

Yes, semi-commercial mortgage rates are available through some high street banks. However, it is always worth speaking with a broker who would be able to let you know of other lending options from the market.

If you have bad credit registered, such as defaults & county court judgements you will struggle to get borrowing from high street lenders, however there are specialist lenders available through mortgage brokers who can help clients obtain a bad credit commercial mortgage.

Depending on the lender and the deals complexity, it can take anywhere from a few weeks to a few months to arrange a semi-commercial mortgage.

You will need to provide various documents and forms to the lender. This will typically include company accounts, bank statements, personal tax returns, proof of identity and other documentation detailing your income, assets & liabilities. The lender will also need information on the property and what solicitor you will be using for the legal work.

The costs involved will vary from lender to lender, however here is a guide to what fees you may be charged:

• Valuation Fee – This is payable upfront and is typically more expensive when compared to a standard residential mortgage valuation.
• Lender Arrangement Fee – This can range from a flat fee to a percentage of the amount being borrowed.
• Legal Fees – This depends upon who you use. Please be aware that some lenders only allow conveyancers who are on their ‘panel’. Stamp duty may also be payable if you are purchasing a property – so best to seek advice in this area.
• Broker Fee – This maybe charged – it all depends upon the transaction.

When you are provided with a quotation that should clearly detail what fees are payable and when due.

If you are looking into taking out a mortgage, but you don’t have the time, energy or experience to find the right deal, help is at hand.

Call The Money Hub Limited on 0203 725 5830 and speak to one of our highly specialised and dedicated commercial mortgage Advisors or you can complete an enquiry form which will allow you to schedule a call time.