Hampshire Trust Bank (HTB) is applying standard BTL rates on qualifying semi-commercial loans, in an update of its specialist mortgage proposition.
This applies to cases over £5m where the commercial element makes up no more than 20% over the overall property.
Aldermore has made this change to support brokers structuring mixed-use deals with limited commercial use.
This comes in response to greater market demand, as properties with minimal commercial content - such as good floor retail or takeaway units below residential spaces - are becoming popular with investors, according to Aldermore.
“We’ve seen a clear rise in demand for mixed-use property, particularly where the commercial part is modest but contributes to a strong overall return,” said Andrea Glasgow, sales director of specialist mortgages and bridging finance at HTB (pictured above).
“These are often flats above shops or mixed-use assets where the commercial use is stable and predictable, such as a convenience store or takeaway.
“The structure is sound, the return is strong, and the pricing should reflect that.
“This change brings more flexibility.
“As always, brokers have direct access to the underwriter and the support of a team that knows how to get these deals moving.”
