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Mixed use mortgages are designed for properties that combine both residential and commercial elements within a single structure or legal title. These types of properties don’t fall neatly into traditional mortgage categories, which is why they require more specialised mortgage lending solutions. Understanding what qualifies as mixed use is key to knowing whether this type of finance is right for your needs. Each property can have difficulties finding the right lender for your mixed use mortgage
Generally, a mixed use property will have:
To be considered “mixed use,” both parts typically need to be part of the same freehold title, although in some cases, properties with separate leases may still qualify depending on the lender.
Below are some common types of mixed use properties that lenders will typically consider:
One of the most common mixed use property types. A ground-floor shop (retail, hairdresser, takeaway, etc.) with one or more flats above. The flats may be owner-occupied or rented out separately.
Example: A newsagent on the ground floor and two flats upstairs let to tenants.
A guesthouse or B&B where part of the property is used for paying guests, and another part is reserved for the owner’s private residence.
Example: A 5-room B&B in a coastal town with a 2-bedroom apartment for the owner.
This might be a residential property with a mechanic’s garage, art studio, or other workspace physically connected.
Example: A bungalow with an adjoining workshop used for a small furniture-making business.
A building that contains office space and a flat or maisonette. These are increasingly popular in city fringe locations or for small professional practices.
Example: An accountant’s office on the ground floor with a rented studio flat above.
Rural mixed use examples often include a farmhouse with agricultural buildings, holiday lets, or even commercial lets like cafés or farm shops.
Example: A farm property with a farmhouse, converted barn for holiday rentals, and a roadside farm shop.
Pubs and inns often have staff accommodation or a flat for the landlord included above or behind the commercial area.
Example: A freehold public house with a 3-bed flat above for the operator’s family.
Not all lenders will finance every type of mixed use property. Some may specialise in retail and residential combinations, while others are more suited to leisure or rural commercial properties. Key considerations include:
A strong mortgage broker will help match your property type to the right lender to maximise your chances of approval and ensure the terms are competitive.
| Property Type | Residential Element | Commercial Element |
|---|---|---|
| Shop with flat above | Flat(s) upstairs | Retail shop (newsagent, etc.) |
| B&B guesthouse | Owner suite | Multiple guest rooms |
| House with attached studio | Main residence | Workshop / artist studio |
| Office with upstairs apartment | Let-out flat | Ground-floor office space |
| Farm property with lettings | Farmhouse | Holiday lets / farm shop |
| Pub with landlord accommodation | Flat above or behind pub | Public house / restaurant |
If you’re unsure whether your property meets the criteria for a mixed use mortgage, our advisers can help. We’ll assess the layout, planning classification, and business use to determine the best route forward, whether that’s a mixed use mortgage or an alternative like semi-commercial bridging finance.
If you’re unsure where to start, let us guide you through. Use our quick enquiry form and we’ll be in touch to discuss the best options for your situation.
01206 544 333
Our expert team of mortgage brokers are here to guide you through every stage of the process.
