Molo has unveiled its semi-commercial mortgage proposition for UK domestic borrowers who want to borrow small loan amounts, starting from £45,000.
The proposition has been designed to support semi-commercial cases involving freehold properties with residential units above commercial premises, including restaurants, newsagents and other mixed-use assets.
With loan sizes ranging from £45,000 to £3m, the range aims to give brokers a clearer route for placing smaller semi-commercial deals that can often fall outside traditional lending appetites.
Deals will be agreed up to 75% loan to value (LTV) for non-fire-risk properties and up to 65% LTV for fire-risk properties on a case-by-case basis.
The commercial element of the property must not exceed 40% of the total floor area.
The proposition is available on five-year fixed rate only, with rates currently starting from 6.55% at 75% LTV and 6.85% at 65% LTV.
Conversations you need to have with landlords before the Renters’ Rights Act
Sponsored by BM Solutions
Martin Sims (pictured), distribution director at Molo, said: “Semi-commercial has traditionally sat in an ‘in-between space’ for some borrowers and brokers. Cases are often too complex for standard buy-to-let underwriting, but at the same time, they do not necessarily warrant the heavier process and structure that goes along with large-scale commercial lending.
“There is often a tendency for some smaller semi-commercial cases to fall into a gap where the property itself is perfectly acceptable, but the available lending options are far narrower than brokers and borrowers expect. Often, the complexity of the process ends up outweighing that of the actual deal. This launch is about giving brokers a straightforward route for placing these cases.”
Last month, West One lowered rates on its semi-commercial mortgages, while Together launched a range of commercial and semi-commercial second charge deals.