Mixed-use properties are among the most common specialist mortgage enquiries. A maisonette above a takeaway, a converted pub with flats, or an office building with a residential unit on top — all fall into a grey area that frustrates borrowers and confuses lenders.\n\nWhat Counts as Mixed-Use — Any property that combines residential and commercial use under one title. The most typical example is a flat (or flats) above a shop, restaurant, or office. Other examples include live-work units, pubs and inns with living accommodation, farms with a residential farmhouse and commercial buildings, and converted churches or schools with both uses.\n\nResidential vs Commercial Classification — The percentage split determines how lenders classify the property. If the residential element exceeds 40% to 60% of the total floor area (threshold varies by lender), some lenders treat the entire property as residential. This typically means better rates, higher LTV, and more lender options. If the commercial element dominates, the property is treated as commercial, with lower LTV (60-70%), higher rates, and a smaller lender pool.\n\nStamp Duty Advantage — Mixed-use properties attract commercial stamp duty rates rather than residential rates. Commercial rates are significantly lower at higher price points. A property costing 400,000 attracts 14,500 in residential SDLT but only 9,500 in non-residential SDLT. The additional property surcharge of 5% also does not apply to mixed-use purchases. This stamp duty advantage makes mixed-use properties attractive to investors.\n\nLender Options — For properties that are predominantly residential: mainstream lenders like Halifax, Nationwide, and NatWest may consider them, particularly if the commercial element is small. Specialist lenders including Aldermore, Shawbrook, Together Money, and Kent Reliance have dedicated mixed-use products. For properties that are predominantly commercial: commercial mortgage departments of high-street banks, plus specialist commercial lenders. Rates and terms vary widely, so broker advice is essential.\n\nIncome Assessment — If you will occupy the residential part and run a business from the commercial part, the lender assesses both your personal income and business viability. If the commercial element is let to a third party, the rental income supports affordability. Lenders assess tenant covenant, lease terms, and whether the business type affects the property's value or insurability.\n\nInsurance — Mixed-use properties need combined commercial and residential buildings insurance. Some standard residential insurers will not cover mixed-use. Specialist brokers like Towergate, Hiscox, and Axa Commercial can arrange appropriate cover.