Keystone Property Finance has moved into the semi-commercial mortgage market, giving landlords another route into mixed-use and higher-yield stock as some investors look beyond standard buy-to-let.
The lender’s new range starts from 7.14% and is available on two-year and five-year fixed terms for purchase and remortgage cases up to £2m. Keystone said lending would cover the whole property while affordability would be assessed solely on the residential rental income.
That is a notable shift because it points to a lender betting that more landlords want diversification rather than just cheaper vanilla finance.
Semi-commercial push widens funding for mixed-use landlords
Keystone said the range will be available on standard semi-commercial units, HMOs, MUFBs and holiday lets, with access for limited companies, trading limited companies, special purpose vehicles, LLPs and individual borrowers.
Elise Coole, managing director at Keystone Property Finance, said landlords were increasingly looking beyond traditional buy-to-let in search of stronger yields and broader diversification, while semi-commercial remained underserved relative to demand.
This follows Residential Landlord’s earlier coverage of Molo expanding mixed-use finance for smaller complex deals, which showed lender appetite creeping further into specialist territory. Keystone’s move reinforces that picture from another direction – not just more complex underwriting, but a clearer attempt to meet landlords where yield-driven demand is already moving.
Residential Landlord has also reported how landlords are shifting towards HMOs and mixed-use assets when standard expansion looks less compelling. The new range fits that pattern closely. Investors who still want growth are often doing it through different stock rather than more of the same stock.
The timing matters. Standard buy-to-let pricing has improved in recent weeks, but margin pressure, licensing costs and tax drag still make some landlords question whether ordinary single-lets offer enough reward for the effort. Semi-commercial and mixed-use properties can provide a stronger yield story, even if they come with more complexity and a thinner lender field.
Higher yield opportunities still come with sharper edges
That does not make this a simple answer. Semi-commercial assets often carry more valuation risk, narrower resale demand and more management work than plain residential units. A lender launch can widen access, but it does not remove the need for sharper due diligence on location, tenant mix and exit strategy.
Still, Keystone’s move is a useful signpost. Specialist lenders do not add new categories unless they see real broker demand behind them. For landlords, that suggests the search for stronger returns is broadening from a niche strategy into a more established part of the market.
Keystone Property Finance has outlined its latest specialist lending proposition for landlords and brokers.
Opinion
When landlords start hunting yield in mixed-use and semi-commercial stock, it usually says something about the limits of the mainstream market. Keystone’s launch may open doors, but it also highlights a harder truth: many investors no longer think standard buy-to-let does enough on its own.
