Molo has launched a semi-commercial mortgage range aimed at smaller mixed-use cases, giving landlords another route into properties that often sit awkwardly between mainstream buy-to-let and full commercial finance.
Semi-commercial range targets smaller mixed-use borrowing
The new proposition covers freehold properties with residential units above commercial space, including restaurants, newsagents and similar mixed-use assets. Loan sizes start at £45,000 and run up to £3m, with five-year fixed rates from 6.55% at 75% loan to value and 6.85% at 65% loan to value.
Molo said the commercial element must account for no more than 40% of total floor area. The lender will consider up to 75% loan to value for non-fire-risk properties and up to 65% for fire-risk cases assessed individually.
Martin Sims, 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.”
That pitch reflects a wider shift in landlord borrowing. Investors who still want to expand are looking harder at more specialised stock, especially where plain vanilla buy-to-let margins have tightened.
This follows Residential Landlord’s coverage of lenders widening buy-to-let choice, which showed lenders re-opening higher loan-to-value options as competition builds. Molo’s move pushes that trend further into mixed-use territory rather than simply repricing standard landlord loans.
It also fits with Residential Landlord’s earlier report that landlords were shifting towards HMOs and mixed-use assets in search of stronger returns. The latest launch suggests lenders still see enough demand in that space to build more tailored propositions around it.
Product details have also been reported by Property Reporter.
What the launch means for landlord strategy
For landlords, the significance is less about one lender and more about market direction. Smaller mixed-use cases are often awkward to fund, particularly where deal size is modest but the property falls outside standard residential criteria. A lender willing to price and package that gap more clearly could help investors who want to diversify without moving into large-scale commercial exposure.
- Check whether the commercial share stays within the 40% limit
- Stress-test five-year fixed pricing against likely rental income
- Review fire-risk treatment before assuming maximum borrowing
- Use specialist advice where title, lease or use class issues are involved
Opinion
The mixed-use market has long been full of deals that look attractive until finance gets messy. Molo is trying to make that corner of the market easier to access, but landlords should not mistake a clearer route for easy money. Complex stock can still punish weak due diligence faster than standard buy-to-let ever will.
