The £7,200 a year trick mixed use property owners miss Mixed use buildings incur a higher mortgage rate than solely residential Around 7% for mixed use compared to around 5% for residential buy to let That is a difference of £600 per month on a £350,000 interest only mortgage That equates to a whopping £7,200 per year! But why are rates higher for mixed use? It’s because lenders see mixed use as a higher risk So what is this £7,200 a year trick I mentioned? All you need to do is: Sell off the commercial Split the title Mortgage the residential The mortgage company now sees the properties differently so you can take full advantage of the lower rates But what if you want to keep the commercial? Then split the title and keep them all Even though the commercial property is still there, it won’t be part of the same property/title, therefore the risk has ‘disappeared’ I think this is a nifty little thing to know What other ways can you think of to ‘side-skirt’ the system?

Posted by Sam Bastow at 2025-08-11 12:23:02 UTC