Beverley Building Society is aiming to expand its reach in the mixed-use, (semi-commercial) mortgage market.
The mutual is offering ‘mixed-use’ mortgages, catering for the changing role people’s homes play in their lives, whether they are operating an existing business from home, or considering doing so and need to adapt their residential property.
Beverley says its latest deal recognises the increasing ‘hybrid homes’ trend – accelerated by the Covid-19 pandemic – which is causing many people to re-think their working patterns and career choices.
The society will consider a range of semi-commercial properties, making individual decisions based on their location and the percentage of residential use.
Examples might include extensions, garages or other outbuildings converted or already used for commercial purposes; annexes let as holiday homes, small office-based enterprises or established small shops, post offices, workshops or cafés attached to their living accommodation.
The product has a rate of 3.49% (a three-year discounted rate of 1.50% off the Standard Variable Rate currently 4.99%). There is a fee of 1% of the loan amount and is available up to a maximum LTV of 75% LTV (capital & interest repayment) or 65% LTV (interest-only).
The property must have at least 40% residential usage and be fully owner-occupied.
Graham Carter, the Society’s head of lending, said: “We have in the past assisted many people with semi-commercial mortgages but have recently seen more and more people working from home and looking to relocate their established businesses there.
“Drivers for this trend seem to be achieving a better work/life balance and, at the same time, saving on the considerable costs associated with renting commercial premises.
“Our mixed-use mortgages are very much aimed at homeowners where their residential properties have an element of commercial usage.”