The proposition has been designed to support semi-commercial cases involving freehold properties with residential units above commercial premises, including restaurants, newsagents and other mixed-use assets.

Loan sizes range between £45,000 to £3 million and are available up to 75% loan-to-value (LTV) for non-fire risk properties and up to 65% LTV for fire-risk properties on a case-by-case basis.

The commercial element must not exceed 40% of the total floor area.

The proposition is available on five-year fixed rate products only, with rates currently starting from 6.55% at 75% LTV and 6.85% at 65% LTV.

Molo distribution director Martin Sims says: “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.”

“There is often a tendency for some smaller semi-commercial cases to fall into a gap where the property itself is perfectly acceptable, but the available lending options are far narrower than brokers and borrowers expect.”

“Often, the complexity of the process ends up outweighing that of the actual deal. This launch is about giving brokers a straightforward route for placing these cases.”