Commercial lending is assessed on a different basis from residential mortgages entirely, whether that's a business's trading accounts, a tenant's covenant strength, or a property's own rental cover. These guides start from where most residential investors are most likely to make the jump.
Who this hub is for
Most of the guides on Poqet cover residential property: buy-to-let, first-time buying, remortgaging, and personal ownership. This hub is for people who are asking whether commercial property is worth adding to that — or who already own it and want to understand how the lending and tax mechanics actually work.
You don't need to be a large investor to use these guides. Mixed-use property in particular — a shop with a flat above, or a converted building with both commercial and residential units — sits at the boundary between the two worlds and often catches out buyers who assume residential rules apply.
Commercial, residential and semi-commercial: the practical difference
The distinction isn't just about what a building looks like. It shapes how it's valued, which lender will consider it, what stamp duty applies, and how income from it is taxed.
Residential property, including standard buy-to-let, is valued primarily on comparable sales and assessed by personal income. Commercial property — whether an office block, warehouse, retail unit or other business premise — is typically valued on its income yield. The lender looks at whether the rent the building generates covers the mortgage, using a metric called the Debt Service Coverage Ratio (DSCR), rather than your personal salary.
Semi-commercial and mixed-use property falls between the two. The split between commercial and residential floor area determines which rules take precedence, and even small differences in that ratio can change both your stamp duty bill and who will lend to you. Our Semi-Commercial Property and Mixed-Use Mortgages guide explains this threshold in detail.
How the guides here fit together
If you're starting out, the Semi-Commercial guide is the most practical entry point for buyers who already own residential property and are looking at mixed-use buildings. If you're looking at owner-occupier or investment commercial property in its own right, the Commercial Mortgages guide covers the DSCR affordability logic lenders use and the difference between the lender tiers you'll encounter.
When to get professional advice
Commercial and semi-commercial transactions involve decisions that go beyond what an educational guide can responsibly address: lease structures, tenant covenant quality, planning use class, and commercial property valuations all require professional assessment. These guides are intended to help you understand the landscape before you engage a specialist broker or solicitor — not to replace them. Our Mortgage Broker Resource Centre explains how to find a broker with genuine commercial lender relationships.
Frequently asked questions
I'm an existing residential landlord, where should I start with commercial property?
Semi-commercial, mixed-use property is the most natural entry point, since it shares some underwriting logic with residential buy-to-let while introducing commercial-specific factors like tenant covenant and lease length. Our Semi-Commercial guide is built specifically for that transition.
Do I need a different broker for commercial property than for residential?
Generally yes, or at minimum a broker with genuine commercial lender relationships, since the lender panel and underwriting criteria for commercial and semi-commercial mortgages differ meaningfully from residential buy-to-let. See our Mortgage Broker Resource Centre for how to find and vet one.
About the author
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