The change applies to cases over £5m where the commercial element makes up no more than 20% of the overall property.
The move is designed to support brokers structuring mixed-use deals with limited commercial use, and reflects increasing demand for residential-heavy investment properties.
The enhancement is part of HTB’s focus on structured lending and deal-by-deal underwriting.
Rising demand for mixed-use property
Where the commercial income is not required to meet the interest cover ratio (ICR), brokers can now benefit from standard BTL rates.
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Andrea Glasgow (pictured), sales director for specialist mortgages and bridging finance at HTB, said: “We’ve seen a clear rise in demand for mixed-use property, particularly where the commercial part is modest but contributes to a strong overall return.
“These are often flats above shops or mixed-use assets where the commercial use is stable and predictable, such as a convenience store or takeaway. The structure is sound, the return is strong, and the pricing should reflect that. This change brings more flexibility. As always, brokers have direct access to the underwriter and the support of a team that knows how to get these deals moving.”
Earlier this month, the lender increased the maximum lending limit per customer from £25m to £35m in its specialist mortgage and development finance divisions.
