Your Business and Industry
The rise and rise of the mixed-use mortgage
Diversification has always been a key word for any successful business operating across the mortgage arena, in a market which has successfully navigated its way through regulation, the credit crunch, increased regulatory scrutiny, the pandemic and the infamous mini-budget.
Throughout the last decade, landlords have endured and prospered through these ups and downs, and in more recent years we’ve seen the increasing professionalisation of the PRS develop again, with more landlords now focusing on highly strategic portfolio mixing.
MUBs & Large HMO’s
It's evident that landlords have had to carefully examine the performance and potential of individual properties within their portfolios to determine their future. This has led to an uptake in demand for higher-yielding assets such as Houses in Multiple Occupation (HMOs), Multi-Unit Freehold Block (MUFBs) and holiday lets.
Why use Solutions by Foundation for MUBs and large HMOs? Find out here
Mixed Use Mortgage Opportunities?
Over the past 12 to 18 months, we’ve noted a rise in the number of conversations with our intermediary partners around mortgages for mixed-use property – that’s property with part commercial use such as flats above and a shop below. Having got accustomed to a slightly more complex world of HMOs, MUFBs and holiday lets, landlords appear to have become more comfortable operating slightly beyond their residential BTL norm and may now be looking further afield to help manage their risk exposure.
Data
Recent findings from the National Association of Commercial Finance Brokers (NACFB) highlight that commercial finance brokers facilitated £38 billion in lending to SMEs in 2023. Within this, 70% of broker-led transactions were placed with either specialist lenders or challenger banks, whilst a quarter of broker respondents shared that their relationships with high street banks had worsened in 2023. Importantly, it also highlighted the critical role of brokers, with 32% of small businesses successfully funded in 2023 having previously been refused elsewhere, marking a significant 10% increase year-on-year.
Our Offering
In response to the growing number of landlords and investors who are looking to move into the mixed-use/part-commercial properties area to combat simultaneous voids, thus mitigating one of the most significant risks associated with property investment, we have recently incorporated this product offering into our new Solutions by Foundation proposition.
Download the Solutions by Foundation Product Guide here.
This represents an exciting step for us and provides our intermediary partners with an additional option for their clients and demonstrates how we are always looking to extend our solutions-driven offering to help landlords successfully divest year after year.
Do you work with landlords looking to diversify? Register with Foundation here.
This article was originally published on BestAdvice
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