If you run a business from premises you rent, or own a shop with flats above, the past fortnight has brought some useful news: more lenders are competing for commercial and semi-commercial loans, and new owner-occupier options are arriving before the Budget on Wednesday 28 October.
Semi-commercial lending keeps growing
According to Tab's Mixed-Use Mortgage Monitor, reported by Mortgage Solutions on 14 October 2026, semi-commercial mortgage advances reached £250m in Q3 2026, up 3% on the previous quarter and 36% higher than in Q1 2025. The number of active semi-commercial term lenders rose to 30, up from 25 at the start of 2025, with two new lenders arriving in Q3 and none leaving. The average loan size was about £510,000.
More lenders usually means more choice on property types, loan sizes and how income is assessed. The same report notes that the gap between average semi-commercial pricing and Bank Rate widened over the year, so comparing the whole market still matters.
New owner-occupier choice for business owners
On 20 October 2026, Mortgage Solutions reported that MT Finance had launched owner-occupier commercial mortgages for business owners buying or refinancing the premises they trade from. Loans run from £100,000 to £3m at up to 75% loan-to-value for standard sectors (up to £2.5m at 70% for specialist sectors), over 5 to 30 years, on capital repayment or interest-only. Borrowers generally need at least two years' trading history.
For many firms, owning rather than renting can turn a monthly rent bill into an asset on the balance sheet. Whether it makes sense depends on your accounts, your deposit and how long you plan to stay.
What to watch this week and next
The Bank of England base rate is 3.75%, with the next Monetary Policy Committee decision due on 5 November 2026. The Autumn Budget lands on 28 October. Lenders often reprice around both events, so if you have a purchase or refinance in mind, getting your paperwork ready now can help you move quickly.
Quick tips
- Have two to three years' accounts ready, plus up-to-date management figures for the current year.
- Know your lease position: for semi-commercial property, have the tenancy agreements for the shop and any flats to hand.
- Check the property type early: specialist uses (such as pubs, care or leisure) often mean lower loan-to-value limits.
- Plan your deposit: commercial lenders typically want 25% to 30% or more.
- Ask about early repayment charges on any current loan before you refinance.
Most commercial mortgages are not regulated by the Financial Conduct Authority. Our CeMAP-qualified advisers can compare lenders across the market and explain which protections apply to your case.
Run some early numbers with our commercial mortgage calculator, read how we helped a dental practice in Harrow buy its own premises, or see our semi-commercial mortgages page if you own (or want to buy) a shop with flats above.
Sources
- Mortgage Solutions, 14 October 2026: Commercial mortgage advances increase in Q3 (Tab Mixed-Use Mortgage Monitor)
- Mortgage Solutions, 20 October 2026: MT Finance launches owner-occupier finance for commercial mortgages
- Bank of England: Bank Rate
To talk it through, contact us or start your enquiry.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.