Semi-Commercial Mortgages Cardiff
Single-facility commercial mortgages for the shop-with-flat-above archetype and other residential-commercial mixed assets where residential floorspace is 40%+. Up to 75% LTV. Blended ICR around 145%. Mid-2026 rates 6.5 to 8.5% pa. We arrange the unregulated cases (let residential element compliant with the Renting Homes (Wales) Act 2016); cases where the borrower or family member occupies the flat fall under the FCA\'s regulated mortgage perimeter and we refer those out to a regulated broker.
LTV
70 to 75%
Cover test
Blended ICR 140 to 150%
Rate range
6.5 to 8.5% pa
Facility
£150K to £2M
Underwriting a Cardiff semi-commercial commercial mortgage
Semi-commercial is the term for commercial mortgages on mixed-use property where the residential element is at least 40% of total floorspace, typically the classic shop-with-flat-above archetype that defines Cardiff suburban high streets. The product gives lenders comfort from the residential security (easier to re-let an empty flat than an empty retail unit), so semi-commercial routinely prices 50 to 100bps inside pure commercial investment on the same building.
There is one structural complication every borrower must understand. Commercial mortgages are unregulated by definition and fall outside the FCA\'s regulated mortgage perimeter, which is what we arrange. If the borrower or an immediate family member personally occupies the residential element, the deal moves inside the regulated mortgage perimeter and stops being a commercial mortgage. We do not hold FCA authorisation because the products we arrange are unregulated, so where a deal falls into regulated territory we refer it to a regulated mortgage broker partner. We flag this at outset rather than discover it three weeks into legals. The classic case: the independent retailer who buys the freehold of their shop and lives in the flat above sits inside the regulated perimeter; the same building bought as an investment with the flat let on an occupation contract sits inside our unregulated commercial scope.
Welsh-specific overlay: the Renting Homes (Wales) Act 2016 (in force since 1 December 2022) replaces the AST framework in Wales with a system of occupation contracts (standard contract for private rented homes, secure contract for social housing). Lenders that operate cross-border read the Welsh tenancy structures correctly; we sequence the legals so the residential element complies on day one and the lender\'s panel solicitor is Wales-registered.
Active Cardiff semi-commercial spines: Wellfield Road CF24 and Albany Road CF24 in Roath, Pontcanna Street CF11 and Cathedral Road CF11, Cowbridge Road East CF5 in Canton, Whitchurch Road CF14 in Heath, and Llandaff High Street CF5. Most semi-commercial deals are £150K to £800K facility size. Worked example: a Wellfield Road CF24 shop with two flats above, £475K valuation, retail let on a 10-year FRI to a national coffee covenant, both flats let on standard occupation contracts (unregulated, in our scope). InterBay Commercial placed at 75% LTV, 6.95% pa on a 5-year fix, 25-year term, blended ICR 148%. Worked example two: an Albany Road CF24 shop-plus-three-flats with all flats let on standard occupation contracts to arms-length tenants, £585K, placed via Together at 70% LTV, 8.45% pa, blended ICR 145%.
See our dedicated semi-commercial service page for the product mechanics in detail. For purely residential blocks above commercial, see HMO blocks; for predominantly-commercial buildings with smaller residential elements, see mixed-use.
Semi-commercial assets we fund
Shop with one or two flats above
Classic Cardiff high-street archetype. Wellfield Road CF24, Albany Road CF24, Pontcanna Street CF11, Cowbridge Road East CF5, Whitchurch Road CF14, Llandaff High Street CF5 spines.
Restaurant or pub with operator flat (let)
Operator flat above licensed-trade premises let on occupation contract. Sits as unregulated commercial. Owner-occupied flat cases fall outside our scope, referred to a regulated broker.
Office with residential conversion above
Office at ground or first floor with residential floors above (post-change-of-use under Welsh Use Classes). Common around Cathedral Road CF11 and the Cardiff Bay heritage stock.
Vacant semi-commercial acquisition
Bridge-to-let funded acquisition with refurbishment and re-letting both elements before term-out.
Multi-flat above commercial
Larger semi-commercial blocks with 3 to 5 flats above ground-floor retail. Specialist underwriting on blended ICR.
Heritage and Victorian conversions
Listed-building semi-commercial; heritage-comfortable lenders only. Victorian arcades, Cathedral Road conservation area villas, Mount Stuart Square Cardiff Bay heritage office stock.
Finance structures for Cardiff semi-commercial
Single-facility semi-commercial commercial mortgage is the primary route on unregulated cases (residential element let on standard occupation contract or to a limited-company tenant). Bridge-to-let funds vacant acquisition with agreed exit onto term semi-commercial. Cases where the borrower or family member will occupy the residential element fall outside the unregulated commercial scope, we refer those to a regulated mortgage broker partner.
Owner-occupier commercial mortgage
Where the borrower's business trades from the property, EBITDA cover at 1.3 to 1.5x.
Commercial investment mortgage
Let assets, ICR-led underwriting at 140 to 160% stressed cover.
Commercial bridge-to-let
Vacant or value-add acquisition with agreed term-out onto investment mortgage.
Commercial remortgage
End-of-fix or capital raise on existing assets.
The Cardiff semi-commercial estate
A deep, active product across Cardiff. The classic suburban high streets, Wellfield Road CF24 and Albany Road CF24 in Roath, Pontcanna Street CF11 and Cathedral Road CF11, Cowbridge Road East CF5 in Canton, Whitchurch Road CF14 in Heath, Llandaff High Street CF5, all run on shop-plus-flat-above stock dating from the 1860s through the 1930s. Crwys Road in Cathays CF24 holds student-economy semi-commercial. The change-of-use pipeline (vacant Class E units converting to leisure plus flats above under the Welsh Use Classes Order) keeps adding to the semi-commercial supply, with Cardiff Council planning records showing steady flow. The semi-commercial market trades steadily, these assets rarely sit vacant for long because the residential element is intrinsically lettable.
Lender appetite for Cardiff semi-commercial
Strong on the unregulated cases we arrange. <strong>InterBay Commercial</strong> (OSB Group) is the most active named lender on the Cardiff shop-plus-flat archetype, typical 7.5 to 7.75% pa at 70 to 75% LTV. Together covers more challenged cases (vacant flat at acquisition, weaker commercial covenant) at 8.5 to 9.25% pa. <strong>Shawbrook</strong>, Aldermore, YBS Commercial, HTB and Cambridge & Counties all have meaningful semi-commercial appetite on let residential cases. Each has a distinct LTV / minimum-loan / covenant profile, we know which fits what. Welsh-HQ Principality Building Society engages selectively on Welsh-resident borrowers. Cases that fall inside the regulated mortgage perimeter (owner-occupied residential element) are out of scope for us and we refer those to a regulated broker.
Semi-Commercial FAQs
Developing a semi-commercial scheme in Cardiff?
Free-of-charge scheme assessment. Indicative terms within 48 hours.