Personal mortgage on a 'Commercial' property

chrisbyrd

Hi

My girlfriend and I have found a house we want to buy in the Peak District, but it's becoming a nightmare trying to arrange the mortgage

We are in the process of selling our current house (to a first time buyer) and this all seems to be going through ok so far

The property we'd like to buy is mainly living accomodation, but it has a small shop frontage on the ground floor (we'd like to run a small cake shop in it, mainly as a hobby than anything else). I understand its also on commercial deeds.

We just want the mortgage to be done on our personal situation - nothing to do with the new shop 'venture' taken into account (as it'd be pretty worthless). We've got a fairly strong personal income stream, so there shouldnt be any affordability issues

Nobody seems to want to touch it for a mortgage

I understand the main issues/problems are:

- its a property on commercial deeds
- the shop and living accomodation are on the same title
- more than 40% of the sq footage would be our main residence (therefore needs FSA regulation)
- they wont do a standard person mortgage on a house which has commercial deeds
- they wont do a standard commercial mortgage based just on our personal income

Is there really no mortgage product for us? We can probably get a 20% deposit together

We've tried a couple of mortgage brokers, and they've not managed to turn anything useful up

We're getting pretty desperate now

Any ideas?

Thanks

Thrugelmir

but it has a small shop frontage on the ground floor (we'd like to run a small cake shop in it, mainly as a hobby than anything else).

A business is not a hobby. Produce a business plan to demonstrate that income can be generated from the shop to support a commercial mortgage application.

Annisele

Thrugelmir wrote: »

A business is not a hobby. Produce a business plan to demonstrate that income can be generated from the shop to support a commercial mortgage application.

Agreed. If the cake shop is run as a "hobby" rather than as a commercial business, then the banks won't see "hobby" - they'll see "sucker of all of chrisbyrd's income".

xyellowx

could you not apply for mortgage on the understanding you are only interested in using the property as residential
then change your ming in a month or twos time?