Semi-commercial mortgage on a Bristol shop-with-flat: the FCA twist most brokers miss

The classic Bristol semi-commercial archetype, ground-floor retail with one or two flats above, on Gloucester Road in Bishopston BS7, North Street in Bedminster BS3, Whiteladies Road in Clifton BS8, Stokes Croft in BS1 or Park Street in BS1, is one of the most well-funded products on the panel. InterBay Commercial, Aldermore, Together and HTB South West all quote up to 75% LTV on the right asset. But there is a catch most brokers overlook: where the residential element exceeds 40% of floor area and the borrower or a family member lives in part of the property, the loan can fall inside the Financial Conduct Authority regulated mortgage perimeter. Apply for an unregulated commercial mortgage on a regulated case and the lender will decline at submission. This piece walks through the screening test, the regulated commercial mortgage product, and the specific Bristol situations that trigger the regulated route.