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

The classic Liverpool semi-commercial archetype, ground-floor retail with one or two flats above, on Lark Lane in Aigburth L17, Allerton Road in Mossley Hill L18, Smithdown Road through Wavertree L15, Bold Street in the Ropewalks L1 or Crosby Road North L22, is one of the most well-funded products on the panel. InterBay Commercial, Aldermore, Together and HTB North 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 Liverpool situations that trigger the regulated route.