And for that latter group, it means more than simply considering a variety of locations but also different types of property.

Properties that bring together both the residential and the commercial, effectively under one roof, can be a powerful addition to any portfolio.

There is, however, a hurdle in the form of mortgage finance.

We know that traditional mortgage lenders have become more cautious when handling these cases, hiking their rates, or tightening their criteria.

It simply makes financing them less viable, at least in the short term.

We have utilised a different approach at Tuscan however, instead focusing on how we can better support investors looking to add these properties to their portfolio or simply refinancing existing ones.

And one of the most effective ways in which we have been able to do this is by assessing the property against our residential product, rather than on commercial property terms.

Operating in this way can deliver significant, tangible benefits to investor borrowers.

First and foremost, there is the simple question of rate. 

Commercial mortgages, understandably, come with higher interest rates than what you would tend to pay on a residential case.

There’s also the question of leverage — commercial borrowing not only comes with higher rates, but it can be much more limiting in terms of LTVs for borrowers.

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It can mean those looking to invest in mixed-use assets therefore have to stump up much larger equity stakes at the outset. 

Again though — as mixed-use assets qualify for our residential product — it opens up the possibility of accessing funding at much higher LTV levels.

That combination of more competitive rates at higher LTVs is an extremely compelling one for a wide range of property investors who have recognised the opportunities that mixed-use assets present to their portfolio.

There is a clear criteria benefit in that there is no need for interest coverage ratio (ICR) calculations.

Brokers will know only too well how the ICR has proved a problematic hurdle for many landlords of late, with the growth in interest rates forcing many to consider the sort of rental hikes that may not be palatable to their existing tenants.

Furthermore, we have seen a significant shift in attitude among landlords towards the way they fund their portfolios currently.

In years gone by, landlords have been happy to lock in a rate for a few years, comfortable in the knowledge of knowing what they will be paying for the foreseeable future.

But as interest rates have risen so sharply, that has become a much less appealing prospect.

It’s not just a case of waiting it out either, but rather using that time to carry out refurbishments, secure better tenancies, or even sell off some of the property assets in the portfolio to put themselves on a surer footing.

The interest in mixed-use is unlikely to disappear any time soon, making it more crucial for brokers to identify the lenders best placed to support their investor clients.

Lenders who can deliver competitive terms, a slick process, and a reliable track record are always likely to stand out from the crowd.