Which UK Lenders Lend on Flats Above Takeaways or Shops?
Many UK lenders decline flats above commercial premises on resale grounds. The business type matters — offices and shops are usually fine; hot takeaways, pubs and bookmakers are often refused.
Data refreshed 2026-05-03. Information only — not advice.
Your situation
High Street Lenders
- Barclays— Up to 80% LTV (mixed-use), refer
- Clydesdale Bank— Refer; pubs/restaurants/bars accepted only in Central London or prime Edinburgh
- Halifax— Up to 95% LTV, refer; case-by-case, no specific exclusions
- HSBC— Up to 95% LTV; commercial must be minor part, whole sellable as residential
- Metro Bank— Up to 95% LTV; non-residential ≤25% of property
- NatWest— Up to 95% LTV; >50% residential use required
- TSB— Up to 95% LTV; separate title to commercial, direct external access required
Building Societies
- Bath Building Society— Up to 50% LTV; mixed-use, subject to underwriting
- Beverley Building Society— Up to 60% commercial; not in city-centre areas
- Buckinghamshire Building Society— Refer; prime urban only — suburban shopping parades unlikely
- Chorley Building Society— Up to 95% LTV, refer; flat NOT directly above the commercial unit; type of commercial must not affect resale
- Coventry Building Society— Up to 75% LTV, refer; nature of business may force decline
- Darlington Building Society— Refer; case-by-case
- Earl Shilton Building Society— Up to 50% LTV mixed-use; capital & interest only
- Ecology Building Society— Refer; nature of activity in commercial premises reviewed
- Godiva Mortgages— Up to 95% LTV, refer; valuer-led
- Hanley Economic Building Society— Up to 95% LTV; Class E only — takeaway (sui generis) likely refer
- Harpenden BS— Up to 80% LTV, refer
- Hinckley & Rugby Building Society— Up to 95% LTV; commercial element <40%
- Leeds Building Society— Up to 95% LTV, refer; food-outlet adjacency specifically reviewed
- Loughborough Building Society— Up to 95% LTV, refer
- Market Harborough Building Society— Up to 80% LTV, refer; case-by-case
- Newbury Building Society— Up to 95% LTV, refer; initial approval required
- Penrith Building Society— Up to 90% LTV; borrower's personal use ≥40% of floor area
- Scottish Building Society— Up to 95% LTV; flats over retail, max 5 storeys
- Stafford Railway Building Society— Up to 80% LTV; up to 60% commercial, min 40% residential
- Suffolk Building Society— Up to 95% LTV, refer; type-of-commercial dependent
- Swansea Building Society— Up to 80% LTV, refer; case-by-case
- West Bromwich Building Society— Up to 75% LTV; min value £150k, max 25% of a development
Specialist Lenders
- Castle Trust— Refer; case-by-case
- Foundation Home Loans— Up to 60% LTV, refer
- InterBay— Up to 85% LTV; semi-commercial specialist
- Keystone Property Finance— Up to 80% LTV; flats above commercial accepted
- Legal & General Home Finance— Up to 60% LTV, refer; predominantly residential only
- LiveMore— Up to 80% LTV, refer
- Moda Mortgages— Refer; only good-quality developments
- Rely Mortgages— Refer; no adverse valuer/conveyancer comments
- Skipton International— Up to 75% LTV, refer; pre-agreement required
- The Mortgage Lender— Up to 95% LTV, refer; non-negative valuer comments, urban only, ≥£150k
- Together— ≥40% residential required
- Vida Homeloans— Up to 60% LTV for takeaway/restaurant/pub adjacency (75% LTV for less risky commercial)
Why some lenders say no
- Resale risk — flats above hot takeaways sell slower and for less.
- Odour, noise, and pest concerns flagged by surveyors.
- Some lenders auto-decline on any property within 50m of specified business types.
Related reading: Why some properties are 'unmortgageable' · Property types accepted
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Run My Affordability CheckFrequently asked questions
Does the type of business matter?
Yes. Offices, accountancies, estate agents, dentists — generally accepted. Retail — usually accepted. Hot takeaways, pubs, bookmakers, adult entertainment — usually declined.
Does distance from the business matter?
Most lenders flag direct above/adjacent properties. Some apply a radius rule (e.g. decline if within 50m of specific business types).
Can a higher deposit fix it?
Sometimes. A few lenders accept commercial-adjacent flats at lower LTVs (e.g. 75% rather than 90%). Specialist lenders go higher at a rate premium.
Is this more of a problem in leasehold?
Slightly — the surveyor reviews the lease for commercial-use restrictions and noise clauses. A weak lease plus a commercial neighbour often causes a decline.
