Semi-Commercial Mortgage Lending Rises 20% in Q2, Says TAB Index
Market Updates

Semi-Commercial Mortgage Lending Rises 20% in Q2, Says TAB Index

By Dr. Priya Sharma, Property Markets Analyst · 29 July 2026 · 1 min read

Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Semi-Commercial Mortgage Lending Up 20% in Q2

Semi-commercial mortgage lending rose by 20% to approximately £242 million in the second quarter of this year, compared to £201 million in the same period of 2025, according to new figures from TAB. The data comes from TAB’s new monthly index of mixed-use mortgages, which estimates market-wide volumes using its own data and other publicly available sources.

The index also reports that transaction volumes increased by 13% year-on-year, rising from around 415 completions in Q2 2025 to 470 in Q2 2026. TAB notes that mainstream banks are stepping back from smaller and more complex deals, creating opportunities for specialist lenders.

More Lenders and Product Choices

According to the index, the number of active lenders in the semi-commercial and mixed-use mortgage sector has grown from 25 to 28 over the past year. Product choice has also expanded by nearly 20%, with 94 dedicated semi-commercial and mixed-use mortgage products now available.

TAB reports that experienced residential landlords are increasingly diversifying into mixed commercial and residential-use properties, seeking better income resilience. The index also highlights that lender competition is increasing, providing brokers and borrowers with more options than a year ago.

These trends may be relevant for UK letting agents and inventory clerks, as increased activity and diversification in the semi-commercial sector could impact demand for property management and inventory services.


Source: Mortgage Strategy
About the author
Dr. Priya Sharma
Property Markets Analyst

Dr. Priya Sharma writes The Property AI's data-led coverage of UK property markets — rental indices, sold-price trends, mortgage flows, and regional analysis. Articles bylined Dr. Sharma cite ONS, Land Registry, Bank of England, and primary research data.

PhD Economics. Specialises in: ONS Index of Private Housing Rental Prices, Land Registry data, regional rental analysis, mortgage approvals trends.

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