If the hot water is gravity fed, and the cold is at mains pressure, many mixers will have a tough time coping with the unequal water pressures.
The position of the hot cylinder makes little difference. It's the position of the cold storage tank feeding the hot cylinder that establishes the hot water pressure available.
The best results are usually achieved by running the cold feed to the mixer from the cold storage tank. Adding a pressure reducing valve to a mains cold feed may improve matters.
A lot of the brassware on the market is made for high pressure systems, and will not operate satisfactorily on the low water pressure available from gravity systems. A shower booster pump can boost the pressure, but can't be used with a mains pressure cold supply.