Semi-commercial portfolio finance
A single facility across several mixed-use properties, refinancing or expanding a portfolio under one lender, one valuation cycle and one point of contact.
What semi-commercial portfolio finance is
Semi-commercial portfolio finance funds several mixed-use properties under a single facility rather than arranging a separate semi-commercial mortgage on each one. A landlord holding a run of shops with flats above, a parade, or a mix of mixed-use buildings can refinance them all together, draw on the combined equity, and run the lending as one relationship with one lender, one valuation cycle and one point of contact.
The appeal is efficiency and flexibility. The lender assesses the portfolio as a whole, so a stronger asset can support a weaker one, and the aggregate loan to value across the portfolio is what matters rather than each property in isolation. Many facilities allow properties to be added, sold or substituted over time without unwinding the whole arrangement, which suits an investor who is actively buying and selling. Most portfolio borrowers hold their assets in a limited company or special purpose vehicle.
We are a finance arranger and introducer, not a lender. Lending across a portfolio of mixed-use investment property is unregulated lending, outside the FCA's regulated mortgage perimeter, because the borrower is an investor rather than an occupier.
- One facility across several mixed-use properties
- Assessed on the portfolio as a whole
- Up to 70 to 75 percent aggregate loan to value
- Properties can often be added, sold or substituted
- Usually held in a limited company or SPV
Indicative terms
- Loan to valueUp to 70 to 75% aggregate
- Rate6.5 to 8.5% a year (indicative)
- Term5 to 25 years
- AffordabilityPortfolio-wide ICR, 125 to 140%
- StructureSingle facility, often an SPV
- FlexibilityAdd, sell or substitute assets
Indicative only. Terms vary by lender, property and borrower and are not an offer of finance.
Who it suits
- Landlords holding several mixed-use properties
- Investors consolidating multiple semi-commercial loans
- Limited company and SPV portfolio owners
- Active investors who buy and sell within a portfolio
Discuss semi-commercial portfolio finance
A view on lenders and likely terms within one working day.
How portfolio finance works
Review the portfolio
We review every property, its income, its lease structure and its current borrowing, to build a picture of the portfolio as a whole.
Size the facility
We model the aggregate rental income against a portfolio-wide interest cover ratio to size a single facility at up to 70 to 75 percent of combined value.
Place with a portfolio lender
We approach lenders that underwrite portfolios as one relationship, such as Shawbrook, InterBay Commercial and Paragon, on rate, flexibility and the substitution terms.
Consolidate and complete
We manage valuation across the portfolio and the legal work to redeem the existing loans and draw the single facility.
Who can use semi-commercial portfolio finance
Portfolio finance suits established investors, usually limited companies or special purpose vehicles, holding several mixed-use or semi-commercial properties. Lenders assess the portfolio's aggregate income and value, the spread and quality of the assets, the borrower's experience and the wider track record. A portfolio with diversified tenants and a sound loan to value across the whole is the strongest case, because one void or one weaker asset is cushioned by the others. Lenders set a minimum portfolio size, often a handful of properties or a minimum aggregate value, below which individual mortgages make more sense.
How much you can borrow across a portfolio
Portfolio facilities lend up to 70 to 75 percent of the combined value of the properties, sized on the aggregate rental income at an interest cover ratio of typically 125 to 140 percent across the whole portfolio. Assessing the assets together often releases more than financing each separately, because surplus cover on a strong property can support the borrowing on a weaker one. The equity released on a refinance can fund the next acquisition, and many facilities let you draw against the portfolio as it grows.
Rates, fees and the efficiency of one facility
Portfolio rates sit at around 6.5 to 8.5 percent a year for mid-2026, similar to a single semi-commercial mortgage, with pricing reflecting the portfolio's loan to value and quality. A single facility means one arrangement fee structure and one valuation cycle rather than repeating fees on every property, though larger portfolios carry valuation fees across each asset. Expect a lender arrangement fee of roughly 1.5 to 2 percent and legal costs covering the whole facility. These figures are indicative and not an offer of finance.
Portfolio finance against individual mortgages
Financing each property on its own mortgage is simplest for a small holding and keeps the assets fully separate. A single portfolio facility suits a larger holding: it is assessed as a whole, so a strong asset can lift the borrowing on a weaker one, it runs as one relationship with one renewal to track, and it usually allows properties to be added or sold without refinancing everything. The trade-off is that the properties are cross-secured under one facility, so we make sure the structure fits how you intend to run and grow the portfolio.
Semi-commercial portfolio finance: common questions
What is a semi-commercial mortgage?
A term loan secured against a property with both a commercial and a residential element. Portfolio finance funds several such properties under one facility rather than a separate mortgage on each.
What is the difference between a mortgage and a portfolio mortgage?
A standard mortgage funds a single property and is assessed on that property alone. A portfolio mortgage funds several properties under one facility, assessed on the aggregate income and value, so a strong asset can support a weaker one and the lending runs as a single relationship.
What is a semi-commercial property?
A property combining a commercial element and a residential element under one title, such as a shop with a flat above or an office with residential upper floors. A portfolio of these can be financed together under one facility.
What should I not tell a lender?
Nothing should be left out. A portfolio lender needs full visibility of every property's income, tenancy, value and existing borrowing across the whole holding. Complete, accurate disclosure is what gets a portfolio facility approved, and we help you assemble it.
Discuss semi-commercial portfolio finance
Send us the property details and we will come back with a view on lenders and likely terms within one working day.