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  • Commercial Portfolio Refinancing UK — How It Works

    Refinancing a commercial portfolio is not the same as refinancing a single asset. The complexity compounds across different lenders, maturity dates, LTV positions, and — increasingly in 2026 — different EPC profiles. A single lender rarely accommodates the full picture. The solution is usually a combination of facilities, sequenced correctly to achieve the overall objective without triggering adverse consequences on any individual asset.

    📊 The current market for portfolio refinancing in 2026

    Lender competition for quality commercial portfolios of £5M+ is strong. Challenger banks and specialist lenders have stepped into gaps left by high street banks, which have pulled back from secondary retail, hospitality, and more complex structures. Well-performing portfolios with strong occupancy and good EPC ratings are attracting multiple term sheets.

    Pricing has softened from the 2023–2024 peak, and well-structured larger portfolios are accessing materially better terms than smaller or more complex facilities. Most lenders now require debt service cover ratios of 125% to 150% — a more rigorous bar than many portfolio owners experienced at their last refinance.

    🏢 Where complexity concentrates

    Mixed EPC ratings — lenders are applying lower LTVs and higher margins to sub-EPC C assets. Segmenting the portfolio across lenders by asset quality is often the right approach, and most lenders now expect a credible pathway to compliance, not just current status.

    Covenant breach on one asset — one underperforming asset does not have to infect the refinancing of the whole. Isolating it on a short-term bridge while the others refinance onto term products is cleaner.

    Simultaneous acquisition — if equity release is needed to fund a purchase, a bridging facility on unencumbered assets can provide liquidity while the term refinancing completes in parallel.

    💡 The structure question matters more than the rate question

    The best outcomes come from preparation — addressing EPC positions early, documenting income clearly, and approaching the right lenders in the right sequence.

    If you are a commercial portfolio owner looking to refinance, restructure, or release equity — and the picture is anything other than straightforward — we would welcome the conversation.

    Message us directly or visit https://rosehillcapital.co.uk to discuss

  • Mezzanine Finance Rates UK 2026

    Mezzanine finance rates UK 2026 — where pricing sits, and when the extra leverage can make sense.

    Mezzanine finance sits behind senior debt in the capital stack. Its role is to bridge the gap between what a senior lender will provide and the total capital a developer needs to complete a scheme.

    In the right structure, mezzanine can help push total funding materially beyond senior debt alone. Exact leverage depends on the scheme, sponsor, senior lender, and exit — but it is commonly used where senior debt does not fully cover project costs.

    💷 What are developers paying for mezzanine in the UK in 2026?

    Pricing varies widely by leverage, asset type, location, track record, and exit profile. Because mezzanine sits in a subordinated position, it is priced above senior debt.

    Indicatively, stronger mezzanine deals can sit in the low-to-mid teens annually, with pricing moving higher on more leveraged, more complex, or weaker-credit structures. Arrangement fees and exit fees may also apply depending on the lender and the structure.

    📐 When does mezzanine make sense?

    The commercial logic is straightforward: does the reduction in equity required justify the additional cost of capital?

    On the right scheme, the answer can be yes. Used properly, mezzanine can reduce the sponsor’s upfront equity requirement, improve return on capital, and preserve liquidity for future projects. But it only works when the full capital stack remains sensible and the exit still stands up under stress.

    What mezzanine lenders are looking for in 2026:

    → An experienced developer with a relevant delivery track record → Robust GDV evidence supported by valuation and local comparables → A credible senior lender and acceptable senior terms → A clear and realistic exit — whether by sale or refinance

    🔗 Why execution matters

    Mezzanine is not just about headline pricing. Because it sits behind senior debt, the structure has to work for both lenders simultaneously. The senior lender must be comfortable with mezzanine behind its position, and the mezzanine provider must be satisfied with the senior terms, security package, and exit route. Getting both parties aligned — at the same time, not sequentially — is where these deals are won or lost.

    If you are assessing whether mezzanine finance could improve the numbers on your next scheme, message us directly or visit rosehillcapital.co.uk.

  • Development Exit Finance UK 2026 — Rates and How It Works

    Development exit finance UK 2026 refinances a completed scheme off a maturing development loan, providing time for an orderly sales process. In 2026 the market is particularly active as schemes completed in 2022–2023 face slower sales environments than originally projected.

    Current rates: from 0.55% to 0.75% per month for well-completed schemes with strong GDV evidence. Schemes where GDV has moved or sales are slower typically price at 0.75% to 1.0% per month. LTV on development exit is typically up to 70% of completed open market value.

    The key timing point: options available six months before facility expiry are substantially better than those available at maturity. Act early.

    To discuss development exit finance for a maturing facility, contact Rosehill Capital at rosehillcapital.co.uk.

  • Commercial Bridging Finance Rates UK 2026

    Commercial bridging finance rates UK 2026 — what experienced investors and developers are currently paying.

    First charge commercial bridging on prime, low-LTV security is available from 0.55% per month. Standard commercial security at 65–70% LTV typically prices between 0.65% and 0.85% per month. Higher LTV or complex asset transactions reach 0.85% to 1.25% per month. Second charge bridging runs 0.2% to 0.4% per month above equivalent first charge rates.

    The headline rate is only part of the cost. Arrangement fees, exit fees, minimum terms, and interest structure all affect the total cost of funds. On a £3M commercial bridge, the difference between a well-structured facility and a poorly chosen one can be six figures over a nine-month hold.

    Key pricing variables: LTV, exit strategy quality, asset type, and speed of completion required.

    To discuss current commercial bridging terms for a specific transaction, contact Rosehill Capital at rosehillcapital.co.uk.

  • Development Finance Rates UK 2026

    Development finance rates UK 2026 — where the market actually sits for experienced developers right now.

    For mainstream residential schemes with experienced developers, rates are sitting between 6.5% and 9.5% per annum. The range is wide because the variables are significant: developer track record, scheme location, planning status, leverage required, and the quality of the exit strategy all move the rate materially.

    Bank-backed lenders offer the lowest headline rates at 6.5% to 8% per annum, with stricter criteria around track record, minimum scheme sizes, and often pre-sales requirements. Non-bank lenders and private credit funds typically price at 8% to 10% per annum but offer higher leverage (65% to 75% LTGDV) and faster execution.

    On leverage: most lenders advance up to 65% of gross development value (LTGDV), with stronger applications reaching 70%. LTC (loan to cost) typically up to 85–90%, subject to the LTGDV cap.

    Interest is almost always rolled up — accruing throughout the build and repaid at exit. On a 14-month facility at 0.85% per month, rolled interest on a £2M facility is approximately £238,000. That figure needs to sit within the LTGDV cap at completion.

    If you have a development scheme and want to discuss current terms for your specific situation, contact Rosehill Capital directly at rosehillcapital.co.uk.