Category: Insights

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

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.