Commercial Mortgages for Property Developers
Property developers often need to refinance completed projects onto long-term commercial mortgages or build a portfolio of retained investment properties. A commercial mortgage provides the stable, low-cost finance needed to hold income-producing assets while development profits fund the next project.
Developers with a track record can access portfolio facilities covering multiple properties under a single agreement. This simplifies management and can improve overall terms compared to individual property mortgages.
Key Benefits
- Refinance completed developments at lower long-term rates
- Build a retained investment portfolio alongside development activity
- Portfolio facilities covering multiple properties
- Release equity from existing assets to fund new developments
Frequently Asked Questions
Can I refinance a bridging loan into a commercial mortgage?
Yes. This is one of the most common exit routes for bridging loans. Once a property is complete, stabilised, or tenanted, you refinance to a commercial mortgage at a significantly lower rate.
What about development exit finance?
Development exit finance sits between bridging and a full commercial mortgage. It is typically available once a development is 60-80% sold or let, providing cheaper finance while the remaining units sell.
Can I borrow against an SPV?
Yes. Most property investment is held in SPVs for tax and liability reasons. Lenders routinely lend to SPVs, though they will require personal guarantees from directors.
What yield do lenders look for?
For investment properties, lenders typically require a minimum gross yield of 125-145% of the mortgage payment. This means the rental income must comfortably cover the mortgage cost with headroom.
Related Funding Options
Commercial Mortgages UK
Long-term finance for buying or refinancing commercial property. Offices, shops, warehouses, and mixed-use premises for UK businesses.
Bridging Loans for Property Developers
Fast bridging finance for UK property developers. Fund auction purchases, refurbishments, and chain breaks. Completion in days, not months.
Development Finance for Property Developers
Ground-up development finance for UK residential and commercial projects. Fund land acquisition, construction, and completion.
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Learn About Our Broker NetworkCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.