Mortgage guide
Commercial
For landlords focused on refinancing solely commercial properties, or those who choose to isolate these assets into distinct commercial mortgages, several benefits arise, particularly regarding valuation methods and available options.
- Published
- 30 Mar 2026
- Last reviewed
- 11 Sep 2026
- Reading time
- 3 min
Commercial
We strategically separate commercial and semi-commercial properties from residential assets during portfolio refinancing. This tactic is designed to secure the lowest interest rates for the residential components of your portfolio by isolating the commercial elements into their own mortgage facilities. This separation can significantly enhance the financial efficiency of your investments.
For landlords focused on refinancing solely commercial properties, or those who choose to isolate these assets into distinct commercial mortgages, several benefits arise, particularly regarding valuation methods and available options. Achieving optimal investment valuations is a common goal for many borrowers. While some lenders require a portfolio of at least five units to offer such valuations, others may extend this to single-unit properties, though these are rarer and come with additional eligibility requirements.
In our detailed FAQs, we delve into the specifics of securing a Market Value 1 (MV1) investment valuation for your commercial properties. We outline the necessary steps and criteria required to ensure you meet lender qualifications. This guidance is crucial for portfolio landlords aiming to obtain the best re-mortgage rates and optimise the financial performance of their commercial investments.
Portfolio lending for commercial properties, such as hotels, retail chains, and office buildings, securing the right mortgage involves understanding and leveraging investment valuations. At Mortgage Lane, we specialise in providing bespoke mortgage solutions that utilise these valuations to support your investment strategy and financial planning.
Investment Valuations Explained: Investment valuations are critical in the commercial lending arena as they provide an assessment of a property’s worth based not only on its current condition but also on its ability to generate income. This method is particularly pertinent for properties like hotels, which depend heavily on operational success, or office complexes with multiple tenants.
Whether you are re-mortgaging a portfolio or specific parts of your property holdings, our expertise at Mortgage Lane is geared towards providing you with tailored advice and competitive solutions that align with your unique financial objectives.
We provide portfolio commercial mortgage options to the following business sectors:
Types of commercial property
| Property type | Description |
|---|---|
| Retail Stores | Individual shops or chain stores selling consumer goods. |
| Shopping Centres | Complexes housing multiple retail stores and restaurants. |
| Office Buildings | Spaces leased or owned by businesses for operational purposes. |
| Warehouses | Facilities for storage and distribution of goods. |
| Industrial Facilities | Locations for manufacturing, assembling, and processing. |
| Hotels | Accommodation services for tourists and travellers. |
| Motels | Roadside hotels with easy access for motorists. |
| Restaurants | Dining establishments offering food services. |
| Cafes | Small eating places offering coffee and snacks. |
| Bars and Nightclubs | Entertainment venues serving alcoholic beverages. |
| Conference Centres | Facilities for hosting conventions and meetings. |
| Banquet Halls | Venues for hosting social gatherings, such as weddings and parties. |
| Healthcare Facilities | Hospitals, clinics, and other medical service providers. |
| Dental and Medical Offices | Specialist facilities for health professionals. |
| Nursing Homes | Residential care facilities for the elderly or disabled. |
| Day Care Centres | Facilities for child or adult care during working hours. |
| Gyms and Fitness Centres | Locations equipped for physical exercise. |
| Spas and Salons | Centres for beauty and personal care services. |
| Auto Repair Shops | Service centres for vehicle maintenance and repair. |
| Car Dealerships | Venues for selling new or used cars. |
| Movie Theatres | Facilities showing films to the public. |
| Bowling Alleys | Recreational facilities featuring bowling lanes. |
| Arcades | Venues with video games and amusement activities. |
| Art Galleries | Spaces for displaying art collections. |
| Museums | Institutions for preserving and exhibiting cultural, historical, or scientific artifacts. |
| Theatres | Venues for live performances such as plays and concerts. |
| Schools | Educational institutions for academic instruction. |
| Universities and Colleges | Higher education institutions. |
| Libraries | Facilities housing collections of books and resources. |
| Parking Garages and Lots | Structured or open spaces designated for vehicle parking. |
| Gas Stations | Facilities for refuelling vehicles. |
| Mixed-Use Developments | Properties that combine residential, commercial, and sometimes industrial spaces. |
Buy-to-let calculator
Estimate one property at a time. Portfolio-wide underwriting is assessed separately.
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| Maximum Loan to Value (LTV) | 80% LTV |
| Minimum Loan size | £40,000 |
| Mortgage Term | Up to 35 years |
| Interest rate | From 4.89% |
| Interest options | Fixed 2, 3 and 5 years, variable & base rate trackers |
| Experience requirement | None |
| Up front costs | Free valuation, Free legal representation |
| Broker fees | None |
| Completions | 4-12 weeks |
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Frequently asked questions
What is a commercial mortgage?
A commercial mortgage is an asset-backed loan secured against commercial, semi-commercial or large-scale investment property. Lenders assess it on income sustainability and asset risk rather than personal income multiples, and pricing is set case by case, usually as a margin over Bank Rate.
What is a bridging loan for commercial property?
A bridging loan for commercial property is a short-term, property-backed loan used to purchase, refinance, or stabilise commercial or mixed-use assets when a commercial mortgage is not immediately available. It is exit-driven, typically capped around 75% loan-to-value, and repaid through sale or refinance rather than ongoing affordability.
Can you get a mortgage above a commercial property?
Yes, you can get a mortgage on a property above a commercial unit, but it is classed as mixed-use or non-standard. Lenders assess the type of business below, access arrangements, lease terms, and resale risk, with fewer lenders and in some cases higher deposit requirements than standard residential properties.
What is commercial lending?
Commercial lending refers to loans secured against property used for business purposes, such as offices, retail units, or industrial premises. Terms, rates, and deposits are individually assessed and typically differ from residential mortgages.
What is a commercial bridge?
A commercial bridge is a short-term, property-backed loan used to purchase, refinance, or stabilise commercial or mixed-use property when a standard commercial mortgage is not immediately available. It is exit-driven, typically runs for 3-12 months, uses rolled-up interest, and is repaid through sale or refinance rather than ongoing affordability.
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