What is a blanket or cross collateral commercial refinance? One facility, every property, and the clauses that matter.
A cross collateral (or blanket) refinance replaces several property loans with one facility secured on all of them, so the lender's charge covers the whole portfolio and the loan is sized on its combined value and income, usually up to 70% to 75% LTV and 1.3 times cover. It releases equity trapped in strong properties to support weaker ones and simplifies the book. The price is that nothing can be sold or refinanced without the lender's release calculation, and a breach on one property is a breach on all.
By Dominic Whitecross, Co-Founder, HyLend. Last reviewed October 2026.
What you are actually agreeing to
| Term | What it means |
|---|---|
| Security | First legal charge over every property, plus a debenture over the company and usually personal guarantees |
| Loan sizing | Aggregate: lower of portfolio LTV and portfolio rental or EBITDA cover |
| Covenants | Portfolio LTV cap, interest or debt service cover, sometimes a minimum occupancy; tested quarterly or annually |
| Release | To sell one property, the lender releases it against a repayment, typically 110% to 125% of that property's share of the loan |
| Substitution | Some facilities let you swap a property out for another of equal value; many do not |
| Cross default | A covenant breach anywhere is a default on the whole facility |
| Term | 5 to 10 years, sometimes 25 for amortising facilities; fixed or variable |
Fees, and where they hide
Arrangement fee of 1% to 2% on the whole facility, which is more money than the same percentage on a single loan. Valuation of every property, often as a portfolio report with a discount. Legal fees on every title: the lender's solicitor registers a charge on each, and redemption of each existing loan carries its own fee and possibly an early repayment charge. Exit fees of 1% to 3% on some facilities. On a five property, £3m refinance, budget £60,000 to £100,000 all in before interest, which is why the structure needs a reason beyond tidiness. Commercial refinance triggers and timing →
Risks and pitfalls
The release clause. If it is set at 125% of the property's allocated loan, selling a property that carries £400,000 of the facility costs £500,000 of the proceeds, so a sale can leave you with less cash than a standalone mortgage would. Negotiate the release percentage and the allocation method before signing, not when selling.
Cross default. A void on one unit that breaks the cover covenant puts the whole facility in default, giving the lender rights over properties that are performing well. Ask for cure periods and for cover to be tested on the portfolio, not property by property.
Revaluation. Lenders can revalue at covenant tests. A fall in value on one asset type can breach the portfolio LTV cap and trigger a cash call. Headroom of 5% to 10% below the cap at drawdown is the protection.
Concentration. Everything with one lender means one appetite. If that lender leaves the sector, the whole book has to move at once.
When it is the right structure, and when it is not
Right: a growing portfolio where equity in older properties funds the next purchase, where a single lender relationship speeds further acquisitions, and where the properties are similar enough to be valued and covenanted together. Wrong: a portfolio you expect to sell down piece by piece, a mix of asset types a single lender will not price well, or a book already at 70% LTV on separate loans where consolidation adds fees and removes flexibility without releasing anything. Portfolio finance → Separate loans or one facility for a small portfolio →
How we place it
We model the facility against your actual plan for the next three years, including which properties you might sell, and we negotiate the release and substitution clauses with the lender before credit approval, because those terms are set at the start and almost impossible to change later.
Send the basics
Asset, amount, timeline and exit. Lender backed indicative terms within 24 hours, tested across the whole market rather than a single panel.
Send the basics → or call 07310 008347, or WhatsApp +44 7741 434395.
Cross collateral refinance: FAQs
What is a cross collateral loan?
One loan secured on several properties at once, so the lender can look to any of them for repayment. In commercial property it is usually a portfolio facility with a first charge on each title plus a company debenture.
What fees does a blanket refinance involve?
Arrangement fee of 1% to 2% on the full facility, valuation of every property, legal fees on every title, redemption fees and any early repayment charges on the loans being replaced, and sometimes an exit fee. Tens of thousands on a multi property book.
Can I sell one property from a cross collateralised portfolio?
Yes, under the release clause: the lender releases its charge against a repayment, typically 110% to 125% of that property's allocated share of the loan. The percentage is negotiable before signing.
What covenants should I expect?
A portfolio loan to value cap, an interest or debt service cover ratio, sometimes minimum occupancy, with periodic testing and revaluation rights. Ask for cure periods and portfolio level testing.
Is a portfolio facility cheaper than separate mortgages?
The rate is often lower because the loan is larger and the lender has more security. The fees are higher because every property is valued and charged. Over five years it is usually cheaper for a growing book and dearer for a static one.