Refinance the portfolio on what it earns, not what the comparables say.
If you hold four or more let properties in a limited company or SPV, a commercial lender will value HMOs, multi unit blocks and mixed use stock on their rental income, usually 10% to 25% above the bricks and mortar figure a buy to let lender uses. That recognised equity refinances expensive bridges and second charges, funds the next purchase, and puts the whole book on one interest only facility. The headline rate is rarely lower than a high street fix; the total cost of carrying the portfolio usually is.
By Dominic Whitecross, Co-Founder, HyLend. Last reviewed October 2026.
Two valuations of the same portfolio
| Asset | Buy to let lender values it on | Commercial lender values it on | Typical difference |
|---|---|---|---|
| Standard houses and flats, single let | Comparable sales | Comparable sales | None |
| HMOs, 6 beds and above, licensed | Comparable sales, as a house | Investment value on net rent at a yield | Often 15% to 30% |
| Multi unit freehold blocks | Sum of the flats, often discounted | Investment value on the block's income | 10% to 20% |
| Mixed use, shop with flats above | Residential element only, or declined | Investment value across the whole building | 10% to 25% |
| Holiday lets and serviced accommodation | As a house, or declined | Trading or investment value | Case by case |
Investment value is net rent capitalised at a yield the valuer takes from comparable lettings investments. On a licensed HMO producing £48,000 a year in a market where investors pay for an 8% yield, that is £600,000, against perhaps £450,000 as a house. The lender lends on the figure its valuer gives, so the asset type decides which figure you get. How valuation basis sets the loan →
Worked example: eight properties, one facility
A limited company holds five single let houses and three licensed HMOs. Bricks and mortar value £2.4m; on investment value for the three HMOs the portfolio comes to £2.75m. Existing debt: £1.5m of buy to let mortgages at an average of 6.2%, and a £300,000 bridge at 0.95% a month taken to buy the last HMO, together costing about £127,000 a year in interest.
A commercial portfolio facility at 70% of £2.75m is £1.925m. Used to repay the £1.8m of existing debt, it releases about £90,000 after fees and costs, at 6.4% interest only, about £123,000 a year: more borrowed, slightly less paid, the bridge gone. Taken at £1.8m with no equity release, the interest bill is about £115,000, a saving of £12,000 a year against the blended cost of the old debt, and the rental cover test is comfortably met on £195,000 of rent at 1.3 times and a 6.5% stress rate.
The saving comes from retiring the expensive short term debt and moving to interest only on an income valued book, not from the headline rate, which is 0.2% higher than the old buy to let average. That is the honest shape of most portfolio refinances. The two tests that size the loan →
What a commercial lender will want to see
| Typical 2026 position | |
|---|---|
| Borrower | UK limited company or SPV; personal guarantees from directors; 12 months plus as a landlord |
| Portfolio | Four or more properties, or fewer where the assets are income valued (HMOs, blocks, mixed use) |
| Rental cover | 125% to 145% of interest at a 5.5% to 7.5% stress rate, tested on the whole portfolio |
| Loan to value | Up to 80% of the lender's valuation at the top of the market, 70% to 75% more commonly; interest only available for the full term on most facilities |
| Term and pricing | 5 to 10 years, fixed or variable, from 5.4% a year at the top of the market; arrangement fee 1% to 2% |
| Documents | Tenancy schedule, licences, 12 months of rent statements, company accounts, existing mortgage statements |
| Timeline | 8 to 12 weeks; a portfolio valuation report and legals on every title set the pace |
Non regulated, limited company lending only. We do not arrange consumer buy to let or regulated mortgages. Limited company buy to let →
When it is the wrong move
Three cases. A portfolio of standard single let houses with no HMOs, blocks or mixed use gains nothing on valuation and pays higher fees for a single facility; separate limited company buy to let remortgages are the better route. A book already at 75% to 80% on bricks and mortar cannot refinance up unless the income valuation lifts it. And a landlord planning to sell down property by property should think hard before cross collateralising everything under one charge. What one facility commits you to → Separate loans or one facility for a small portfolio →
How to find out in a day
Send the tenancy schedule with rents, the current loans and rates, and the asset types. We run both valuations, bricks and mortar and investment, across the lenders whose appetite matches the book, and show you three numbers: the equity the income valuation recognises, the facility it supports, and the annual cost against what you pay today. Lender backed indicative terms within 24 hours; the form at the top of this page or WhatsApp is the fastest way to start. Free portfolio and deal templates →
How we place it
We run every portfolio refinance on two valuations and against the lenders that value HMOs, blocks and mixed use on income, and we compare the whole annual cost of the new facility with the blended cost of the old loans, fees included, before recommending anything. If the honest answer is to keep the buy to let mortgages, we say so.
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.
Portfolio refinance: FAQs
Can I refinance my buy to let portfolio onto a commercial mortgage?
Yes, through a limited company or SPV, with four or more properties, or fewer where the assets are HMOs, multi unit blocks or mixed use. The loan is sized on rental cover and the lender's valuation, up to 80%.
Is a commercial mortgage rate lower than buy to let?
Usually not on the headline: from 5.4% a year in 2026 at the top of the market, against high street buy to let fixes that can be lower. The saving comes from a higher valuation on income valued stock, retiring bridges and second charges, interest only for the term, and one fee stack instead of several.
How do commercial lenders value an HMO?
Licensed HMOs of six beds and above are usually valued on investment value: net rent capitalised at a market yield, typically 15% to 30% above the bricks and mortar value a buy to let lender would use. Smaller HMOs are often still valued as houses.
Can I release equity when refinancing a portfolio?
Yes, up to the lender's loan to value on its valuation and subject to rental cover. On an income valued portfolio the recognised equity is often larger than on bricks and mortar, which is where the released cash comes from.
How long does a portfolio refinance take?
Eight to twelve weeks. The portfolio valuation report and the legal work on each title set the pace; a complete tenancy schedule and licences on day one are what gets you to eight.