Commercial Mortgages
in Newport City Centre

Valuation methodology for commercial mortgages differs fundamentally from residential lending. Commercial properties are valued on an investment basis (capitalised rental income) rather than comparable sales, meaning that rental strength, lease terms, and tenant covenant directly affect your achievable leverage and pricing.

Mixed-use properties — typically residential above commercial ground floors — sit in a grey area between commercial and residential mortgage products. Some lenders treat them as commercial, others offer bespoke mixed-use products, and the right approach depends on the income split and the proportion of the property that's commercial versus residential.

Refinancing from development finance or bridging into a long-term commercial mortgage is a common strategy for developers who want to retain completed assets as investments. Pre-agreeing exit finance terms before the development or refurbishment phase gives you certainty on long-term holding costs and can strengthen your initial funding application.

The Welsh planning system has its own nuances — including Technical Advice Notes and the requirement for Welsh language impact assessments in certain areas — that developers need to navigate. Lenders experienced in the Welsh market understand these requirements and can structure facilities that account for the specific consenting timeline.