YBS Commercial Mortgages completes first SME deal

By Bridging Loan Directory 5th August 2024

YBS Commercial Mortgages has completed its very first mortgage designed to support owners of small and medium-sized businesses (SMEs).

The deal involved an innovative offering of five separate loans, including one for a 30-year-old family-run-and-owned timber and builder’s merchants, located in Hertfordshire.

The finance package also featured a commercial investment element and three buy-to let refinances, to cover the family’s property portfolio.

The loan totalled more than £13 million overall – of which £1.6 million was provided by the new SME product. The rest was covered by the lender’s established commercial investment and portfolio landlord offerings.

YBS Commercial launched its new owner-occupied SME offering in May, inspired by a desire to assist the SME sector, which is so vital to UK economic vibrancy but often overlooked when it comes to financial support.

The product – which has been specifically tailor-made for this sector – is aimed at those who occupy their property for business purposes and will repay the mortgage from the income it provides.

It currently offers an attractive 6.69% fixed for five years, coupled with the hands-on support of YBS Commercial’s recently-expanded lending team in achieving their goals.

The product was launched as a result of broker feedback, in a bid to offer a purposeful lending solution which supports local communities and really makes a difference to brokers and their clients.

The intricate nature of this first deal required a real team effort from valuers, broker and customer, as well as internal teams, to get each stage of the process over the line.

Gary Pratt, relationship director at YBS Commercial Mortgages, who managed the deal through to completion, said:

“I’m delighted to have secured this first SME deal and we’re confident more will follow.

The launch of our new SME proposition marks a real milestone for us, and enables us to bring much-needed support to the small businesses which contribute so much to the communities in which they operate and the UK economy overall.

The effort which has gone into finalising it demonstrates the excellent service provided by our teams, ensuring a quick and smooth customer journey, reinforcing our strong relationships with both brokers and borrowers.”

Nick Cooper, director at Sandhill Homes Ltd, the business-owner who benefited, commented:

“The deal worked really well for us, and has helped us to achieve our ambitions – refinancing our existing properties and funding the building of a new housing development.

This will allow us to build 10 new homes, as well as employing at least 30 people.”

Laurie Baugh, managing director of Approved Finance Group, which brokered the deal, said:

“We’re excited to be first over the line on the new owner-occupied mortgage, offering the best combination of products to suit the borrower’s specific requirements, as well as the best value, and I’d like to thank the team at YBS Commercial for the proficient way they handled the transaction from start to finish.

The end result is that this established family business is able to proceed with its ambitious development plans – which will serve the local area once complete – as well as ensuring that they have liquidity in the business for their ongoing operations.”