YBS Commercial Mortgages cuts interest rates

By Bridging Loan Directory 10th January 2024

YBS Commercial Mortgages has made some great positive changes this week – effective today (Wednesday 10 January) – right across its product range, benefitting brokers and their clients.

The commercial lender has cut rates by as much as 0.50% on its commercial investment range designed for loans on retail, office, industrial, warehousing, quality leisure facilities and other kinds of commercial property, and has also introduced tiered pricing.

This means that commercial investors who wish to borrow more than £1 million can benefit from rates starting from 6.99% (was 7.49%). Rates for those borrowing under £1 million start from 7.40% (was 7.49%).

The five-year fixed rate semi-commercial product, designed specifically for part-residential, part-commercial assets, also sees its rate reduce to 6.90% (was 7.10%) up to 60% LTV; and 6.95% (was 7.15%) to 70% LTV.

Commercial landlords also benefit from the changes, with a rate cut of 0.30% for selected products from the lenders’ buy-to-let range, and the specialist Housing of Multiple Occupancy (HMO) product has also been discounted by 0.30%, taking rates to 6.00% (was 6.30%).

The specialist Holiday Lets product is set to benefit from an even bigger discount, with rates reduced by 0.40% – now at 5.95% – positive news for those looking to complete a purchase in time for peak holiday season this year.

Highlights of the new range include:

A five-year fix for commercial investment at 6.99% (was 7.49%) on loans over £1 million, up to 75% LTV, with a 2% fee
A five-year fix for buy-to-let clients at 5.25% (was 5.55%) on loans over £1 million, up to 65% LTV, which comes with a 3% fee
A five-year fix for buy-to-let clients at 5.05% (no change) on loans over £1 million, up to 65% LTV, with a 5% fee
And a five-year fix at 5.95% (was 6.35%) up to 75% LTV, for clients purchasing a property as a holiday let, which comes with a 2% fee.

Tom Simpson, managing director of YBS Commercial Mortgages, said:

“We’re absolutely thrilled to start the year with great news for brokers, reducing rates right across our range of products, following the markets’ response to pre-Christmas inflation data, which has led to a drop in swap rates.

These changes reflect our desire to pass on value wherever we can to brokers and their clients, maintaining our commitment to the commercial market and retaining our competitive edge.

We will continue to closely monitor market trends, taking these opportunities to support all our brokers and clients as much as possible as the year progresses.”