‘Experts in providing bespoke solutions for brokers’

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InterBay Commercial

InterBay Commercial has said Yes to joining the Bridging Loan Directory and promoting its services to a new audience of brokers in the post-pandemic economy.

InterBay, which is part of the OSB Group, specialises in supporting the commercial, semi-commercial and buy to let business sectors.

As explained by Emily Machin, head of specialist lending at InterBay, they are “experts in providing bespoke solutions for brokers. Our in-house teams, including national sales team, real estate, completions and underwriting, work together to craft tailored solutions to support borrowers with their lending goals”.

Machin adds: “With our extensive market knowledge, experienced team and range of products, we look to say ‘yes’ where others say ‘no’.”

InterBay recently reintroduced a maximum 80% LTV limit (up from 75%) across its buy to let range. To support the return of higher LTVs, the lender has also launched two new 2 and 5 five-year fixed rate products.

Further enhancements include removing the 20-bed limit on HMO applications and removing the maximum loan size to support large loan cases.

It also offers up to 70% LTV for semi-commercial at 5.39% for 5 years and up to 65% LTV for commercial properties valued as high as £2million.

In addition, it recently launched a range of holiday let products as a result of the growth in UK staycation trips in the pandemic.

InterBay says the products are aimed at personal ownership and limited company landlords looking to let out properties on a short-term holiday let basis.

The range, which is available in England and Wales, features rates from 3.84%, LTVs of up to 70% and a choice of either a two- or five-year fixed rate product. Loan sizes range from £50,000 up to £1million, with no maximum property value.

Machin says despite such areas of growth the pandemic was challenging for the business. But she is confident that the recovery is already underway.

“Semi-commercial in particular has always been our bread and butter and we’ve seen a strong level of enquiries and deals particularly from professional investors who are looking to diversify,” she explains.

“There’s also been an uptick in funding requests for industrial warehouses which directly relates to the internet shopping explosion that pretty much all of us have been a part of as we’ve adjusted to a different way of life.”

She adds that the business currently has every single product line open, reflecting its confidence in the markets it operates in.

“We thrive as a specialist commercial lender that expertly utilises manual underwriting and takes the broad view—regardless of the property, applicant or asset class,” she states.

“I think that puts us, and specialist lending as a whole, in a strong position going forward, because the market has become more complex than it was 16 months ago.

As a prudent lender, we always look at the wider picture when making assessments, i.e., using our in-house real estate function in terms of the asset and our experienced underwriting team when checking the borrower profile. Hence, our criteria are well placed for lending to businesses that have been able to trade through the pandemic.”

She sees potential growth in pubs and restaurants in suburban areas because of differing work patterns and also to some extent mini supermarkets to accommodate lifestyle changes.

“I think we’ll see an improved work/life balance which means that shops and restaurants may need to adapt,” she states. “As we come out of the pandemic we may witness more changes, such as businesses using work hubs rather than continuing long leases.

However, the way commercial lending is assessed, it already gives a robust perspective, and I don’t see InterBay massively deviating from that in the short-term.”

What it does hope for is the chance to promote its services to a new audience via the Bridging Loan Directory.

“It is a great opportunity for InterBay Commercial to reach brokers who may not be aware of the type and complexity of lending that we can cover,” Machin says.