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Who we are

The Commercial arm of Yorkshire Building Society, YBS Commercial Mortgages offers an award-winning commercial mortgage service to both trading businesses and property investors who are based in the UK.

Over 25 years ago, we set up a specialist team to deal with commercial mortgage enquiries, and now the team has over 2,000 mortgage customers.

We are proud of our innovative and flexible approach.

All loans are subject to status and secured against property. Sometimes, additional security may be required. Arrangement fees will apply to all our products. Early repayment charges apply.
 

We provide:

  • Commercial investment, business owner occupier and limited company buy-to-let mortgages.
  • Lending amounts £500,000 - £20,000,000 maximum per portfolio.
  • Loan terms from 5 to 25 years.
  • Dedicated personal service from application through to completion.
  • Loans up to 75% LTV.
  • Named points of contact with direct dial contact numbers.
  • Both variable and fixed rates.

News

Increased LTV ratios for Commercial Investment

At the start of the Covid lockdown we took steps to adjust our lending criteria to match the changing market conditions and manage the economic uncertainties that the lockdown brought.

At the start of the Covid lockdown we took steps to adjust our lending criteria to match the changing market conditions and manage the economic uncertainties that the lockdown brought. You may remember that for limited company buy to let transactions we moved our criteria to allow additional lending as the circumstances around the residential housing market in the UK became clearer. Since then we have been pleased to see an increase in deal flow and completions for limited company buy to let transactions.

We have now completed a review of our Commercial Investment lending criteria. As with our buy to let range we are introducing a number of changes. We have increased the maximum loan to value ratio that we can accept. Full details are overleaf, but for key sectors we are returning to a maximum 75% LTV for certain sectors. There has also been an increase in the maximum lend available to certain sectors.

We will continue to review our criteria as the affects of Covid-19 unfold. As ever your feedback is a vital part of how we shape our products and deliver them to your clients. Please let us know directly if you have any comments or suggestions.

Key Highlights

Transaction Size

  • 75% Corporate BTL for existing customers to £20m
  • New Corporate BTL customers 75% LTV to £5m 65% to £15million
  • Maximum 75% LTV for Commercial Investment, subject to sector
  • Minimum transaction size £500,000

Maximum loan amount per unit

  • £5m for Commercial Investment (subject to sector)
  • £2m for Owner Occupied
  • £1m for Corporate BTL

Market Insight

Sector based approach to Commercial Investment LTV percentages

Max LTV 75% and max loan per property £5m

  • Takeaways (including with limited indoor seating)
  • Mixed use properties where the residential element contributes at least 75% of the rental income.
  • Construction
  • Information and communication e.g. data centres
  • Essential retail businesses * e.g. food retail, banks, chemists, DIY, pet stores, off-licences Warehousing & logistics.
  • Industrial properties let to manufacturers, transport / storage and companies involved in public administration.

Max 65% LTV and max loan per property £3m

  • “Non essential” retail businesses
  • Real estate activities e.g. Estate agents, surveyors
  • Wholesale retail e.g. cash and carry business, wine merchants.
  • Education e.g. small nursery.
  • Office based businesses in a broad range of sectors, please contact us for specific details
  • Cafes / coffees shops.
  • Maintenance of motor vehicles.

Additional enhancements to our buy to let range

We have taken some time during July to take stock of the changes that we have made during the first half of 2020. Since relaunching last year we have seen plenty of internal changes. Our plans, as with most of our sector, have been impacted by Covid-19...

We have taken some time during July to take stock of the changes that we have made during the first half of 2020. Since relaunching last year we have seen plenty of internal changes. Our plans, as with most of our sector, have been impacted by Covid-19 and it remains to be seen what the ultimate affect of lockdown will be on the wider economy and the commercial finance sector. Whatever they are our commitment to remain open for business will be unchanged.

From a product perspective we have been focused on enhancing our Limited Company Buy to Let proposition. We have announced the changes we have made and new product launches in this newsletter. On the following page we have provided a summary of all our current Limited Company Buy to let criteria for easy reference.

Our broker panel has also changed radically, growing significantly in line with our plans to increase the amount of funding we are making available. We have looked at the level of business we have been doing with each of our panel members and will be sharing that with each of you individually over the next few weeks. We are committed to developing the best relationships that we can with our panel brokers and want to hear your feedback.

If you have any comments on our products or service please don’t hesitate to let us know.

Key Highlights

  • LTV 65% for Owner Occupied and Commercial Investment
  • 75% for Corporate BTL for existing customers
  • 65% for new Corporate BTL customers borrowing up to £15m

Maximum loan amount per unit for new security to:

  • £3m for Commercial Investment
  • £2m for Owner Occupied
  • £1m for Corporate BTL
  • Increased maximum customer exposure to £20m for existing YBS customers, £15m for new customers

YBS Commercial Lending Limited Company Buy to Let Criteria August 2020

Product Max LTV (1) Fixed Term Loan Term Pay Rate Arr. Fee Proc. Fee Min. Loan Max. Loan Reversion Rate ERCs Affordability Assessment
Corporate BTL 65% 5 Year Up to 25 years 3.35% 1.25% (1% added to loan) 0.75% (Paid by YBS) £500k £1m (per unit) SVR 5%, 4%, 3%, 3%, 2% 125% ICR @ higher of 4% and Pay Rate +0.75%
75% 3.55%
75% 10 Year 3.6% 5%, 5%, 5%, 5%, 4%, 4%, 3%, 3%, 2.5%, 1.5%
Personal BTL 65% 5 Year 3.35% £1.5m (2) 5%, 4%, 3%, 3%, 2% 135% ICR @ higher of 5% and Pay Rate
75% 3.55%
75% 10 Year 3.6% 5%, 5%, 5%, 5%, 4%, 4%, 3%, 3%, 2.5%, 1.5%
Holiday Let 75% 5 Year 3.85% £500k 5%, 4%, 3%, 2% Net income(3) 125% ICR at Higher of 5% Product rate + 1%

(1) Maximum 65% LTV for new build flats

(2) Minimum loan £1.5m and 6+ properties OR Minimum £3m loan (any number of properties)

(3) Net income = Gross holiday let income less actual letting agent costs and business rates (if payable)