InterBay has made key changes to its commercial and semi-commercial mortgage lending criteria, resulting in fewer restrictions for first-time landlords, flexible lease terms, cheaper deals and bigger loans.
The lender, part of OSB Group, said the updates reflect the insights and challenges shared by brokers and strengthen InterBay’s commitment to providing a more flexible and supportive lending service.
Market-value lending
InterBay will now lend up to 75% of market value, rather than defaulting to the lower of market value or vacant possession value. This change allows larger loan sizes on income-producing assets, provided the loan does not exceed 85% of vacant possession value and the valuer confirms a maximum 12-month letting and sale period.
Cheaper pricing on mixed-use properties
Semi-commercial properties where the residential split is more than 50% will now qualify for lower semi-commercial pricing. Previously, this was set at 55%.
The new-build energy advantage
Sponsored by Halifax Intermediaries
Lease terms simplified
Where a property is income-producing at the point of origination, and this can be validated, the minimum lease period requirements have now been removed.
The requirement for a 60-month remaining lease term at loan expiry has now been removed.
Vacant unit changes
Cases will now be considered where there is sufficient rent to cover vacant units. Non-structural works to enhance the property condition are also accepted.
First-time landlords
To make it easier for new commercial landlords to access funding, the requirement for two years’ relevant sector experience has been removed.
Marc Callaghan (pictured), head of commercial lending at InterBay, said: “These criteria changes are a direct result of listening closely to our broker partners and understanding the real-world challenges they face when placing commercial and semi-commercial cases.
“Ultimately, these changes mean faster decisions, broader eligibility and more opportunities to place complex deals with confidence. We’re committed to evolving our proposition in step with broker feedback, and today’s updates are another crucial step in strengthening the way we do business together.”
