YBS Commercial Mortgages Introduces New Tracker Product and Cuts Rates

YBS Commercial Mortgages, the commercial lending arm of Yorkshire Building Society, has announced significant enhancements to its product offerings, including the launch of a new tracker mortgage and rate reductions across its fixed-rate ranges. These changes are designed to provide greater choice and flexibility for landlords and investors in a dynamic market.

The new three-year tracker deal is available at a variable rate of 6.75%, calculated as the Bank Base Rate plus 1.50%. This product offers flexibility for borrowers in an environment of interest rate uncertainty, allowing for capital-and-interest or interest-only repayment options. Loans up to a maximum of £20 million can be considered, with a loan-to-value (LTV) of up to 75% and a 2% arrangement fee.

Key Benefits

Tom Simpson, Managing Director of YBS Commercial Mortgages, highlighted the timely introduction of the tracker product: "This product recognises the current, volatile environment, and uncertainty around interest rates, with borrowers carefully considering their options – in many cases, looking for something other than to fix. We’re bridging that gap for these borrowers, offering them better choice and flexibility, and with many predictions that the Bank rate may drop for the first time in more than four years this summer, the timing couldn’t be better."

In addition to the new tracker, YBS Commercial Mortgages has implemented rate cuts of up to 20 basis points (bps) on selected fixed-rate products. These reductions apply to its core buy-to-let range, as well as specialist offerings for holiday lets and Houses in Multiple Occupation (HMOs). The semi-commercial range, designed for part-residential, part-commercial assets, has also benefited from the same rate reductions.

Eligibility Criteria

Key highlights of these rate cuts include:

• Buy-to-Let: A five-year fixed rate at 4.90% (previously 5.10%) for BTL clients borrowing more than £1 million, available up to 65% LTV with a 3% fee.
• Holiday Let: A five-year fixed rate at 5.55% (previously 5.75%) for clients purchasing a property as a holiday let, available up to 75% LTV with a 2% fee.
• Semi-Commercial: A five-year fixed rate at 6.60% (previously 6.80%) for semi-commercial assets, available up to 70% LTV with a 3% fee.

Mr. Simpson added, "Reducing rates across our fixed rate BTL and semi-commercial ranges reflects our ongoing commitment to maintaining the competitiveness of our range and offering better value wherever possible to landlords and investors alike."

Application Process