InterBay Commercial, part of specialist lending group OneSavings Bank, announces reduced rates across its Commercial and Semi-Commercial range supported with a new, simplified pricing structure. The new range is available immediately.
Pay rates will now start from 4.89% for Commercial and 4.29% for Semi-Commercial and feature standardised pricing irrespective of loan size, as well as fewer LTV bands.
In an innovative move, loan pricing will be aligned to asset quality with the introduction of a simple 3-tier rate structure linked to property yield. This replaces the existing Prime and Standard rate approach.
Yields will be calculated by dividing market rent by market value (based on vacant possession) and, even where a property is high yielding, nearly all rates are lower than now.
Darrell Walker, Head of Sales, Second Charge & Commercial, OneSavings Bank, said, “We’ve taken a fresh approach to the pricing of Commercial and Semi-Commercial loans by rewarding a quality asset with pricing based on yield, even if the property is vacant. The adoption of this new pricing model and its simplicity reflects broker demand for more appropriate finance for better quality Commercial and Semi-Commercial properties”.
Revised rate tables for Commercial and Semi-Commercial mortgages can be found at www.interbay.co.uk