The lender will now consider two years’ understanding of commercial investments, where previous its policy was two years’ experience of managing commercial property.
The move gives YBS underwriters discretion – where it makes sense and is based on evidence supplied by brokers and borrowers – to progress applications from those who may not have two years’ experience.
Cases will be considered based on their own specific circumstances.
However the lender added that “ownership of properties, in isolation, does not always translate into capably managing commercial assets.”
Mike Davies, head of business development at YBS Commercial Mortgages (pictured), said: “We recognise that different types of commercial property assets require different levels of management experience, though it remains absolutely critical that we only lend to borrowers with the right experience — there is no ‘one-size fits all.’”
“This change gives our underwriters discretion to process good quality applications where it makes sense to do so responsibly. While a convenience store with a long lease may require no hands-on management, a multi-let office block with short leases will be much more management heavy,” Davies added.
“By considering a balance of experience, knowledge and skills, we’re building on our promise to be a long-term, stable lending partner,” he said.