YBS Commercial increases maximum loan size and LTV limit for select properties

The lender restricted the loan size and maximum loan to value (LTV) on some commercial properties, such as non-essential retail and wholesale, to £3m per property and up to 65 per cent LTV. This change was brought in during the pandemic and has now been reversed. 

Going forward, YBS Commercial will lend up to £5m per property and up to 75 per cent LTV, with a total portfolio limit of £20m. This is open to all businesses regardless of sector. 

The lender has also removed the £3m restriction on lending against properties with solely retail rental income. This has now been increased to £5m. It also no longer requires retail properties to be 15 thousand square feet in size or smaller to be considered for a commercial loan. 

Create more certainty

Tom Simpson (pictured), managing director at YBS Commercial Mortgages, said: “This move will create more certainty, removing unnecessary complexity for brokers to navigate, especially when dealing with clients with portfolios stretching across multiple sectors. 

“What’s more, as well as all types of businesses being able to benefit from the same loan conditions, the process will be more straightforward for teams across the business, enabling us to react to the changing market in a more streamlined and dynamic way.” 

He added: “This change represents our latest bid to provide much-needed support for the commercial investment market, which – especially in the case of certain non-essential sectors – is still recovering from the pandemic.  

“This move follows in the footsteps of our new fixed rate commercial investment product, launched in March, introduced to enhance our support for property investors.”