Earlier this month the lender also reintroduced its semi-commercial product range after it withdrew from both markets earlier this year as the pandemic hit.

The new commercial product range has rates starting from 5.74 per cent with two, three or five-year fixed terms and goes up to a maximum 65 per cent loan to value (LTV).

Loans are available between £150,000 and £1.4m for properties up to £2m in value, however the lender noted that it will consider larger loans or property values if requested.

It added that brokers with a proposal are encouraged to speak to their local business development manager for guidance and to help tailor their application.

OneSavings Bank group sales director Adrian Moloney said: “InterBay Commercial are back to doing what they do best, offering their intermediary partners a range of commercial, semi-commercial and buy-to-let propositions, fully supported by an award winning business development team.”

The lender has also brought back semi-commercial products but it is not able to obtain valuations on these at the moment.

Interbay, which is part of One Savings Bank, had been forced to stop lending as a result of restrictions placed on valuers in March.

It has now returned with a pair of deals using a desktop valuation-based approach, with a two-year fix available at four per cent and a five-year fix and 4.1 per cent.

Both products have a 1.7 per cent fee, although this will be reduced to 1.45 per cent for existing borrowers and there are no assessment or valuation fees.

Loan sizes range from £100,000 to £700,000, the maximum property value is £1m, interest-only options are available, and it will also accommodate complex ownership structures including limited companies and partnerships.

It will consider lending on houses, flats, blocks of flats, multiple units on one freehold, new-build at up to 60 per cent LTV, and properties converted during past two years at up to 60 per cent LTV.

However, other properties such as houses in multiple occupation (HMOs), listed buildings, modern methods of construction and those adjacent to or above commercial premises are excluded.

Submitting cases

Desktop valuations will be reviewed by Interbay once completed and the lender asked brokers to understand that cases may take longer than normal to progress.

Once the valuation has been reviewed by the underwriter and they are happy to proceed, the case will be processed in the usual manner.

However, it added that it was unable to accept any valuation challenges, and the underwriter’s decision will be final.

For brokers already with eligible pipeline cases at pre-offer stage, Interbay may be able to switch the product if desired.

It will also consider reducing loan amounts on exiting applications to meet the 70 per cent LTV limit.

When switching a product, any fees that can be refunded will be done so when the application reaches formal offer.

Worked closely with valuers

A statement on the lender’s website said: “Following government restrictions introduced to prevent the spread of Covid-19, we’ve worked closely with our valuation panel partners and are pleased to confirm we’re now able to accept desktop valuations on buy to let first charge mortgages.

“With up to 70 per cent LTV available on properties up to £1m, our buy-to-let products can help your clients with larger loans on higher valued properties.

“This, coupled with our approach to lending to investors with more involved ownership structures, could really help your clients.”

Semi-commercial lending

A pair of semi-commercial products are also available at up to 60 per cent LTV – a two year fix at 4.85 per cent and a five-year fix and 4.95 per cent, both with 1.5 per cent product fee that will be reduced to 1.25 per cent for existing borrowers.

“To enable you to get back to business as quickly as possible, we’re pleased that we are able to work with you to progress your semi-commercial cases,” Interbay said.

“We can now underwrite your cases to valuation instructed stage and work closely with you to ensure that we can proceed quickly when physical valuations recommence.”

An Interbay spokesman told Specialist Lending Solutions: “InterBay Commercial has today launched a new range of semi-commercial products up to 60 per cent LTV and buy to let products up to 70 per cent LTV, available on properties with a value of up to £1m.

“While physical valuations remain unavailable due to government restrictions, semi commercial applications will be underwritten up to the valuation stage, and held until restrictions are lifted.”

Our team of experts will always go the extra mile to find solutions for your clients. Whether it’s helping them through changes in the market or spotting any potential pitfalls on a case –the better relationship we have with a broker, the easier it is to help them.

So that you can build great working relationships with your clients, we’re sharing some of the common case errors that we see and, more importantly, how you can avoid making them.

Provide all required documentation

• This is the most common factor we face that delays applications, which is why we provide brokers with a check list of all the required documents. This includes evidence to prove identity and residency, bank statements, and proof of income; all of which are essential for cases to be completed on time.

Cover all the missing details

• Details are essential for complex cases. Important information may include date of birth, nationality, or the National Insurance number for each applicant. If anything like this is missing, a case may be rejected. Make sure you crosscheck the little details, as this will help provide a smoother application process and limit potential delays.

Build a background to the case

• The more background you provide on a case, the easier it can be for us to make a decision. Does the applicant have experience in this sector? How many properties are involved? What makes this case compelling? The more background and additional information you can provide the better.

Complex cases aren’t the easiest, so it’s vital that you approach them from every angle and don’t miss any essential information.

Our application checklist can also act as a handy reminder of what documentation to supply when submitting a case.

However, don’t forget that our senior business development managers are always on hand to make the complex simple, and will work with you to solve your cases.

Want to know more about InterBay Commercial?

Visit our website and see where we could help you with your next commercial, bridging or complex buy to let case.

What locations and how many advisers and broker firms do you cover in your role?

I cover the South East region including the M25 corridor and I look after 190 key accounts which include clubs, networks and direct agencies.

How do you establish and maintain a good relationship with brokers?

Relationship management for me is all about listening and really getting to know the broker and understanding their business. This background work is really useful when it comes to an application as this helps me to shape the right deal for the broker and ensure a positive customer outcome. It also means that I am better prepared to negotiate on behalf of the broker if any complications arise. I can only work effectively, if I have all the information upfront, so please don’t hold anything back.

What personal skill is most valuable in doing your job?

Good communication skills without doubt are an absolute must, alongside strong interpersonal skills. Keeping calm under pressure is also high up on the list.

What personal skill would you most like to improve on?

Sometimes my enthusiasm may need to be turned down a notch – my colleagues are the best in their fields and at times I need to stand back and let them get on with the task in hand.

What’s the best bit of career-related advice you’ve ever been given?

Anything is achievable if you put your mind to it.

What is the most memorable property deal you’ve been involved in?

I helped one of InterBay’s broker partners on a £4m deal where the client was struggling to obtain finance and getting very close to his deadlines. I quickly arranged to meet up with the broker and the client to gather as much information as possible which included detailed explanations of some blemishes. It was quite an adrenaline rush to get all the pieces in place but we got the case over the line within the deadline.

If you were head of the FCA for the day, what would you change about regulation in the mortgage industry?

I would revise the definition of a portfolio landlord as in today’s buy-to-let sector, four mortgaged properties seems low. The rules were designed to look at the wider portfolio when underwriting a new buy-to-let mortgage and larger portfolios, say ten properties or more, is where you’d need to do a greater degree of due diligence. I’d make this a top priority as it would certainly help ensure underwriting is more risk based.

What was your motivation for choosing business development as a career?

I fell into banking by accident to be honest but I’ve been in the industry for over 15 years and enjoy meeting new people, building positive relationships and bringing a solution to the table. Luckily this job involves all those elements and I really enjoy the daily variety so I would call it a happy accident.

If you could do any other job in the property sector, what would it be and why?

I would probably become a developer or investor as I’ve picked up lots of knowledge along the way.

What did you want to be growing up?

A policeman or a member of the armed forces.

If you could have one superpower, what would it be?

To predict the future.

What’s the strangest question you’ve ever been asked?

“Daddy, do you shampoo your eyebrows?”

The Competition and Markets Authority (CMA) estimated that the two firms, which are parents of Kent Reliance, Interbay, and Precise Mortgages respectively, could account for as much as 50 to 60 per cent of the limited company market.

Although the regulator accepted that the methodology used could overstate this position, it added that the lenders could not identify any specific competitors large enough to significantly alter this.

In its final report into the merger, which was approved last month, it revealed that OSB and Charter Court provided evidence showing the sizable impact of TMW entering the limited company market last year.

This evidence showed TMW now had the largest share of broker recommendations, ahead of the merging pair.

The CMA noted that TMW’s “strong position in other BTL customer segments and BTL lending overall, and its ability to access cheaper funding as part of Nationwide Building Society” would enable it to offer lower prices for some customers

“The CMA considers that TMW is likely to provide a stronger constraint on the parties post-merger than its current estimated share of supply indicates, particularly because it started supplying limited landlord customers partway through 2018 and so the share of supply does not include twelve months of lending,” it said.

The CMA added that, although the lenders were two of the four main competitors in supplying BTL limited company mortgages and had a high estimated share of supply, it believed “the presence of alternative suppliers and particularly the growth of competitive options through recent entry and expansion in this segment will constrain the parties post-merger”.

Last year, TMW managing director Paul Wootton told Specialist Lending Solutions the lender had seen “strong demand” at the “upper end of expectations” since it re-entered the limited company buy-to-let sector.

What locations and how many advisers and broker firms do you cover in your role?

I cover the north of the UK for Interbay Commerical, which means working with any adviser or firm able to access us via a mortgage club, the networks we have agreements with, commercial brokers and specialist packagers.

How do you establish and maintain a good relationship with brokers?

I was a broker in the past and that has really helped me to see situations from both sides. When I was a broker, the best BDMs I came across genuinely cared, they could put themselves in my shoes and were able to add value and share best practices. Never lie, always be honest if you cannot provide something and manage expectations.

What personal skill is most valuable in doing your job?

The BDM role is consultative and therefore it’s so important we understand a broker’s background and their business before doing anything else.

What personal skill would you most like to improve on?

Since joining One Savings Bank I’ve developed a particular interest in property taxation and complex portfolio incorporations which I’m always trying to learn more about.

What’s the best bit of career-related advice you’ve ever been given?

Don’t try to be anyone other than yourself, otherwise you’re guaranteed to fail.

What is the most memorable property deal you’ve been involved in?

Over the last 12 months we’ve seen a substantial increase in the amount of developer exit deals we’ve completed – each and every one has been interesting. The profit in a development is always in the last couple of units to sell, that’s why not having to rush the sales to repay the development finance is crucial.

If you were head of the FCA for the day, what would you change about regulation in the mortgage industry?

That’s a tough question, but my first priority would be to call for a period of stability and I would invite feedback from brokers and lenders which could be implemented to help drive positive and consistent customer outcomes

What was your motivation for choosing business development as a career?

My father-in-law was a successful BDM for a protection provider, and so from my early twenties I was immersed in his stories about his role which eventually had a huge influence in my choice of career – although I have the distinct impression that there was a lot more time on the golf course then compared to now.

If you could do any other job in the property sector, what would it be and why?

My wife will tell you that I’m obsessive about property development and we’re currently in the middle of our third refurbishment.  Although with a young family and two busy full time jobs we may have bitten off a little more than we can chew on this latest one!

What did you want to be growing up?

My father was a mechanical engineer and I grew up helping him rebuild Land Rovers and our family home, it was something I loved doing. There was never any doubt that I’d end up in a role which involved technical knowledge and property – I find it hard to go a weekend without picking up some sort of power tool.

If you could have one super-power, what would it be?

Now that really is a difficult question. I’ve seen a number of people close to me struggle with serious illness and the ability to remove suffering would be a wonderful thing.

And finally, what’s the strangest question you’ve ever been asked?

My children are a great source of fantastic questions. My five-year-old keeps asking for a pet dolphin, but despite being a lovely idea, I’m really not sure where we’d keep it.

More than two-thirds (70%) of the 200 brokers surveyed by the lender believed the demand for bridging had risen in the last year with only 8% saying it had fallen.

A similar number (65%) said the key reason they would take on short-term finance clients was the ability to diversify, while 60% said the main driver was the increased demand for bridging cases.

Perhaps unsurprisingly, one of the attractions of moving into bridging loans was the higher fees obtainable, which were welcomed by 65% of respondents.

Brokers were also positive about the growth of the sector with 62% believing it would continue to grow compared to 5% suggesting it would start to shrink.

Rising house prices (42%) and increasing demand from buy-to-let investors (40%) were seen as the main drivers for growth in the sector.

More education for brokers

InterBay Commercial head of sales Darrell Walker said with the sluggish housing market brokers needed to be flexible to address their clients’ needs.

“As the demand increases for specialist finance products, brokers should make sure they are informed,” he said.

“This requires more education around the options lenders offer and the speed at which the solution can be secured.

“But most important is the relationship that has been built with the BDM who is best placed to inform brokers on product availability and criteria guidelines as well as offering flexible tailored advice,” he added.

Dual representation means that law firm Clarke Willmott can act for both InterBay and the borrower on bridging loans up to £2m.

The lender said this would help provide brokers a faster, efficient and cost effective method of accessing short term finance on behalf of their clients.

Tax reform key for bridging

Also, research released by InterBay Commercial revealed 52% of brokers believe reform to tax legislation for property investors would boost the bridging market.

One in five felt the removal of the additional 3% stamp duty land tax for landlords would help to drive growth in the market, while only 16% called for the reversal of the recent changes to the tax treatment of mortgage interest for landlords.

Meanwhile, more brokers believe remaining in the EU (15%) would have a positive effect on the market than a soft Brexit (9%) or a hard Brexit (3%) combined.

Darrell Walker, head of sales at InterBay Commercial (pictured), said the swathe of tax changes in recent times have left an indelible mark on the bridging and wider buy-to-let market.

He added: “Some landlords have been forced to recoup higher tax costs through higher rents, others no longer have the funds to refurbish properties, and many amateurs have left the market altogether.

“At a time when the supply of affordable property across all tenures remains a key economic challenge across the country, taking steps to encourage, rather than deter investment into the sector would go some way to alleviating our current housing crisis. Taking a second look at the tax burden investors must shoulder is a good place to start.”

The packager said the complexity of the case required close working alongside the client’s mortgage broker, tax adviser and the lender.

Interbay, which is part of OneSavings Bank, agreed a bespoke deal for the customer due to its scale.

Complete FS’ director Damian Cain said ensuring the tax situation was correctly addressed was vital.

“Due to the complexity of this deal, we requested the adviser work closely with the customer’s tax specialist to ensure that a limited company structure was indeed the right solution and that the correct procedures were followed to make it happen,” he said.

“At the same time, we looked at all the potential remortgage options and having talked it through with some of our lenders, we decided to opt for Interbay as they had the ability, expertise and experience to assist with such a large and complicated case.”

One of our larger loans

OneSavings Bank sales director Adrian Moloney said the lender had formed a good working relationship with Complete.

“This is one of the larger loans we have provided and due to its complexity, required close and open co-operation between Complete and ourselves to ensure the right outcome was delivered for the customer and met his adviser’s requirements,” he said.

“We are delighted to have been able to assist and provide a solution, which might very well have not happened without the relationship between us and Complete FS.”

Choice Mortgage Solutions director Chris Croake added that he was pleased with how the deal was handled and the outcome for his client.

In its half-year results the lender, which includes Kent Reliance and Interbay, said it had seen demand for buy-to-let remortgaging increase to supplement the industry-wide drop in landlord purchases.

It noted that demand for five-year fixed rate deals in the sector continued to grow and it remained a very competitive market.

“The core buy-to-let segment is demonstrating robust demand from professional and incorporated landlords with high levels of refinancing partially offsetting lower purchase activity and reduced demand from amateur landlords,” the lender said.

Remortgaging and limited company

Under its Kent Reliance brand, remortgages represented around 58% of new originations.

Professional or multi-property landlords accounted for 79% of buy-to-let completions by value during the first half of 2018 and limited company purchase applications rose to 71% of total purchase applications, up from 69% in 2017.

Five-year fixed rate products continued to rise in popularity totalling 59% of completions, up from 43% at the end of 2017.

However, the value of its residential lending slipped 16%, although OSB said it was seeing good levels of applications from its new range of products launched towards the end of the second quarter.

And it is investing in technology with plans to launch a new mortgage origination platform in early 2019.

Profits and ICR up

Overall pre-tax profits at the lender were up 17% to £91.8m in the first six months of 2018 compared to £78.4m in the same period last year.

The weighted average loan to value LTV of the mortgage book remained at 65% with an average LTV of 69% on new origination in the first half.

Meanwhile the average interest coverage ratio (ICR) increased in the period to 192% from 185% at the end of 2017.

Group CEO Andy Golding said: “While regulatory and tax changes in the buy-to-let market have dampened industry-wide demand for new purchase mortgages, this has been partially offset by an increase in demand for remortgages.

“We focus on the professional buy-to-let market where trends remain positive. Demand for five-year fixed rate products has risen noticeably across the market with competition continuing to increase, however we continue to see good opportunities for growth and our InterBay Commercial business continues to flourish.

“Given the growth already achieved this year and considering the current pipeline and application levels for the third quarter to date, we now expect to deliver net loan book growth of high-teens in 2018, while maintaining an appropriate margin for the risks we are underwriting,” he added.