InterBay has widened its commercial and semi-commercial lending criteria with six changes designed to give brokers more scope on loan sizing, lease terms and first-time landlord cases.
The specialist lender, part of OSB Group, said the updates followed consultation with broker partners and were intended to make it easier to place more complex commercial and semi-commercial business.
Among the most significant changes is a shift to market value lending of up to 75%, rather than using the lower of market value and vacant possession value as the default.
InterBay said this would allow larger loans on income-producing assets, so long as borrowing does not exceed 85% of vacant possession value and the valuer confirms a maximum 12-month letting and sale period.
The lender will also use the valuer’s opinion of market rent rather than passing rent, a move that may help cases where current income does not fully reflect the property’s potential.
InterBay has also adjusted its pricing treatment for mixed-use assets. Semi-commercial properties where the residential element accounts for more than 50% will now qualify for lower semi-commercial pricing, compared with the previous threshold of 55%.
Elsewhere, the lender has relaxed a number of leasing restrictions. Where a property is income producing at the point of origination and that income can be validated, the minimum lease period requirement has been removed. It has also dropped the requirement for a 60-month remaining lease term at loan expiry.
Vacant units within multi-unit assets will now be considered where there is enough rental income to cover those voids, while non-structural works aimed at improving the property’s condition will also be accepted.
InterBay has further widened access for newer borrowers by removing the requirement for first-time commercial landlords to have two years’ relevant sector experience.
Marc Callaghan (pictured), head of commercial lending at InterBay, says: “These criteria changes are a direct result of listening closely to our broker partners and understanding the realworld challenges they face when placing commercial and semicommercial cases.
“Ultimately, these changes mean faster decisions, broader eligibility and more opportunities to place complex deals with confidence. We’re committed to evolving our proposition in step with broker feedback, and today’s updates are another crucial step in strengthening the way we do business together.”
The changes were welcomed by brokers, with Lucy Waters, managing director at Aria Finance, describing them as a practical response to current market conditions.
Waters adds: “This is a strong move that reinforces InterBay’s role as a key partner in the commercial lending space. These enhancements show InterBay is serious about supporting brokers and their clients during more challenging times.”
“The move to market value lending and the easing of lease restrictions will unlock opportunities that simply weren’t viable before. It’s refreshing to see a lender act directly on broker feedback and make changes that will have a real, positive impact for our clients.
“It’s exactly the kind of pragmatic, solutions-led approach we need from all lenders right now.”
For brokers, the combined effect of the changes is likely to be felt most in cases involving mixed-use assets, shorter leases and borrowers with less direct commercial property experience. At a time when case complexity remains high, lenders willing to revisit long-standing criteria can gain ground with advisers looking for more room to structure deals.
