YBS Commercial Mortgages: products, terms and eligibility

YBS Commercial Mortgages is a UK provider of commercial mortgages and bank lending. The legal entity named on its site is Yorkshire Building Society. It is based in Bradford. It is part of Yorkshire Building Society.

YBS Commercial Mortgages is a trading name of Yorkshire Building Society, a mutual that is part of the Yorkshire Group and is authorised by the PRA and regulated by the FCA and PRA. YBS says its commercial mortgages are not regulated by the FCA.

Everything on this page comes from what YBS Commercial Mortgages publishes itself. We show the date we last checked it, and we do not rate or rank lenders.

YBS Commercial Mortgages publishes 4 products for UK businesses. The table above gives the amounts and terms as it states them.

• Owner-occupier mortgages: Capital and interest, or interest only.
• Commercial investment mortgages: Capital and interest, part and part, or interest only.
• Semi-commercial mortgages: Capital and interest, part and part, or interest only.

Owner-occupier mortgages

£500,000 to £3 million on fixed rates, up to 75% LTV, terms of 5 to 25 years (25 years under £2 million, 10 over). Borrowers are limited companies, LLPs or partnerships with first legal charge.

Semi-commercial mortgages

£400,000 to £20 million, up to £5 million per property, up to 75% LTV, for mixed-use property at least 50% residential. Commercial elements need a full repair and insure lease; residential an assured periodic tenancy.

Limited company and portfolio landlord buy-to-let mortgages

YBS lists buy-to-let mortgages for limited companies and portfolio landlords, alongside holiday let, HMO and multi-unit freehold block options. Detail on these pages was limited.

YBS Commercial Mortgages says its finance is used for:

• Buying commercial investment property
• Owner-occupied business premises
• Mixed-use property
• Buy-to-let for limited companies

Sectors and business types it says it funds:

• Offices
• Retail units
• Industrial buildings
• Warehouses
• Mixed-use property

YBS Commercial Mortgages publishes these criteria. Meeting them does not mean an application will be accepted: every lender makes its own decision.

• Limited companies and limited liability partnerships (LLPs).
• Company registered in England and Wales.
• All shareholders and directors must be UK residents.
• Commercial investment and semi-commercial: 2 years' experience managing commercial assets.
• A business account with YBS is not required.
• Applications come through brokers (FCA regulated or registered, or members of NACFB or FIBA).

YBS Commercial Mortgages describes its process like this:

1. Apply through an intermediary on the YBS panel (FCA registered, NACFB or FIBA member).
2. Property is valued by a YBS panel valuer.
3. Affordability is assessed against ICR/DSCR tests.

Information it says it asks for:

• Evidence of 2 years' experience managing commercial assets

Every application is subject to status and the lender’s own criteria at the time.

A commercial mortgage is a long-term loan secured on business premises or investment property. Lenders look at the property’s value, the deposit, and whether the business’s profits or the rent comfortably cover the repayments.

Banks often lend across several products, from overdrafts to asset finance, and some can offer facilities under government schemes. See government-backed business loans for how those work.

Points YBS Commercial Mortgages publishes that are worth knowing:

• A first legal charge over the property is required.
• Valuation by a YBS panel valuer; lending based on the lower of valuation or price.
• Directors' personal contribution of £175,000 or 10%, whichever is higher, is listed in the criteria.
• Commercial mortgages are not regulated by the FCA.
• Semi-commercial: property must be at least 50% residential and in a good retail location.

Security and guarantees

A first legal charge on the property. Personal guarantees of £175,000 or 10% of the loan, whichever is higher, from one or more directors on the commercial products.

YBS Commercial Mortgages’s site states: “YBS Commercial Mortgages is a trading name of Yorkshire Building Society. Yorkshire Building Society is a member of the Building Societies Association and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registration number 106085. Commercial mortgages offered by YBS Commercial Mortgages are not regulated”

Protections differ by borrower type and loan size. Most lending to limited companies is not regulated consumer credit, so read the agreement and ask the lender what applies to you.

Other providers of commercial mortgages and bank lending with profiles here include Barclays, OakNorth Bank and Redwood Bank. Each profile uses that lender’s own published terms.

The full list, grouped by product type, is in our directory of UK business lenders.

Capzy is a credit broker, not a lender, and gets paid by the lender. One application lets your business compare options across lenders, so you can weigh this kind of facility against the alternatives. You can check your funding options with a soft search that does not affect your credit score. A full application to a lender may involve a hard search, and any offer is subject to status and lender criteria.