15 May 2023

YBS Commercial Mortgages has completed its very first fixed-rate commercial investment mortgage in just five weeks. This included finalising offer to completion in just seven working days, with a decision in principle (DIP) issued within one working day.

The deal was completed by the South-East regional hub, based in Peterborough, and incorporated the purchase of a mixed-used, multi-tenanted property with a ground floor bar and restaurant, as well as three self-contained offices, located in Woolwich, London.

The loan was worth more than £1.2 million and was confirmed at the lender’s fixed rate of 6.99% on a capital repayment basis.

The commercial lender launched its five-year fixed-rate commercial investment offering in March, in direct response to broker feedback. The product, available for loans on retail, office, industrial, warehousing, quality leisure facilities and other kinds of commercial property, can be accessed on a capital-and-interest and interest-only basis, and was created to enhance the lender’s support for property investors and bolster the economy.

The first deal wasn’t without its challenges, including the fact that the property was an auction purchase which needed to complete quickly, meaning that speed was of the essence. This required a real team effort from valuers, the broker and the customer, as well as internal teams, to get each stage of the process over the line, and resulted in application to offer in just 16 working days, with offer to completion in just seven. The customers are delighted that the defined timescales were met and intend to continue letting the building.

Mark Setchell, relationship director for the South-East team at YBS Commercial Mortgages, who managed the deal through to completion, said: “I’m delighted to have secured this first fixed rate commercial investment transaction and we’re confident many more will follow, based on the level of enquiries we’ve seen.

“The effort which has gone into enabling this purchase demonstrates the excellent service provided by our teams, ensuring a quick and smooth customer journey, reinforcing our strong relationships with brokers and borrowers.

“Ensuring such a rapid completion has not only helped the customer to achieve their goals, but has also supported the commercial property market in what’s currently a challenging environment for landlords due to interest rate volatility, high property prices and changes to regulations.”

Eugen Grosz, from Starglow Finance, who brokered the deal, said: “Due to the nature of the purchase, the client was under pressure to arrange the necessary funding in a short timeframe.

“YBS Commercial made the application journey a pleasure and I’d like to thank Mark and the team for their efforts in getting this over the line – they really delivered what they promised through the speed, efficiency and transparency of this transaction.”