YBS Commercial Mortgages May 2021 Updates: New HMO Product and Criteria
YBS Commercial Mortgages introduces a new 5-year fixed-rate HMO product along with updated landlord experience criteria and maximum customer exposure details. Learn about the expansion of services, key contacts, and growth achievements since the relaunch as YBS Commercial Mortgages.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Broker panel Products & Processes UPDATE May 2021 Updates: NEW 5 Year Fixed Rate HMO Product - here HMO Landlord Experience Criteria - here HMO Maximum Exposure - here YBS Intermediary Use Only
CONTENTS Introductions & Overview YBS Commercial Mortgages is a relationship led lender, with a focus on a dedicated personal service. Backed by the Yorkshire Building Society, we are a strong and stable lending partner, helping you deliver your clients long-term mortgage solutions Mike Davies, Head of Business Development Landlord Experience Maximum Customer Exposures Our Products BTL & Holiday Let HMOs Semi-Commercial Commercial Our Processes Documents Required Additional Contact Information 2
Introductions & overview Gaynor Morgan Relationship Director GMorgan@ybs.co.uk, 07752 744 781 Luke Douse Business Development Director LDouse@ybs.co.uk, 07860 187 793 Natalie Mackle Relationship Director NMackle@ybs.co.uk, 07712 425363 Mike Davies Head of Business Development MDavies@ybs.co.uk, 07926 080 859 Steve Pike Regional Director South East SPike@ybs.co.uk, 07808 017 137 Your firm s primary contact(s) are shown in green. However, our Business Development Team above will provide regular support and updates throughout the year. Since relaunching as YBS Commercial Mortgages we have: Expanded our UK presence opening offices in Midlands, North, Wales & South West in addition to our London & South East offices Developed our exclusive panel by recruiting a collection of strong broker partnerships Expanded our product range to include fixed rates for HMOs, Semi-Commercial & Holiday Let investments Remained open for business, lending for BTL and Commercial mortgages throughout the pandemic Achieved record results for Enquiries, Applications, Sanctions and Completions 3
Maximum customer exposure (by product) Corporate BTL / Large Personal BTL / Holiday Lets Semi-Commercial / Commercial Investment Commercial Owner-Occupier HMOs Borrower Status Combined New YBS Commercial Mortgages Customer 15m 10m 10m 15m 5m Existing YBS Commercial Mortgages Customer (<3 Years Track Record) 15m 10m 10m 15m 5m Existing YBS Commercial Mortgages Customer (3+ Years Track Record) 20m 20m 15m 20m 5m NB: Maximum LTV of 65% on lending which takes new or recent customer exposure above 5m. 5
Buy to Let Range Serviceability Assessment (Lower of Market / Passing Rent) Proc. Fee (Paid by YBS) Max. Loan (Per Unit) Reversion Rate Borrower Type1 Max LTV2 Fixed Term Loan Term Pay Rate Arr. Fee Min. Loan ERCs Corporate BTL 65% 3.40% 5 Year 5%, 4%, 3%, 3%, 2% 1m / 1.5m in London & South East 75% 3.55% Limited Company / LLP Up to 25 years3 125% ICR at higher of 4% and Pay Rate +0.75% 1.50% 0.75% 500k SVR 5%, 5%, 5%, 5%, 4%, 4%. 3%, 3%, 2.5%, 1.5% 75% 10 Year 3.85% Large Personal BTL 65% 3.40% 1.5m & 6+ Properties or 3m 5 Year 5%, 4%, 3%, 3%, 2% 1m / 1.5m in London & South East Personal Name (Up to 4 Applicants) 75% 3.55% Up to 25 years3 145% ICR at higher of 4.5% and Pay Rate +1% 1.50% 0.75% SVR 5%, 5%, 5%, 5%, 4%, 4%. 3%, 3%, 2.5%, 1.5% 75% 10 Year 3.85% Holiday Let Net Income4 to provide 125% ICR at higher of 5% & Pay Rate+1% Up to 25 years3 Limited Company 75% 5 Year 3.85% 1.50% 0.75% 400k 1m SVR 5%, 4%, 3%, 3%, 2% 1 All Borrowers must comprise 100% UK based ownership 2 65% LTV cap across all products for New Build flats and where lending takes new/recent customer exposure above 5m 3 Maximum 10 year commitment for loans 2m+ 4 Net Income = Gross Holiday Let Income, less actual letting agent costs, less business rates (if payable) 6
OUR PRODUCTS: SEMI-Commercial Serviceability Assessment (Lower of Market / Passing Rent) Borrower Type1 Max LTV2 Product Type Loan Term Proc. Fee Max. Loan (per property) Asset Type Pay Rate Arr. Fee Min. Loan Repayment Type ERCs Semi-Commercial 5 Year Fixed Rate 5%, 4%, 3%, 3%, 2% 4.35%4 70% Interest Only5 Semi-Comm with 50%+ capital value from residential element 500k 5m Reverts to C&I Repayment 10 Year Fixed Rate 5%, 5%, 5%, 5%, 4%, 4%. 3%, 3%, 2.5%, 1.5% 4.80%4 65% Rent to provide 125% ICR at Pay Rate +1.5% & Rent to provide 100% Debt Service at higher of 7.25% / Pay Rate +3.25% Individual Partnership Limited Company LLP Up to 25 years3 1.50% 1.00% Semi-Comm with less than 75% rent from residential element 65% 3m C&I Repayment (standard) Part & Part (refer) Interest Only5 (refer) Term Tracker Bespoke 500k 3%, 3%, 3%, 1% Semi-Comm with 75%+ rent from residential element 75% 5m 4 Reverts to Standard Variable Rate 1 All Borrowers must comprise 100% UK based ownership & have 2+ years UK commercial letting experience 5 Interest Only up to max. 10 years 2 LTVs are subject to sector specific criteria 8 3 Maximum 10 year commitment for loans 2m+
OUR PRODUCTS: Commercial Affordability Assessment (Lower of Market / Passing Rent) Borrower Type1 Max LTV2 Product Type Loan Term Proc. Fee Max. Loan (per property) Asset Type Pay Rate Arr. Fee Min. Loan Repayment Type ERCs Commercial Investment Offices, Professional Practices, Essential Retail, Children s Day- Nurseries, Caf s/Coffee Shops, Take-a-ways, Motor Vehicle Maintenance C&I Repayment (standard) Part & Part (refer) Interest Only5 (refer) 3m 65% Individual Partnership Limited Company LLP SIPP / SSAS Rent to provide 100% Debt Service at higher of 7.25% / Pay Rate +3.25% Term Tracker Up to 25 years3 3%, 3%, 3%, 1% Bespoke 1.50% 1.00% 500k C&I Repayment (standard) Part & Part (refer) Interest Only (refer) Industrial including: warehousing /storage, logistics/transport, manufacturing, data centres 5m 75% Commercial Owner Occupier Individual Partnership Limited Company LLP SIPP / SSAS Industrial (as above), Offices, Professional Practices, Retail, Children s Day-Nurseries, Caf s/Coffee Shops, Take-a-ways, Motor Vehicle Maintenance, C&I Repayment (standard) Part & Part (refer) Interest Only5 (refer) Rent to provide 100% Debt Service at higher of 7.25% / Pay Rate +3.25% Term Tracker Up to 25 years3 3%, 3%, 3%, 1% 65% Bespoke 1.50% 1.00% 500k 2m 4 Reverts to Standard Variable Rate 1 All Borrowers must comprise 100% UK based ownership & have 2+ years UK commercial letting experience 5 Interest Only up to max. 5 years and not available for pure retail or office assets 2 LTVs are subject to sector specific criteria 9 3 Maximum 10 year commitment for loans 2m+
Our processes 1. Email any enquiries to your primary contact(s). If you re unsure it s one for us feel free to call them to chat through first. We ll come back to you with an indication of terms or a quick no [typically 24-72 hours]. Submit completed signed applications, along with supporting information and documentation to your primary contact(s) [see next slide for breakdown of required documentation] Once a full submission is received, we ll undertake our review to ensure the application is a viable proposition for us. Once qualified, we ll come back to you with a Decision in Principle Letter confirming the detailed terms we hope to achieve before progressing the loan. New Enquiry 2. 1. 2. 3. Application 1. We meet with all of our Borrower s (by phone/video call) to further our understanding of their background and experience to strengthen our submissions to our Credit team. This is also an opportunity for us to provide more information about YBS Commercial Mortgages and answer any questions they may have on the loan terms and it s lifecycle. You re welcome to attend. Meeting 1. Once your client pays the valuation fee, we ll instruct a Valuer to inspect please ensure the best contact for access has been provided. Once returned, we ll assess the valuation report and share feedback on the findings and discuss any impact on our assessment. We submit two reports to achieve loan approval: one Customer Due Diligence Report which covers KYC and AML requirements and the second a Credit Report in which we discuss our support for the proposed transaction with a view to it s risk / merits. We ll come back to you to cover off any final queries and to confirm when the loan has been approved. A copy of the Offer Letter is issued to the Borrower, the solicitors and to you as the introducing broker and you ll be contacted by a member of our Completions Team who ll be your primary contact at this stage of the loan. Once all conditions are satisfied, we ll arrange for completion of the Loan. Your procuration fee will ordinarily be paid by BACS within 10 working days of completion. Valuation 2. 1. Customer Due Diligence & Credit 2. 1. Offer, Legals & Completion 2. 3.
Documents required at application YBS Commercial Mortgages Application Form (fully complete, signed & dated) YBS Commercial Mortgages Direct Debit Form Last three years SA302s or HMRC Tax Calculations & Overviews Last six months business & personal bank statements Latest three years full business accounts for Borrower & associated business Copy of tenancies for proposed security properties Evidence of source of deposit contribution Existing mortgage statement(s) (Refinances) Statement of Wealth (inc. Source of Deposit) 11
YBS Commercial Mortgages South East Andrew Edwards Relationship Director AEdwards@ybs.co.uk 07860 187 786 Andrea Cotton Relationship Director ACotton@ybs.co.uk 07752 744 781 Steve Pike Regional Director SPike@ybs.co.uk 07808 017 137 Address Due to remote working, please contact us where you have a need to issue postal correspondence. Matt Barlow Relationship Director MBarlow@ybs.co.uk 07926 080 004 Gaynor Morgan Relationship Director GMorgan@ybs.co.uk 07513 482 918 Gavin Bosse Relationship Director GBosse@ybs.co.uk 07734 979 206 YBS Commercial Mortgages Yorkshire Building Society Broadoak, Southgate Park Bakewell Road Peterborough PE2 6YS Natalie Mackle Relationship Director NMackle@ybs.co.uk 07712 425 363 Matt Buck Relationship Director MBuck@ybs.co.uk 07557 268 497 Lisa Mills Lending Support Advisor LiMills@ybs.co.uk Kate Parke Lending Support Advisor KParke@ybs.co.uk Christian Gooderson Lending Support Advisor CGooderson@ybs.co.uk Page 12
