YBS Commercial Mortgages has recently launched a tracker mortgage product specifically tailored for portfolio landlords. This launch comes hand-in-hand with significant rate reductions across its extensive range of mortgage offerings.

YBS Commercial Mortgages is offering a fresh tracker product that comes with a variable interest rate of 6.75%, which equates to the Bank of England Base Rate (BBR) plus an additional 1.50%. This rate is applicable over a three-year term, providing landlords with an alternative to fixed-rate products amidst current financial uncertainties.

Landlords have the flexibility to choose between repaying on a capital-and-interest basis or opting for an interest-only payment plan. This flexibility is crucial for managing cash flow and investment returns in a sector where income can fluctuate.

Significantly, this new product is designed to cater to substantial financing needs, as it is available for loan amounts up to £20 million with a maximum loan-to-value (LTV) ratio of 75%. It also involves a 2% arrangement fee, which is a standard cost in the commercial mortgage landscape.

Tom Simpson, the managing director of YBS Commercial Mortgages, emphasised that this innovative product was developed as a direct response to feedback from brokers. He highlighted that the current volatile economic climate and the uncertainty surrounding future interest rates have led many borrowers to seek alternatives to fixed-rate options.

Simpson noted, “This product bridges that gap, offering better choice and flexibility.” He also hinted that with many experts predicting a potential drop in the Bank Rate for the first time in over four years this upcoming summer, the timing for such a product could not be better.

Broader Rate Reductions

Adding to the introduction of the new tracker mortgage, YBS has also made cuts across its other mortgage products. This includes a reduction of 0.20% on selected products within its core Buy to Let (BTL) range. These reductions extend to specialised mortgages for holiday lets and Houses in Multiple Occupation (HMOs), as well as semi-commercial properties that serve dual residential and commercial purposes.

Among the standout adjustments are:

• A five-year fixed rate at 4.90% (previously 5.10%) for BTL clients seeking loans above £1 million, up to a 65% LTV with a 3% fee.
• A reduced rate of 5.55% (down from 5.75%) on a five-year fixed term for holiday lets up to 75% LTV, carrying a 2% fee.
• For semi-commercial assets, a five-year fixed mortgage is now offered at 6.60% (down from 6.80%), up to 70% LTV with a 3% fee.