"We recognise that different types of commercial property assets require different levels of management experience; there is no one-size fits all."
YBS Commercial Mortgages has updated its lending policy to give its underwriters more flexibility when considering commercial investments, in a move that aims to support more investors.
The commercial lending arm of Yorkshire Building Society will now consider two years’ understanding of commercial investments, as an amendment to its standard policy of a minimum of two years’ experience of managing commercial property.
YBS Commercial says it is improving its support to the commercial sector by giving underwriters discretion, where it makes sense to do so and based on supplied evidence from brokers and borrowers, to progress applications that don’t always have two-years’ experience.
Applications will be considered on a case-by-case basis, but the lender says it recognises that ownership of properties in isolation does not always translate into capably managing commercial assets.
Mike Davies, head of business development at YBS Commercial Mortgages, said: “While it remains absolutely critical that we only lend to borrowers with the right experience, knowledge and skills, we recognise that different types of commercial property assets require different levels of management experience; there is no one-size fits all.
“This change gives our underwriters the discretion to progress good quality applications where it makes sense to responsibly do so. For example, a property such as a convenience store with a long-lease may require no hands-on management, but a multi-let office block with short leases will be much more management heavy. It’s important that we acknowledge this.
“By considering a balance of experience, knowledge and skills - underpinned by our responsible lending principles - we’re building on our promise to be a long-term, stable lending partner that provides a personal and dedicated service to our customers. This is just another example of how we continue to make improvements to further support those in the commercial market.”