YBS Commercial announces Covid-19 criteria changes

YBS Commercial Mortgages is adjusting its valuation methods, increasing funding limits for existing customers and changing its LTV ratios.

Following the government’s announcement on restricting movement to support social distancing and help prevent the spread of Covid-19, valuers are currently unable to visit properties and carry out physical property valuations.

Some YBS Commercial Mortgages buy-to-let transactions will be agreed using a desktop valuation. In other cases YBS Commercial Mortgages will seek to use desktop valuations to allow cases to progress, although formal offers will need to wait for a physical valuation to be completed.

To provide additional support to businesses through this time YBS Commercial Mortgages has increased its funding limits. YBS Commercial Mortgages can now lend up to £20 million to existing customers.

The maximum LTV on owner occupied and commercial investment mortgages will be 65% and for corporate buy-to-let mortgages 70%.

Tom Simpson, managing director of commercial lending, said: “YBS Commercial Mortgages has always taken a long term approach to our lending. We see ourselves as a strong, long term partner for our customers and broker panel members. The changes that we have announced will allow us to continue proactively supporting our important partners as well as lending responsibly while the market is being affected by Covid-19.

“The current downturn is unparalleled in terms of its root cause. It is challenging for anyone to predict the duration and impact of Covid-19 on the economy and property market. Our aim is to provide certainty to our customers and broker panel now and to prepare for when the market returns to normality. Each of our customers will be treated as an individual and we will make decisions based on their own current circumstances.

“We are already assisting our existing customers with payment holidays to help manage their cash flow where they have been financially affected by coronavirus. We have implemented an online form to speed up the repayment holiday process and we will continue to innovate to support our customers. For new borrowers in current market conditions the changes we have made will support some new lending. Each new mortgage application will still be reviewed by our dedicated lending team on a deal by deal basis.”