YBS Commercial completes first SME deal

YBS Commercial Mortgages has completed its first mortgage designed to support owners of small and medium-sized businesses (SMEs).

The deal involved an offering of five separate loans, including one for a 30-year-old family-run-and-owned timber and builder’s merchants, located in Hertfordshire. The finance package also featured a commercial investment element and three buy-to let refinances to cover the family’s property portfolio.

The loan totalled more than £13 million overall – of which £1.6 million was provided by the new SME product. The rest was covered by the lender’s established commercial investment and portfolio landlord offerings.

YBS Commercial launched its new owner-occupied SME offering in May, in response to broker feedback. The product - which has been specifically tailor-made for this sector - is aimed at those who occupy their property for business purposes and will repay the mortgage from the income it provides. It currently offers a rate of 6.69% fixed for five years.

Gary Pratt, relationship director at YBS Commercial Mortgages, who managed the deal through to completion, said: “I’m delighted to have secured this first SME deal and we’re confident more will follow. The launch of our new SME proposition marks a real milestone for us, and enables us to bring much-needed support to the small businesses which contribute so much to the communities in which they operate and the UK economy overall.

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

Nick Cooper, director at Sandhill Homes, the business-owner who benefited, commented: “The deal worked really well for us, and has helped us to achieve our ambitions - refinancing our existing properties and funding the building of a new housing development. This will allow us to build 10 new homes, as well as employing at least 30 people.”

Laurie Baugh, managing director of Approved Finance Group, which brokered the deal, added: “We’re excited to be first over the line on the new owner-occupied mortgage, offering the best combination of products to suit the borrower’s specific requirements, as well as the best value, and I’d like to thank the team at YBS Commercial for the proficient way they handled the transaction from start to finish.

“The end result is that this established family business is able to proceed with its ambitious development plans - which will serve the local area once complete - as well as ensuring that they have liquidity in the business for their ongoing operations.”