InterBay Commercial
Mortgage Type
Specialist BTL/CommercialProperty Value (min)
Core range:
Commercial /Semi-Commercial / Bridging Finance products:
£200,000
Buy To Let products: -
£1,000,000.
Advance (min)
£100,000 for Semi-Commercial and Commercial units on Select and Core Range
£500,000 for BTL
£250,000 for Brigding
Advance (max)
£1,500,000 to 75%. for single units - £70% LTV for <7 bed HMO/MUFB 80% LTV Maximum on single units and HMO/MUFB's Semi Commercial - 75% LTV Max Commercial unit - 75% LTV Max Exceptions and portfolios considered. Properties over £2,000,000 now considered.
Term (Max)
30 yearsMinimum Age
20 yearsMaximum Age
85 at the end of the mortgage termFamily Cash Gift Deposit
Yes - from a direct relativeFamily Gift of Equity Deposit
Yes - Family members credit needs to be checkedIncome (min)
No Minimum IncomeRestrictions
No restrictions on numbers with other lenders- maximum £15,000,000 (higher exposure can be considered) to a single customer. (InterBay/OneSavings Bank/ Kent Reliance Building Society)Interest only considered on all property types up to a max term of 30 years, Interest only term over 10 years attracts an additional 0.50% loading from 11-30 year terms.
36 month tenancies can now be considered:
• The AST provides for a rent review every 12 months or less
• A minimum Debt Service Coverage ratio of 125%
• A maximum LTV of 75%
HMO’s, student BTL. Multi-unit on 1 title, semi commercial and Commercial. - up to 20 bedrooms/units
70% Max for HMO/MUFB and Semi Commercial
65% LTV max for Commercial.
Commercial: 65% LTV - Acceptable usage
- selected retail (high street and suburban/neighbourhood precinct)
- Offices – 3 stories, single tenant & period/modern buildings
- Light Industrial / Storage / Distribution – post 1980s, max 20,000sqf, single or multi let, self-contained
Semi commercial
- 70% LTV
- £2m value (larger by exception)
- Acceptable usage
- selected retail (high street and suburban/neighbourhood precinct)
- office
- takeaways and restaurants/cafes
- pharmacies
- ICR to primarily be based on the Residential rental income only. The Commercial rental income can be utilised subject to validate that:
- the last 12 months rental payments have been paid, and
- there is at least 12 months unexpired term on the current lease
- No vacant commercial
- Investor and Owner Occupiers allowed
- Sales & Letting marketability of 12 months or less
- Immediate occupation only
- Lease review by solicitors
Background portfolio ICR which must be a minimum of 125% ICR at 5.7% pay rate and a maximum of 85% LTV.
Let to Buy (Turning Residential into Buy to Let)
ConsideredDWP Tenants
Consider DSS/DWP - but case will refer, subject to location and surrounding area.Ex-Local Authority Properties
Consider both houses and flats. Flats are considered providing more than 80% of the block is privately owned/owner occupied.50-79% private/owner occupied would need to be assessed as an exception to criteria. Cannot consider if less than 50% of the flats owner occupied.
Minimum years remaining on leasehold property
65 years remaining at the end of the proposed mortgage termMinimum Ownership
No minimum ownership period before remortgage considered. All cases considered on own meritsPermanent rights to reside and remain
Yes (unless Ex-Pat).Tier 2 Visa - on a case by case basis, Tier 2 Visa’s can be considered on case merit. Subject to product loading.
Ex-Patriates
ConsideredApplicants must be professionals or employed in a senior position by a UK, EU or US agency or by a recognisable or traceable company
Applicants must have an existing residential or BTL property in the UK
Property must be located in London or the South East
Minimum loan size is £125,000
Minimum UK equivalent income of £50,000
Self-employed applicants must be professional, such as an equity partner in a law firm, professional contractor or a business owner with an internationally recognized accountant.
Self-employed applicants who only have a PO Box Address are not acceptable.
Applicants must have at least two years of UK commercial property ownership experience.
Applicants, including Directors and Shareholders of limited companies, must have a UK credit footprint, with a clean credit history for a minimum of three years.
If an applicant resides in Australia or Monaco, the property must be held in a limited company.
Applicants who live in Saudi Arabia, or who work/reside in any country on a banned or watch list, are not acceptable.
Additional requirements may apply depending on the country of residence, and these will be made clear in any offer document.
Mortgage payment must be by Direct Debit, in sterling from a UK bank.
Pricing likely to be 0.25% on margin and potential loading on fee also
Exceptions to this criteria are less likely to be sanctioned in comparison to non expat cases.
New Builds
All new builds considered.HMO (80% LTV)
New Build Flats up to max 75%
Credit Score
NoRental Calculation
BTL/HMO: The required Interest Coverage Ratio (ICR) will depend on the property type and whether or not we are lending to a limited company.
ICR will be calculated using a stressed rate of 5.5%, or the initial pay rate + 1.55%, whichever is higher.
However, the following exceptions apply:
if the case is a remortgage with no additional borrowing, ICR will be calculated using the initial pay rate + 1.05%, with no minimum stress rate.
if the 5 year fixed rate is being used, ICR will be calculated using the initial pay rate, with no additional margin or minimum stress rate.
Standard Property
Single dwellings
HMO/multi/student lets with up to <7 rooms.
Freehold blocks/titles of land with up to 4 residential units.
Personal Applicants
140% rental cover applies
Limited Company
125% rental cover applies
Specialist Property
HMO/multi/student lets with 6 or more rooms
Freehold blocks/titles of land with 5 or more residential units.
Personal Applicants
160% rental cover applies
Limited Company
145% rental cover applies
Semi-Commercial: The Debt Service Cover Ratio (DSCR) is 125% of pay rate
Background portfolio ICR which must be a minimum of 125% ICR at 5.7% pay rate and a maximum of 85% LTV.
Historic CCJ’s & Defaults
Ignored IF - registered more than 3 years ago and satisfied prior to application. Ignored if registered and satisfied prior to 12 months prior to application.Ignored if less than £300 regardless of date of registration. Must be satisfied prior to application.
Valuation Fees
Paid direct to lender at the lender fee scalesMaximum number of applicants
No maximumCountries
Will lend in England and WalesAccess
Access to InterBay commercial is available via selected Key Partners onlyMissed mortgage payments
No Adverse in the last 2 yearsProperty Type / Commercial
Select Range: - Semi-Commercial reduced product rates for properties with more than 55% residential value (DONE ON VALUE NOT UNIT VOL or SIZE)HMO’s, student BTL. Multi-unit on 1 title, semi commercial and Commercial, no maximum bedrooms
75% Max for HMO/MUFB and Semi Commercial
75% LTV max for Commercial.
Holiday lets considered up to 75% LTV on a residential investment basis available for Ltd company also.
Commercial: 75% LTV - Acceptable usage
- selected retail (high street and suburban/neighbourhood precinct)
- Offices – 3 stories, single tenant & period/modern buildings
- Light Industrial / Storage / Distribution – post 1980s, max 20,000sqf, single or multi let, self-contained
Semi commercial
- 75% LTV
- £2m value (larger by exception)
- Acceptable usage
- selected retail (high street and suburban/neighbourhood precinct)
- office
- takeaways and restaurants/cafes
- pharmacies
- ICR to primarily be based on the Residential rental income only. The Commercial rental income can be utilised subject to validate that:
- the last 12 months rental payments have been paid, and
- there is at least 12 months unexpired term on the current lease
- No vacant commercial
- Investor and Owner Occupiers allowed
- Sales & Letting marketability of 12 months or less
- Immediate occupation only
- Lease review by solicitors
Owner Occupied: -
Owner occupier applications accepted where business been trading for 2 years and affordability calculated off adjusted net profit /EBITDA.
Location
Will lend in England and WalesType of Credit Search conducted at AIP stage
Soft foot print onlyPortfolio Landlords
Portfolio Landlords Accepted
Background Portfolio Requirements
– Background portfolio ICR which must be a minimum of 125% ICR at 5.7% pay rate and a maximum of 85% LTV.
Portfolio Landlord Criteria
– No limit on the amount of lending with One Savings Bank
– No limit on the size of existing portfolio with other lenders
Additional Document Requirements
– Portfolio Schedule – All cases
– Business Plan – All cases
– Asset & Liability Statement – All cases
* Lender will accept client versions so long as covers the lenders minimum requirements