InterBay and Together Reduce Commercial and Bridging Rates

InterBay Cuts Commercial Rates

InterBay has announced significant reductions in rates for its commercial investment and semi-commercial limited-edition products. The lender has lowered the rates on its two-year fixed products by 0.5% and its five-year fixed products by 0.2%. Marc Callaghan, head of commercial lending at InterBay, emphasized that these adjustments reflect their commitment to supporting brokers and clients in a rapidly evolving market. By reducing rates by up to 50 basis points across limited-edition products, InterBay aims to facilitate smoother deal structuring and enhance outcomes for investors.

Together Lowers Bridging Rates

In a similar move, Together has reduced rates across its unregulated bridging products by 0.05%. This adjustment is designed to improve affordability for borrowers at higher loan-to-value (LTV) tiers. The unregulated bridging products are available for loans ranging from £26,000 to £5 million, providing dual solicitor representation on qualifying cases and offering 100% funding, subject to additional checks. The starting rates for first charge unregulated residential bridging are now at 0.9%, while semi-commercial and commercial properties are at 1.04% and 1.08%, respectively. For second charge unregulated residential bridging, rates start from 1.08%, with semi-commercial and commercial rates at 1.06% and 1.1% respectively.

Practical Impact on Borrowers

The recent rate cuts from InterBay and Together are likely to have a positive impact on borrowers looking for commercial and bridging finance. For instance, a property investor considering a £500,000 semi-commercial property could see significant savings on their mortgage payments due to these reduced rates. With the UK base rate currently at 3.75%, these lower rates can enhance cash flow and make property investments more attractive. The focus on affordability and flexible lending options is crucial for brokers, investors, and landlords navigating today’s lending landscape.

Market Context

These rate reductions come at a time when the UK property market is experiencing fluctuations influenced by economic factors such as inflation and interest rates. The Bank of England’s base rate, currently at 3.75%, has been a critical consideration for lenders and borrowers alike. As lenders like InterBay and Together adapt their rates, they are responding to both market pressures and the need to remain competitive. This adaptability is essential for attracting investors who are keen on capitalising on opportunities in the commercial and bridging sectors.