Record year for commercial lender amidst tough market

YBS Commercial Mortgages increased the amount of money borrowed by commercial and professional landlords by 50% in 2022 – to £0.6bn, compared to 0.3bn the previous year.

The 2022 figure signifies an increase in the value of the entire YBS Commercial Mortgages customer base to more than £1.5bn, and a record in new lending for the commercial lending arm of Yorkshire Building Society.

It comes at a time when demand for private rented housing is soaring, but the landlords who provide it are facing significant challenges in terms of funding availability, affordability, and a raft of new regulations affecting everything from how they are taxed, to how energy-efficient their properties are.

The support provided by the commercial lender to the private rental sector amounted to £413.2m in 2022.

Support for other key sectors include investment in industrial property, retail property and the leisure industry, with a total of £115.7m provided across commercial investment lending in 2022.

The provider has also revealed the regional breakdown of lending activity, with £260.9m handled by the London and the South-East team, and £127.6m by the Midlands team.

The Wales and the South-West team managed £77.6m to completion, with the North team taking £43.1m.

YBS Commercial has attributed its success over the last 12 months to propositional and pipeline efficiency improvements, including the launch of a portal to allow brokers better control and visibility around the applications they’ve submitted; criteria changes to ensure products are as accessible as possible, and service enhancements which have reduced processing times.

Tom Simpson, managing director for YBS Commercial Mortgages, said: “2022 was a real turning point for us in terms of realising our ambitions to help more landlords and small businesses to thrive in a challenging market.

“And with 90% of customers and brokers rating our relationship directors as very effective, I’m pleased with the long-term, stable funding we’ve been able to provide to the commercial market to date through our regional hubs, which sit at the heart of our business.

“We have plans to deliver even more this year and beyond, with more than £0.75bn available in funding, allowing us to support more clients who need us.”