Specialist lender InterBay has reduced rates across its commercial and semi-commercial mortgage range.

Pricing has also been simplified through the introduction of a three-tier rate structure linked to property yield, replacing the existing prime and standard rate approach, with pay rates now starting from 4.89% for commercial and 4.29% for semi-commercial and feature standardised pricing irrespective of loan size, as well as fewer loan-to-value bands.  

Yields will be calculated by dividing market rent by market value based on vacant possession and, even where a property is high yielding, nearly all rates are lower than now.

Darrell Walker, head of sales for second charge and commercial at OneSavings Bank, InterBay’s parent company, said: “We’ve taken a fresh approach to the pricing of commercial and semi-commercial loans by rewarding a quality asset with pricing based on yield, even if the property is vacant.

“The adoption of this new pricing model and its simplicity reflects broker demand for more appropriate finance for better quality commercial and semi-commercial properties.”