The Yorkshire Building Society unit has reduced rates on its five-year fixed-rate semi-commercial product, designed specifically for part-residential, part-commercial assets which are rented out as investments.  

It says the rate on these loans have come down to 6.45%, from 6.55%, on offers of up to £20m, at up to 70% loan-to-value.  

The lender also makes changes to its buy-to-let range, introducing a new tiered pricing structure according to the loan amount, with no changes for deals valued over £1m.   

However, for loans valued at £1m or below, the firm has added 20 basis points to both the 65% and 75% LTV products, meaning new rates of 5.50% at 65% LTV, and 5.70% at 75% LTV, on loans of up to £20m.  

The unit says there are no changes to the new commercial investment product, launched last month, for loans on retail, office, industrial, warehousing, quality leisure facilities and other kinds of commercial property, at 6.99% up to 75% LTV on a capital and interest repayment basis, or 7.15% to 65% LTV on an interest-only basis.  

YBS Commercial Mortgages managing director Tom Simpson says: “This change will enable us to stay competitive in this space, maintaining a good product mix and supporting local business investors who rely on diversified income streams.  

“The BTL changes mean that for portfolio landlords looking to borrow larger amounts, we’re holding rates in what is currently a difficult market environment.  

“For smaller loans, while needing to reflect current market conditions — which include increased mortgage funding costs — we’ve kept the rate increase to the absolute minimum to ensure we continue to provide clients with the value they expect from us as a commercial lender.”