Specialist commercial lender and part of OSB Group, InterBay, has announced that it has updated six core criteria for commercial and semi-commercial lending following extensive consultation with brokers. The changes are designed to broaden eligibility, accelerate decisions, and address practical challenges faced by intermediaries and landlords.
Market value lending enables larger loans
The lender will now lend up to 75% of market value rather than the lower of market value and vacant possession value. Loans must not exceed 85% of vacant possession value, and a valuer must confirm a maximum 12-month letting and sale period.
The valuer’s opinion of market rent will now be used instead of passing rent, allowing larger loans on income-producing assets.
Mixed-use properties attract lower pricing
Semi-commercial properties with a residential split above 50% (previously 55%) will now qualify for lower semi-commercial pricing. This adjustment makes borderline mixed-use cases more financially attractive for investors.
Shorter leases and lease term limits eased
Where a property is income-producing at origination, and this can be verified, minimum lease period requirements have been removed.
Additionally, the previous requirement for a 60-month remaining lease at loan expiry has been lifted, giving operators greater flexibility on complex or transitional assets.
Vacant units and multi-unit assets now eligible
Properties with vacant units can now be considered, provided sufficient rent covers the empty spaces. Non-structural works to enhance property condition are also welcomed, expanding opportunities for landlords of multi-unit buildings.
First-time landlords face fewer restrictions
The requirement for two years of sector experience for first-time commercial landlords has been removed, easing access to funding for new investors.
“These criteria changes are a direct result of listening closely to our broker partners and understanding the real-world challenges they face when placing commercial and semi-commercial cases,” said Marc Callaghan, head of commercial lending (pictured).
“Ultimately, these changes mean faster decisions, broader eligibility and more opportunities to place complex deals with confidence. We’re committed to evolving our proposition in step with broker feedback, and today’s updates are another crucial step in strengthening the way we do business together,” he added.
Broker response highlights the impact
“This is a strong move that reinforces InterBay’s role as a key partner in the commercial lending space. These enhancements show InterBay is serious about supporting brokers and their clients during more challenging times,” said Lucy Waters, managing director at Aria Finance.
“The move to market value lending and the easing of lease restrictions will unlock opportunities that simply weren’t viable before. It’s refreshing to see a lender act directly on broker feedback and make changes that will have a real, positive impact for our clients. It’s exactly the kind of pragmatic, solutions-led approach we need from all lenders right now.”
What this means for the market
The updates are expected to increase deal flow and improve accessibility for landlords and brokers. Larger loans, relaxed lease restrictions, and more flexible eligibility criteria should enable operators to fund a wider range of commercial and semi-commercial properties across the UK, while helping brokers place complex transactions more efficiently.
