YBS Commercial Mortgages has updated its range for multi-unit freehold blocks (MUFBs), introducing a new three-year tracker product to give landlords more options in the current market. A MUFB is a building containing two or more separate residential or commercial units, such as flats or shops, where the building and land are held under a single freehold title.
The new MUFB mortgages product is available for blocks with seven or more units at a variable rate of 4.99%, made up of a 1.24% margin over the Bank of England base rate, currently 3.75%.
It can be accessed on a capital-and-interest or interest-only basis, on loans up to 75% LTV, with a 2% arrangement fee. The product takes effect from 22 July.
"Developed in direct response to broker and customer feedback, we're delighted to introduce a new tracker option for landlords with MUFBs, to complement our existing fixed-rate offering," said Angela Norman, managing director of YBS Commercial Mortgages.
"This product reflects the realities of today's market, where economic uncertainty and fluctuating interest rate expectations are influencing borrower decisions, with landlords seeking the option of greater flexibility rather than committing to a fixed rate for an extended period," she added.
"By introducing this tracker product we're providing landlords with more choice, and the ability to better respond to changing market conditions, as well as strengthening our competitive position in this space, reinforcing our commitment to delivering solutions that meet their evolving needs."
