InterBay Commercial has returned to lending.

This follows its recent acquisition by OneSavings Bank plc.

It has launched a new range of products aimed at the small balance commercial market.

The products will initially be:

• £75,000 to £1,000,000
• Larger loans by exception to £5,000,000
• Maximum LTV 75%
• Good credit history
• Margins starting from 4.95% over 3 month LIBOR

“It’s fantastic to be back lending and launch products to a market which we feel has been underserved and needs competition and quality service,” said Colin Bell, CEO of InterBay Commercial. “It sends out a positive message that there is a need for commercial lending and things are looking up in the mortgage market.

“We had a reputation for offering our partners experience, service and flexibility and this will continue, providing tailored underwriting wherever possible. Feedback from key partners tells us this will be very welcome as lack of flexibility and liquidity has been a barrier in recent times. Our products will be offered through a panel of key partners through the UK, many of whom we have worked with and kept in contact over the years.”

Bell added: “We will give our Key Partners quick fully credit underwritten decisions up front, decisions we will stand behind. This unique proposition ensures the Key Partners can talk with confidence to their Brokers about the commercial loan they are proposing.

“Our pricing is keen and InterBay is here to provide crucial loans to the SME market which is still crying out for liquidity and a listening ear.”

Andy Golding, CEO of OneSavings Bank plcm added: “We are delighted to now have Interbay as part of the group and are very excited about getting them back up and running with new lending. We are committed to providing a range of financial solutions despite the difficult economic environment and helping small businesses through the Interbay brand is a key part of our long term strategy.”

Kit Thompson, director of Brightstar Financial’s bridging and commercial business, said: “After four years of unremitting bad news on the lending front, we have seen the commercial market begin to come to life this year with the likes of Shawbrook and radical peer to peer lenders such as Funding Circle providing new competition to the established big commercial players. InterBay’s new offering comes at a time when the upward trend in commercial lending needed another push in the right direction.

“From our first look at their criteria it is clear that InterBay is keen to engage commercial specialists and brokers. This brings more choice and everyone wins and for some of the bigger players who have had something of a monopoly in commercial lending, it might serve as a timely reminder for them to look at reviewing their underwriting, criteria and overall attitude to small and medium business lending.”