InterBay, the specialist commercial lender within OSB Group, has announced rate reductions of up to 0.50% across parts of its commercial owner-occupier and semi-commercial mortgage ranges.

Rates now start from 5.34% for two-year fixed products within the semi-commercial range, which applies to properties with a residential element of at least 55%. Five-year fixed rates begin at 5.89%, with borrowers able to choose from arrangement fees of 1%, 2% or 4%.

Across InterBay’s commercial owner-occupier range, rates have been cut by 0.20%, with new starting points of 6.39% for two-year fixes and 6.74% for five-year fixes. The lender said it continues to consider a wide range of asset classes, with no maximum loan size or property value.

InterBay said the latest changes reflect both growing demand for commercial property finance and an uptick in investor confidence. The firm pointed to data from Allsop showing year-to-date commercial sales of £270 million, which it said highlights a sector regaining momentum as investors diversify into mixed-use and income-generating properties.

Marc Callaghan, head of commercial lending at InterBay, said: “With demand rising, the commercial market is moving into a stronger position. We’ve been able to move quickly to support our brokers and their clients with tangible benefits which include rate reductions, lower fees and more choice across our standard product ranges.”

Rob Jupp, chief executive of Brightstar, added: “Having seen the Bank of England base rate continue to come down throughout 2025, it’s great to see InterBay passing on these benefits to those investing in the future of high streets and commercial spaces.

“With investors moving in on high street properties, many are adding residential units along with retail spaces to maximise their use, spread the risk of voids and increase revenue.

“Perhaps this is the start of the high street revolution that many towns and cities have long been hoping for.”