InterBay Commercial has cut rates across its commercial and semi-commercial range and implemented a new, simplified pricing structure.

Pay rates will now start from 4.89% for commercial and 4.29% for semi-commercial and feature standardised pricing irrespective of loan size, as well as fewer LTV bands.

Loan pricing will be aligned to asset quality with the introduction of a three-tier rate structure linked to property yield. This replaces the existing prime and standard rate approach.

Yields will be calculated by dividing market rent by market value (based on vacant possession) and, even where a property is high yielding, nearly all rates are lower than now.

Darrell Walker (pictured), head of sales, second charge & commercial at OneSavings Bank, said: “We’ve taken a fresh approach to the pricing of commercial and semi-commercial loans by rewarding a quality asset with pricing based on yield, even if the property is vacant.

“The adoption of this new pricing model and its simplicity reflects broker demand for more appropriate finance for better quality commercial and semi-commercial properties.”