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The Funding Fred lender guide

YBS Commercial Mortgages review

Yorkshire Building Society offers owner-occupied commercial mortgages for businesses buying or refinancing premises they trade from. This guide covers eligibility, security requirements and costs based on published product information, not a tested application or customer feedback.

By Funding Fred · Sources checked 19 September 2026

This is an information page. A Funding Fred enquiry for this product is not available here; check the provider’s official information for current options.

Potential fit

Who could consider YBS Commercial Mortgages?

  • Limited companies, LLPs and partnerships buying or refinancing a trading premises they occupy themselves.
  • Businesses registered in England or Wales, where directors and shareholders are UK residents.
  • Firms able to offer a first legal charge over the property alongside a director personal guarantee, where availability is confirmed by a written quote rather than assumed.

Worth weighing up

When to consider other options

  • The property is bought purely for investment or letting rather than occupation, YBS notes separate investment property products carry different criteria.
  • Speed is the priority and a decision is needed within days; commercial mortgage underwriting, valuation and legal work typically take weeks.
  • The business cannot offer a first legal charge or a director personal guarantee, since both appear to sit at the core of YBS's security requirements.

Understand the offer

Costs and repayments

YBS publishes product-specific pricing and criteria; the applicable rate depends on the loan and whether the mortgage is fixed or variable. Anyone comparing this YBS owner-occupied commercial mortgage review against other lenders should request a personalised quote before assuming any figure applies to their circumstances.

Beyond the interest rate, commercial mortgages generally carry arrangement fees, valuation costs and legal fees, though YBS's exact fee schedule for this product isn't detailed in the published summary reviewed here. Borrowers should ask for a full breakdown in writing, covering both one-off costs and ongoing repayment structure, before treating any online estimate as final.

Repayment terms and structure, whether capital and interest or another arrangement, will be confirmed at offer stage. Because fixed and variable structures carry different terms and limits, this guide deliberately avoids quoting blanket amounts; the only reliable source is a formal offer document from YBS itself.

Eligibility and application

Baseline eligibility, as far as published information confirms, requires the borrowing entity to be a limited company, LLP or partnership registered in England or Wales, with UK-resident directors and shareholders. The property must be one the business occupies itself, not one held purely for rental income. YBS states there's no requirement to move existing business banking to access this product, which may suit firms with established banking relationships elsewhere.

Confirm the application route with Yorkshire Building Society's commercial team or a commercial mortgage broker. Security is expected in the form of a first legal charge over the property, together with a director personal guarantee, meeting these baseline criteria is not the same as approval, which depends on full underwriting, valuation and affordability checks specific to each application.

Advantages to weigh up

  • No requirement to switch business banking relationships to use the product.
  • Available across common business structures, limited companies, LLPs and partnerships, rather than sole traders alone.
  • Backed by a long-established UK building society with a dedicated commercial lending arm.

Limitations to understand

  • A director personal guarantee and first legal charge appear to be standard security requirements, representing a material personal obligation beyond the business itself.
  • Published pricing, fees and loan-to-value limits vary by product structure; confirm the figures applicable to the proposed mortgage.
  • The product is scoped to owner-occupied premises only; investment property purchases fall under a separate YBS product with different criteria.

Look at the wider picture

Comparing the alternatives

Because published information doesn't cover every fee and rate scenario, the only reliable comparison method is requesting written quotes from more than one lender and comparing them line by line, arrangement fees, valuation costs, legal fees, rate type and security terms all matter as much as the headline figure. Businesses weighing owner-occupied purchase finance against other funding structures may find it useful to read about development finance versus a commercial mortgage before deciding which structure fits a property purchase or refinance.

Commercial mortgages are one route among several for financing a business asset. Businesses exploring options beyond property-secured lending can review general information on secured business loans in the UK or broader business loan structures. This page is provided for information purposes only; Funding Fred does not currently offer a matched enquiry route for this specific YBS product, so applicants should confirm a suitable application route with YBS or a commercial mortgage broker.

Santander

commercial mortgages

Eligibility: UK business turnover above £250,000.

Read review

Barclays

commercial mortgages

Security: Mortgage secured against property.

Read review

TSB

commercial mortgages

Minimum: £25,001.

Read review

Product features checked against each provider’s UK website. These are comparison pointers, not a price ranking or a promise of eligibility.

A little more clarity

Your YBS Commercial Mortgages questions, answered

Costs, eligibility and the details to check before applying.

Published information indicates a director personal guarantee is required alongside a first legal charge over the property, representing a personal obligation beyond the business entity itself.

How we put this guide together

This is a review of published UK product information, not a customer experience or a hands-on test. We have not assigned a star rating. This guide focuses on YBS Commercial Mortgages — owner-occupied commercial mortgages. Other products may have different terms.

Sources checked 19 September 2026. Your written offer determines your actual costs and conditions.

More funding guides

Check the provider’s current terms.

Use the official information to confirm product availability, eligibility and terms.

This page does not offer an application for this product through Funding Fred.

View official information

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YBS Commercial Mortgages review: Costs & Eligibility