Shawbrook Enhances Lending Criteria for Professional Landlords
Shawbrook, the specialist lender, has recently revised its lending criteria to support new and experienced landlords. The lender has broadened its criteria for multi-unit freehold blocks (MUFB), now accepting applications from first-time landlords interested in purchasing MUFBs with up to six units.
Additionally, Shawbrook has improved its commercial offering for industrial properties to help landlords in diversifying their portfolios, now offering loans up to 75% Loan to Value (LTV). These loans are available with various repayment strategies, including capital repayment, interest-only, and part-and-part options. Rates for these loans start at 7.39% for 75% LTV.
Moreover, Shawbrook has increased the loan size for their Refurbishment Bridging products from £500,000 to £1 million, and the Loan to Gross Development Value (LTGDV) has been raised from 65% to 75%.
Targeting small to medium enterprise (SME) landlords, Shawbrook's complex Buy-to-Let (BTL) products are now accessible for single-let and Houses in Multiple Occupation (HMOs). The lender has also reduced rates on complex BTL loans ranging from £1 million to £5 million, with rates starting at 5.44%. This initiative aims to support the increasing demand for social housing.
Commenting on the changes, Daryl Norkett, head of proposition at Shawbrook, said: “These enhancements not only demonstrate our commitment to meeting the evolving needs of professional landlords, but also acknowledge the market’s adaptation to a higher-interest-rate environment. We’ve observed a significant rise in HMO demand, from 27% of our buy-to-let originations in 2022 and 2023, to 34% in 2024. Additionally, our research last year revealed that 37% of landlords seeking portfolio expansion were interested in commercial properties for diversification.
“By expanding our criteria, we are creating more opportunities for landlords to diversify and grow their portfolios, whether through higher-yielding residential assets, commercial properties, or social housing. Our goal is to offer innovative and flexible solutions that support our clients at every stage of their investment journey.”
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The information contained within was correct at the time of publication but is subject to change.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage.
Most Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority.
Source: Shawbrook
