It lifts loan-to-value cap as investor confidence in commercial property steadies
Specialist lending bank Shawbrook has increased the maximum loan-to-value (LTV) ratio on office properties to 75%, marking a further update to its commercial mortgage offering.
The move comes amid signs of steady investor interest in commercial real estate, particularly in office spaces. Recent data suggests a stabilisation in both capital values and yields for well-located office assets.
According to Rightmove’s latest Commercial Insights Tracker, demand for office leasing has risen by 19% compared to the previous year. Figures from the Royal Institution of Chartered Surveyors (RICS) show a more modest demand growth in the first quarter of 2025 — 6% for offices and 9% for industrial units.
Shawbrook has gradually revised its commercial lending criteria throughout 2024. The new LTV ceiling for offices aligns with earlier changes to its industrial and retail mortgage ranges, as the lender adapts to shifting market conditions and investor sentiment. In February, the specialist lender introduced a new lower limit loan size of £150,000 for its commercial and semi-commercial mortgage products.
Shawbrook said the latest adjustment is designed to support professional landlords exploring growth opportunities in a more stable and resilient office market.
“Increasing our maximum LTVs for the office sector to 75% is another way that we’re evolving our proposition in response to ever-changing market dynamics,” said Daryl Norkett (pictured), director of real estate proposition at Shawbrook. “Throughout 2024, we saw growing investor confidence in commercial property—particularly in offices that are well-positioned and future-fit.
“This move not only reflects the increased stability we’re seeing in the office sector but also underlines our ongoing support for professional investors seeking to diversify and grow with the market opportunities.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
