Changes aim to support landlords by providing them more options
Shawbrook Bank has expanded its product offerings for multi-unit freehold blocks (MUFBs), now allowing first-time landlords to seek MUFBs up to six units.
The move broadens the lender’s range of lending products, supporting new market entrants in building property portfolios, including buy-to-let, houses in multiple occupation (HMO), and MUFB properties.
Shawbrook has also enhanced its commercial lending by increasing the maximum loan-to-value (LTV) ratio to 75% for industrial properties. These loans are available on interest-only, part-capital, or full capital repayment terms, with rates starting from 7.39% at 75% LTV.
This change, the specialist lending bank said, aims to help landlords diversify their portfolios with commercial properties.
Recognising the growing demand for social housing in the UK, Shawbrook has also improved its lending options for properties let to social housing or supported living operators. The lender’s Complex Buy-to-Let products now cater to single-let or HMO properties in this sector.
Lastly, Shawbrook has introduced new criteria supporting landlords who wish to acquire shares of a property-owning company instead of individual properties, with no minimum loan size required.
“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,” said Daryl Norkett (pictured), head of proposition at Shawbrook.
“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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