Move is in response to rising demand seen for investments in commercial property
Shawbrook Bank has announced key changes to its core commercial mortgage proposition as part of its plans to expand its range of solutions for clients looking for targeted financial solutions.
The bank said the move was in response to the changing market conditions over the past 12 months, having observed an increased demand for investment in commercial property. To deliver complex funding solutions, Shawbrook made enhancements to its commercial and non-commercial mortgage products to cater for specialised commercial investors and landlords seeking to diversify their portfolios.
“Shawbrook is committed to staying at the forefront of the real estate market, and we have been tracking the commercial property market closely,” said Daryl Norkett (pictured), head of real estate proposition at Shawbrook. “Having monitored the market and our own deal flow over the past few months, we are making changes to respond to growing demand from professional investors and landlords for commercial property.
“Our seasoned team of property specialists, supported by our expert broker partners, enable Shawbrook to adeptly navigate the complexities of a wide range of real estate financing. These latest enhancements helps to extend even more support to property professionals, whether that be a seasoned commercial property investor or a Buy-to-Let landlord looking to expand.”
Some of the key changes included the following:
- Reducing the minimum loan size to £250,000
- Reduction of rates across the offering by 10bps
- Increasing the maximum LTV by 5% on semi-commercial products and commercial products
- Re-introducing retail assets as acceptable security
- Relaxing experience requirements for applications from Buy-to-Let landlords
Some of the elements of criteria to manage increased deal flow in a more volatile market were also revised:
- Implementing a minimum EPC rating of ‘C’ for office properties valued over £2 million.
- Streamlining the automated decision making enhanced with referrals to an expert underwriter on day one for higher LTV deals
- Adjusting loan terms with interest only available for up to 12 years and capital or part-capital repayment loans for up to 25 years all available across our range of 2-, 3-, 5- and 10-year fixed rates alongside a flexible variable rate option
Any thoughts on the recent changes to Shawbrook’s commercial mortgage products? Let us know in the comments section.
