Shawbrook expands commercial loan offerings for landlords

Shawbrook Bank has unveiled a series of enhancements to its commercial investment products, designed to bolster support for property investors aiming to diversify and grow their portfolios with commercial assets.

These changes underscore the lender’s aim to deliver tailored financial solutions across various property types, featuring increased maximum loan-to-value (LTV) ratios for key asset classes.

‘Renewed confidence among landlords’

Daryl Norkett, the bank’s director of real estate proposition, said: “We’ve seen a notable rise in investor interest in commercial assets this year, which reflects renewed confidence among landlords in the commercial market, as they look to actively expand and diversify their portfolios.

“Our latest enhancements underscore our commitment to supporting professional property investors in the commercial and semi-commercial markets, helping them seize growth opportunities and strengthen their portfolios.”

Investors managing diverse asset classes

Shawbrook is offering blended LTVs based on individual security values within a portfolio, providing flexibility for investors managing diverse asset classes.

Other changes include:

• Retail units: Maximum LTV has been raised to 70% for interest-only loans and 75% for loans with partial or full capital repayment options
• Healthcare and education assets: Properties such as GP surgeries, dental practices, veterinary clinics, and nurseries are now eligible for up to 75% LTV on interest-only, partial, or full capital repayment loans
• Industrial units: Shawbrook continues to support industrial assets with a 75% LTV cap for interest-only loans, a level introduced earlier this year.

First-time landlords seeking specialised funding

Shawbrook has also relaxed its experience criteria, broadening access for first-time landlords seeking specialised funding for semi-commercial properties.

For these investors, Shawbrook will offer a maximum loan size of £750,000, applicable to assets with up to two commercial units and six residential units.

This enhancement builds on previous changes which extended Shawbrook’s support for new landlords investing in smaller Houses in Multiple Occupation (HMOs) and Multi-Unit Freehold Blocks (MUFBs).

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