Tag Archives: Shawbrook

Shawbrook now offer “Heavy Refurb” product Buy to Let News, Commercial Finance, Latest Articles

Shawbrook have today announced that it is offering packaged finance products to clients for properties that require more refurbishment work than normally allowed by lenders with their Buy to Let and light refurb products.

Heavy refurbishment is defined by the works being completed costing more than 15% of the property value. This is likely to be extensions, loft conversions, internal reconfigurations and change of use (single dwellings to flats when planning is in place).

Customers must be experienced in refurbishment and applicants should provide evidence of a track record of completed projects (similar scale and cost) within the last 2 years detailed in the Previous Projects Schedule or supporting evidence.

Product details include:

  • Interest rate charged at 0.89% per month up to
  • Maximum 70% Loan to Value* based on the current Market Value not Gross Development Value (value once works are completed)
  • Terms up to 18 months – no minimum interest, or minimum term
  • Repayment options of – fully serviced, part serviced part retained or fully retained.
  • Customers will need to have the funds to cover the cost of the works.

*Additional security is accepted in lieu of a cash deposit. Where the a 2nd charge is offered, this is limited to residential security only and up to a maximum of 65% LTV minus the existing first charge balance.

Where a commercial property is being converted to residential full detailed planning must be in place on completion and the LTV will be restricted to 65%.

If you wish to switch to a long term loan and rent the property after the works are completed the existing client discount of 0.25% will be applied. The arrangement fee on the new loan would be just 0.95% added to the loan on completion outside of the maximum LTV

They would not previously fund projects where the properties required anything more than a light refurb, but now allow property professionals to purchase and finance projects requiring more work at a competitive 0.89%pcm. The choice of repayment structures and additional cross-charging facilities also allow the possibility to borrow 100% of current value on purchase.

For assistance with this or any property finance requirements please, call us on 01603 489118 or email info@property118.com

If you would like to add your own requirements and search for the most popular available Buy to Let products please click here shawbrook


Shawbrook Bank – Definitely not for “brand new customers only” Commercial Finance, Latest Articles

Shawbrook Bank are now offering a 0.25% discount on the margin or a 0.25% discount in the arrangement fee for clients who have already been party to a completed loan with them.

This makes a very refreshing change from lenders who have traditionally only chased new customers with deals showing they realise the value in repeat business and loyal customers.

Big advantages they have over many other less specialist commercial lenders is their desire to lend with far less onerous stress testing compared to high street banks, Interest Only for commercial and BTL property and lending directly to Limited companies. I have been told many times by our own preferred brokers that they driven by common sense not bureaucracy looking for ways of saying yes to clients and not the often received “computer says no” answer from many lenders.

Shawbrook Bank lend on single investment units, portfolios, multi-units, HMO’s and student lets. They lend to both individuals and Ltd Co’s and do not limit the amount of properties that the client can own or the business activities of the limited company.

However they are not able to offer any direct customer advice or sales, and only accept business from intermediary brokers registered to their panel.

Along with their residential investment products they offer interest only mortgages up to 75% LTV and have a range of Commercial Mortgages and short term loans.

Shawbrook commercial mortgages:

Cover both commercial investment properties and owner occupier trading businesses. Their products go up to 75% LTV and they also offer interest only loans which improves business Cash flow.

Short Term Finance

Shawbrook offer market leading rates on short term finance from 0.65% pm with no exit fees for between 6 and 18 months. This is ideal for auction purchases or a speedy purchase in order to secure a discount.

Short Term Light Refurbishment Finance

Shawbrook will lend up to 70% of the purchase price at 0.73% pm for between 3 and 12 months. This is suitable for clients looking to purchase, or refinance a residential or mixed use property quickly, undertake light refurbishment and then either sell on or hold for rental.

Medium Term Refurbishment Product

They will lend up to 70% of the after works value on an interest only basis. This product is for clients that are purchasing or refinancing property with the intention of completing minor refurbishment before letting the property out.

Obviously there are many other lenders that may be suitable in terms of criteria or lower costs and it this is not meant to be an advert to only use Shawbrook, but it is great to see a lender valuing its existing customers.

For assistance with any property finance requirements please, call us on 01603 489118 or email info@property118.com

If you would like to add your own requirements and search for the most popular available Buy to Let products please click hereShawbrook Bank


Second charge BuytoLet loans via Shawbrook Buy to Let News, Commercial Finance, Landlord News, Latest Articles, Property News

shawbrookI received an email today from Shawbrook outlining their Secured BuytoLet Loans which on first glance I nearly ignored as I normally do for other second charge lenders.

On second thought though it struck me that I get a lot of questions from readers who would like to raise equity, but either do not want to remortgage as they are locked into extremely attractive tracker rates from the pre-credit crunch days, or their existing lender no longer offers further advances.

Therefore despite the high interest rate at 9.95%, which I would normally tell people to avoid, it could be possible that by not moving the whole mortgage a small amount extra on a higher rate might actually be more cost effective.

Shawbrook while only dealing direct with brokers are becoming a popular lender of choice for more difficult BuytoLet and commercial deals.

I asked Howard Reuben of HDconsultants if a lender like Mortgage Express, who are desperate to find any excuse to enforce redemption of a  BuytoLet mortgage, if it was possible they would then see the borrower as in default of their terms and conditions. The response upon investigation was not clear cut:

“We have not heard of any such foreclosures on the basis that a 2nd charge was implemented, but could not state categorically that a lender would not consider this action in the future though as it is assumed that it all depends on the lenders attitude towards their borrowers at that time. However the product, which has actually been available for quite a while now, is a successful product. Borrowers should of course be advised of all potential pros and cons – which is down to the Adviser.”

Shawbrook BuytoLet Secured Loan cost and criteria:

  • Interest Rate 9.95%
  • Lender fee £1,250
  • Maximum LTV 65% including existing mortgage
  • Maximum number of properties in a borrowers portfolio of 3
  • Early repayment charges 3% first 5 years and 1% thereafter
  • Stress tested so rent has to cover 110% of existing mortgage and new loan
  • Min Loan size £5,000 Max Loan size £75,000
  • For residential investment properties only – no DSS or HMOs
  • Max age 80 years old
  • Max term 25 years

To summarise the costs are high, the criteria strict, the LTV low and certainly should only be considered in the right circumstances. Although as you can tell I am certainly not going to sell anyone on the idea I thought it was interesting to discuss this type of product considering my first reaction was just to delete it out of my inbox.

Please let me know what you think if you have an opinion by leaving a comment below.

To search for a Buy to Let mortgage and Calculate how much you can borrow please Click Here

If you would like any advice from our recommended mortgage broker please do not hesitate to contact me on 01603 489118 or info@property118.com

 


Shawbrook Bank the common sense lender Buy to Let News, Commercial Finance, Landlord News, Latest Articles, Property News

Our preferred commercial finance broker Cliff Verrill reports that Shawbrook Bank are driven by common sense not bureaucracy looking for ways of saying yes to clients and not the often received “computer says no” answer he gets from many lenders.

Shawbrook Bank lend on single investment units, portfolios, multi units, HMO’s and student lets. They lend to both individuals and Ltd Co’s and do not limit the amount of properties that the client can own or the business activities of the limited company.

All their arrangement fees have recently been reduced, along with interest rates in the past couple of weeks with further reductions announced today. Continue reading Shawbrook Bank the common sense lender


Shawbrook Bank slash arrangement fees and rates Buy to Let News, Commercial Finance, Landlord News, Latest Articles, Property News

Shawbrook Bank specialists in commercial and BTL finance have reduced their arrangement fees to 1.70% a saving of 0.80%, and their rates by up to 0.60% across their term product range.

Big advantages Shawbrook have over many other commercial lenders is their desire to lend with far less onerous stress testing compared to high street banks, Interest Only for commercial and BTL property and lending directly to Limited companies.

Malcolm Jones of Brooklands commercial finance said ” Shawbrook are specialists in good sense not using a tick box appraoch and allow me direct access to discuss cases with underwriters. This is invaluable when trying to get cases through for clients and they also have excellent turn around times.” Continue reading Shawbrook Bank slash arrangement fees and rates


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