Shawbrook has rolled out a series of criteria changes designed to support both new entrants and seasoned investors in expanding their property portfolios.
Shawbrook broadened its scope for multi-unit freehold blocks (MUFBs), now welcoming first-time landlords seeking MUFBs up to six units.
In addition, the lender further enhanced its commercial proposition by increasing their maximum loan-to-value (LTV) to 75% for industrial properties, offering loans available on interest-only, part-capital, or full capital repayment.
This supports landlords in diversifying their portfolios with commercial properties, with rates starting from 7.39% at 75% LTV.
Furthermore, Shawbrook also released new criteria that supports landlords choosing to acquire the shares of a property-owning company, as opposed to the individual properties themselves with no minimum loan size.
This strategic change aims to provide landlords with a variety of lending solutions, delivering specialist finance to their diverse customer base.
Daryl Norkett, head of proposition at Shawbrook, said: “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.
“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.”
