Shawbrook Boosts Criteria for New and Portfolio Landlords, Broadening Access

Shawbrook, a leading specialist bank, has announced a series of significant enhancements to its lending criteria, designed to support both new and experienced professional landlords in growing and diversifying their property portfolios. These changes reflect Shawbrook's commitment to adapting to evolving market demands and supporting various investment strategies.

One key update sees Shawbrook removing previous experience requirements for first-time landlords looking to invest in smaller Houses in Multiple Occupation (HMOs) and Multi-Unit Freehold Blocks (MUFBs). This strategic move aims to facilitate new entrants into these potentially higher-yielding segments of the buy-to-let market. Furthermore, Shawbrook will now lend up to £750,000 to first-time landlords on semi-commercial loans for assets with up to two commercial units and six residential units.

Key Benefits

For its commercial offering, Shawbrook has increased the maximum loan-to-value (LTV) limit to 75% for industrial properties, providing more leverage for landlords diversifying into this growing asset class. This includes loans on interest-only, part-capital, or full capital repayment options, with rates starting from 7.39% at 75% LTV. The lender also accepts industrial units at up to 75% LTV for both interest-only and capital repayment.

In response to the demand for social housing, Shawbrook's complex buy-to-let (BTL) products are now available for both single-let and HMO properties that are let to social housing or supported living operators. This enhancement supports SME landlords in meeting crucial housing needs.

Eligibility Criteria

Additionally, Shawbrook has introduced new criteria to support landlords who choose to acquire shares of a property-owning company, rather than individual properties, with no minimum loan size for this type of borrowing.

Daryl Norkett, Head of Proposition at Shawbrook, emphasized the importance of these enhancements: "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." He noted a significant rise in HMO demand, from 27% of BTL originations in 2022-2023 to 34% in 2024, and growing interest in commercial properties for diversification.

Application Process

Shawbrook's goal is to offer innovative and flexible solutions that support clients at every stage of their investment journey, enabling them to diversify and grow their portfolios through higher-yielding residential assets, commercial properties, or social housing.

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