Shawbrook’s Commercial Mortgages division has made changes to its commercial and semi-commercial product range for loans up to £10m.
It has reduced rates, increased loan to value (LTV) buckets and extended its interest-only offering.
Reduced rates across both commercial and semi-commercial product range:
- CI2 (semi-commercial) ≤60% LTV – 0.15 percentage point reduction
- CI2 60.01 – 65% LTV – 0.2 percentage point reduction
- CI2 65.01 – 75% LTV – 0.65 percentage point reduction
- LCI2 (large semi-commercial) ≤65% LTV – 0.3 percentage point reduction
- LCI2 65.01 – 70% LTV – 0.2 percentage point reduction
Increased LTV buckets across both the commercial and semi-commercial product range:
- LCI1 (large commercial) up to 70% LTV from 65% LTV
- LCI2 up to 75% LTV from 70% LTV
Improved interest-only options for both commercial and semi-commercial product range:
- CI1 (commercial) interest-only available up to 70% LTV from 65% LTV
- CI2 interest-only available up to 75% LTV from 70% LTV
- LCI1 (large commercial) interest-only available up to 70% LTV from 65% LTV
- LCI2 interest-only available up to 75% LTV from 70% LTV
In addition, Shawbrook is to open up its offering in this area to expat clients, who can borrow against commercial assets providing they meet the bank’s existing expat criteria.
Shawbrook says it has recognised that following recent SDLT changes, the commercial and semi-commercial markets are likely to attract more attention from investors looking to distribute their risk across different assets rather than focusing on a purely residential portfolio. With the above improvements to its product range, Shawbrook feels confident that it is in a strong position to respond to this demand.
CI2 has changed from 4 to 3 LTV bands, and by streamlining this range and providing more guidance on criteria, Shawbrook aims to provide its broker partners with more clarity on the offering to their clients.
Karen Bennett, sales and marketing director for Shawbrook Commercial, said: “These changes form a key part of our ongoing commitment to service delivery and product improvements, with a great deal of research and thought informing our decision-making.
“It’s been a challenging yet rewarding period for all Shawbrook teams, with these enhancements to commercial and semi-commercial following recent updates to our short term criteria.
“We hope that our broker partners recognise the benefits to their clients that these updates will provide. With rates dropping and increased LTV buckets across the entire semi-commercial range, Shawbrook is pushing positive customer outcomes to the fore whilst clarifying our lending appetite to brokers.”