Shawbrook Bank has made changes to its BTL offering to provide more choice and access to larger loan sizes, and to support more property investors.
The specialist lender brought out new two- and five-year fixed-rate limited-edition BTL products, available on loans between £150,000 and £25m.
The limited-edition two-year fixes features a 110 bps reduction on the lender’s standard two-year fixed-rate product, with rates starting from 5.59% at up to 70% LTV.
Meanwhile, the limited-edition five-year fixes —available at up to 75% LTV — are 50 bps lower than the standard counterpart, with pricing starting from 6.09%.
Alongside the new products, Shawbrook has reintroduced top slicing, where a client’s additional income may be considered as part of the affordability assessment, in order to facilitate a larger loan size for qualifying landlords.
In addition, the lender has removed the need for previous experience requirements for landlords looking to purchase small HMOs.
Daryl Norkett, director of real estate proposition at Shawbrook (pictured above), commented: “In light of interest rate volatility and higher mortgage rates, property investors have had to adapt their business models to thrive in tougher trading conditions.
“These new products provide professional landlords with more options to navigate one of the toughest challenges in the market — meeting affordability assessments and interest cover ratios.
“As we look forward to more good news for property investors in 2024, we continue to evolve our proposition to cater for an ever-wider range of landlords needs, whether that’s options to refinance lower yielding properties, maximise loan to values for new purchases, or access to shorter-term fixed rates.”
