Shawbrook has revamped its lending criteria for landlords investing in MUFBs and serviced accommodation.
The specialist bank now lends on portfolios and larger blocks of flats operating as serviced accommodation.
This comes off the back of increased demand for MUFB mortgages, with Shawbrook registering a 14% increase in this business last year.
For this area, Shawbrook’s maximum loan amounts will continue to be based on market rent under an assured shorthold tenancy as confirmed by valuation.
These mortgages are available at up to 75% LTV.
For portfolios with 10 or fewer units, no additional evidence is required.
However, for portfolios exceeding 10 units, Shawbrook will require either two years’ accounts for established assets or a cashflow forecast for new assets to assess income generated on a nightly basis.
“Throughout 2024, we saw a significant rise in landlords exploring investments in MUFBs, and this has continued into 2025 as more landlords seek to diversify their portfolios,” said Daryl Norkett, director of Shawbrook’s real estate proposition.
“Our enhanced criteria for serviced accommodation lending reflect our dedication to support landlords as they adapt to market trends and explore new income streams, helping them unlock greater potential and long-term success in the rental market.”
