Shawbrook improves offering for Commercial and Semi-Commercial Business
08 June 2016
Shawbrook’s Commercial Mortgages division announced further enhancements to its commercial and semi-commercial product range for loans up to £10m, by reducing rates, increasing Loan-to-Value (LTV) buckets and extending their interest only offering.
To summarise:
Reduced rates across both commercial and semi-commercial product range:
- CI2 (semi-commercial) ≤60% LTV – 0.15% reduction
- CI2 60.01 – 65% LTV – 0.2% reduction
- CI2 65.01 – 75% LTV – 0.65% reduction
- LCI2 (large semi-commercial) ≤65% LTV – 0.3% reduction
- LCI2 65.01 – 70% LTV – 0.2% 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 (where demand and sales market is strong)
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 to all of the above product enhancements, Shawbrook is also delighted 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.
The Bank 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 they are 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 their Broker Partners with more clarity on the offering to their clients. In making these changes Shawbrook is demonstrating its continued commitment to improving their product offering, in line with their appetite to lend.
Karen Bennett, Sales & Marketing Director for Shawbrook Commercial is positive about the benefits for brokers and their clients:
“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.”
