LP.com

Shawbrook Bank recently announced a relaxation of its lending standards for professional landlords in an effort to more broadly serve the changing needs of the real estate market. These adjustments include expanding its financial products and services for different types of properties and investment strategies to meet the diverse portfolio needs of professional landlords.

For starters, Shawbrook Bank is now accepting first-time landlords for mufb (multi-use real estate) loans for up to six units. This change not only provides greater flexibility and financial support for investors new to the market, but also helps expand supply in the housing market.

Second, lending policies for industrial real estate have also been significantly restructured. Banks have increased the maximum loan-to-value (LTV) ratio for industrial properties to 75% and introduced a variety of loan options, including interest-only, partial capital repayment or full capital repayment options. These measures are designed to help investors manage their capital more efficiently and generate higher returns from medium to long-term investments.

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Shawbrook Bank's buy-to-let product has also been optimized and is now available not only for single-let properties, but also for homes in multiple occupation (HMOs) and leases to operators of social housing or supported living services. This flexibility allows landlords to maximize their return on investment by choosing the most appropriate loan product based on market demand and investment strategy.

Daryl Norkett, Head of Proposals, said the adjustments reflect Shawbrook Bank's commitment to understanding and meeting the increasingly complex and diverse needs of professional landlords. He noted that as the demand for multi-share homes grows and landlords seek to diversify their portfolios, the bank will continue to provide innovative and flexible financial solutions to support the needs of its customers at different stages of investment.

In addition, the bank has introduced new lending criteria to support landlords who choose to expand their portfolios by purchasing shares in a company rather than purchasing a property outright, and there is no set minimum loan size limit. This new policy further increases landlords' choice and flexibility, enabling them to make more precise and effective investment decisions in line with market changes and personal strategies.