The limited edition five-year fixed rate product is available for loans between £150,000 to £25m and is 0.5 per cent lower than the lender’s standard five-year fixed product up to 75 per cent loan to value (LTV). Rates begin from 6.09 per cent.
The company’s limited edition two-year fixed rate is 1.1 per cent lower than its standard equivalent with pricing beginning from 5.59 per cent up to 70 per cent LTV.
The lender noted that compared to its standard product, available loan sizes were up to eight per cent larger and the new products have arrangement fee of five per cent.
Shawbrook has also reintroduced top slicing so a client’s additional income can be considered in their affordability assessment. According to Criteria Brain, there are around 37 lenders who currently offer top slicing.
This will allow borrowers with additional surplus income alongside their investment property to access larger loan sizes that may not be accessible with rental income alone.
Shawbrook has also removed the need for previous experience when funding small houses in multiple occupation (HMO) applications, which will support investors looking to grow their property portfolio or experience buy-to-let landlords who want to diversify.
Daryl Norkett, director of real estate Proposition at Shawbrook, 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.”
