Shawbrook lowers minimum loan for commercial and semi-commercial

The minimum loan size in its commercial and semi-commercial deals begin from £150,000, and rates start from 7.79 per cent and 7.14 per cent respectively between loans of £150,000 to £250,000.

The lender said that pricing across the wider range will begin from 6.79 per cent up to £25m.

Shawbrook said that the adjustment ensures that it is catering to “financial needs of small and large professional property investors, supporting both seasoned commercial property investors and buy-to-let (BTL) landlords seeking to diversify into higher yielding assets”.

Daryl Norkett, director of real estate proposition at Shawbrook, said: “Our decision to reduce the minimum loan size for our commercial and semi-commercial products reflects our commitment to supporting the success of professional property investors.

“We recognise that landlords are increasingly looking to diversify into commercial property investment. Our research shows residential landlords are looking to add commercial properties to their portfolios, and 37 per cent cite diversification as the main reason. By providing increased flexibility and competitive rates, we can empower our customers to achieve their property ambitions.”

It is the second time that the lender has lowered the minimum loan size for commercial and semi-commercial in a few months, having cut the minimum loan for both ranges to £250,000 in October.

At the same time, the lender reduced rates in the range and increased the maximum loan to value (LTV) on semi-commercial deals to 75 per cent and 65 per cent for commercial deals.

The lender also reintroduced retail assets acceptable security and is relaxing experience requirements for applications from BTL landlords.

Shawbrook said when it made the changes that this was to satisfy rising demand from investors and landlords, and it would allow it to deliver complex funding solutions to commercial investors and landlords.

Shawbrook lowered commercial and semi-commercial rates at the tail-end of January by up to 0.55 per cent and 0.35 per cent respectively.