Shawbrook has widened its allowance for multi-unit freehold block (MUFB) properties, and will now accept first-time landlords with MUFBs of up to six units. 

Across its commercial offering, Shawbrook has increased the maximum loan-to-value (LTV) limit to 75% for industrial properties, which includes loans on interest-only, part capital or full capital repayment options.

Shawbrook said this would support landlords diversifying their portfolios, with rates starting from 7.39% at 75% LTV. 

To cater to SME landlords addressing demand for social housing, Shawbrook’s complex buy-to-let (BTL) products are now available on single let or houses in multiple occupation (HMOs). 

The lender has also introduced criteria to support landlords choosing to acquire shares of a property-owning company, instead of owning the individual property themselves. There is now no minimum loan size for this kind of borrowing. 

Sponsored

Five ways mortgage administrators can manage their work-life balance

Sponsored by Pepper Money

Daryl Norkett, head of proposition at Shawbrook, said: “These enhancements not only demonstrate our commitment to meeting the evolving needs of professional landlords, but also acknowledge the market’s adaptation to a higher-interest-rate environment. We’ve observed a significant rise in HMO demand, from 27% of our buy-to-let originations in 2022 and 2023, to 34% in 2024. Additionally, our research last year revealed that 37% of landlords seeking portfolio expansion were interested in commercial properties for diversification. 

“By expanding our criteria, we are creating more opportunities for landlords to diversify and grow their portfolios, whether through higher-yielding residential assets, commercial properties, or social housing. Our goal is to offer innovative and flexible solutions that support our clients at every stage of their investment journey.” 

Earlier this month, Shawbrook announced that it intends to acquire JBR Auto Holdings.