Shawbrook

Shawbrook Bank was established in 2011, formed through the merger of several specialist lending businesses with the backing of private equity investors who recognised the growing gap in UK commercial lending left by retreating high street banks. From its earliest days, Shawbrook positioned itself as a specialist rather than a generalist, focusing on market segments where deep expertise and flexible underwriting could deliver better outcomes for borrowers than the standardised approach of mainstream banks. This specialist focus has been central to Shawbrook's growth into one of the UK's most significant commercial property lenders.

The bank received its full banking licence in 2011 and has grown steadily through a combination of organic lending growth and strategic acquisitions. In 2017, Shawbrook was acquired by a consortium led by BC Partners and Pollen Street Capital, taking the bank private and providing the capital base to accelerate its commercial lending ambitions. This private ownership structure has allowed Shawbrook to make long-term investment decisions without the short-term pressures of public market expectations, resulting in consistent growth in its commercial property lending book and the development of increasingly sophisticated product offerings.

Shawbrook's commercial mortgage division provides term lending for the acquisition, refinance, and capital release of commercial and mixed-use properties. The bank lends from £50,000 to £25 million on individual transactions, with the ability to accommodate larger requirements through syndication or club arrangements. Loan-to-value ratios of up to 75% are available, with terms of up to 30 years for the strongest applications. Shawbrook's commercial mortgage team has particular strengths in several areas that distinguish it from competitors: complex ownership structures, portfolio transactions, and properties with non-standard characteristics that require detailed underwriting rather than formulaic assessment.

The bank's bridging finance division is one of the most active in the UK market. Shawbrook provides short-term loans from £50,000 to £15 million, with terms of up to 24 months and LTV ratios of up to 75%. The bridging team specialises in several distinct categories of short-term lending: acquisition bridging for time-sensitive purchases, refurbishment bridging for light and heavy renovation projects, auction finance for properties purchased at auction requiring 28-day completion, and chain-break bridging for borrowers who need to complete a purchase before their existing property has sold. Shawbrook's bridging decisions are underpinned by experienced credit professionals who understand property valuation and refurbishment costs, enabling them to make quick but well-informed lending decisions.

Shawbrook's development finance proposition covers the full spectrum of residential development projects, from single-unit conversions to schemes of up to 100 units. The bank provides facilities that cover land acquisition, demolition, construction, professional fees, and statutory costs, with gross development value lending of up to 70% and day-one land facilities of up to 65% of purchase price or current market value. Shawbrook's development team assesses each project individually, considering the developer's track record, the scheme's location and design, the target market, and the current sales evidence. This project-by-project approach means Shawbrook can support schemes that other lenders might decline — for example, developments in secondary locations where the developer has strong local knowledge and a proven sales record, or conversion projects where the existing building requires significant structural work.

One of the key strengths that sets Shawbrook apart is its understanding of professional property investors and developers. The bank has built specific products and processes for experienced borrowers who operate through limited company structures, hold multiple properties, and require ongoing facilities rather than one-off transactions. For professional landlords, Shawbrook offers portfolio mortgage facilities that allow multiple properties to be held under a single facility agreement, simplifying administration and providing greater flexibility for portfolio management. For developers, the bank can provide revolving or repeat-use development facilities for borrowers with a consistent pipeline of projects, reducing the time and cost of arranging finance for each individual scheme.

Shawbrook's underwriting approach combines experienced human judgement with robust credit assessment. The bank employs specialist underwriters with deep property sector knowledge who can assess complex deals quickly and accurately. This expertise is particularly valuable for transactions involving mixed-use properties, properties with short leases or vacant possession, assets requiring refurbishment or change of use, and borrowers with complex income or corporate structures. Where other lenders might decline these cases on the basis of falling outside standard criteria, Shawbrook's underwriters assess the underlying fundamentals and make pragmatic lending decisions.

The bank's typical interest rates for commercial mortgages start from around 5.75%, with the exact rate depending on loan size, LTV, property type, and borrower profile. Fixed-rate options are available for periods of two to five years, with variable rates linked to Bank of England Base Rate. Bridging loan rates start from around 0.50% per month, with arrangement fees of 1% to 2%. Development finance rates are typically structured as a margin over Base Rate, with the facility fee dependent on scheme size and complexity.

Shawbrook's property types coverage is comprehensive. The bank finances offices, retail units, industrial and warehouse properties, mixed-use buildings, semi-commercial properties, HMOs, multi-unit freehold blocks, care homes, nurseries, student accommodation, and a range of specialist assets. For each property type, the bank has developed specific underwriting guidelines that reflect the particular risks and characteristics of that asset class, ensuring that valuations and lending decisions are informed by genuine sector knowledge rather than generic commercial property assumptions.

The application process with Shawbrook is designed to be efficient for both brokers and borrowers. Initial enquiries are typically reviewed within 24 hours, with indicative terms provided quickly for straightforward cases. The bank's dedicated broker support team provides a single point of contact throughout the transaction, managing the process from initial enquiry through to completion. For complex transactions, Shawbrook can arrange pre-application meetings with senior underwriters to discuss deal structure and identify any potential issues before formal submission, reducing the risk of surprises during the application process.

Shawbrook is regulated by the Financial Conduct Authority and the Prudential Regulation Authority, providing the full regulatory protections associated with a UK-licensed bank. The bank's strong capitalisation and institutional backing give borrowers and brokers confidence in its ability to deliver on commitments and maintain a consistent lending appetite through different market conditions.

For Commercial Mortgage Broker clients, Shawbrook is a go-to lender for complex commercial property transactions that require genuine underwriting expertise. Whether the deal involves a multi-property portfolio, a development scheme in a secondary location, a bridging loan for an auction purchase, or a commercial mortgage on a specialist property type, Shawbrook's combination of flexibility, expertise, and competitive pricing consistently delivers strong outcomes. Our established relationships with Shawbrook's senior credit team enable us to present complex cases effectively and negotiate the best available terms for our clients.