Shawbrook’s development finance proposition was introduced in 2016, and is broadly split into two categories:
Heavy refurbishment
Where the developer is looking to make changes to the use or the size of an existing building.
Ground up development
Where the developer is looking to purchase land, or demolish an existing building and replace with a residential or mixed-use scheme.
New build developments or refurbishment projects with a minimum loan size £2.5m, with a maximum loan size £25m. Minimum single property value £150,000.
Maximum single property value £1.5m – higher values can be considered on a case by case basis. Maximum gearing at the lower of 80% of total costs, or 65% of the gross development value.
Borrower’s contribution to be injected into the purchase costs with Shawbrook funding the difference and 100% of the build and finance costs.
Shawbrook offer second charge loans to customers via their broker network.
Fixed rates will start from 4.20%, with variable rates from 3.80%, on second charge products with LTV bandings between 65% and 85%.
Minimum property value is £70,000.
Shawbrook are renowned for their bridging finance and they have offered a number of both competitive and innovative products, via their intermediary distribution channel.
Shawbrook’s Bridging Finance proposition is available for Limited Companies, LLP’s, and individuals with finance also available for expats.
Shawbrook’s buy to let finance proposition is renowed as they are one of the only lenders that work on an investment valuation as opposed to a bricks and mortar valuation, subject to valuers comments. Shawbrook will lend to Limited Companies, LLP’s, Ex pats, trusts and Offshore Limited Companies.
Shawbrook will lend on the following assets: single let residential houses and flats, portfolios including a mix of residential and commercial properties, blocks of flats typically up to 20 units, houses in multiple occupation (licensed HMOs), multiple flats on a freehold title, student accommodation, flats above commercial premises and prime low yielding properties.
Shawbrook lend up to Up to 75% Loan to Value (LTV) with margins from 2.99%. Loan sizes are from £50k to £15m with mortgage terms from 3-30 yrs. Arrangement fees are from 1.25%, with 3, 5, 6-30 year interest only options