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27 July 2015

Shawbrook Bank’s Commercial Mortgages division has announced a series of enhancements to its Residential Investment product suite, along with a new product to complement the existing range. These revisions are designed to help the lender cater for a wider client profile, and bring further clarity to the market for its Broker Partners at a highly competitive price point.

The new product, named RI0, is designed for simple residential properties intended for private letting, which do not require any works. The product is priced at 3.79% on LTVs up to 60% and 4.10% at 75% LTV, with reduced legal fees, and is aimed at investors with available deposits and whose rental income services their debt.

Shawbrook has also refined its existing RI1 specialist residential product to cover multi-units; leasehold flats; newly built or newly converted flats; flats above commercial; residential property let to the council or housing association; and properties requiring minor works prior to being let out.

The rate reductions, which range from 0.05% to 0.15% depending on LTV, demonstrate the lender’s commitment to evolving its offering to deliver positive outcomes for the customer. Incorporating the new price reductions, Shawbrook’s Residential Investment range and rates are now as follows:

• RI0 – NEW simple residential priced at 3.79% on LTVs up to 60% and 4.10% at 75% LTV
• RI1 – for specialist residential priced at 4.40% on LTVs up to 60% and 4.70% at 75% LTV
• RI2 – for HMOs and student lets priced at 4.50% on LTVs up to 50% and 4.85% at 75% LTV
• RI3 – for portfolios priced at 4.40% on LTVs up to 60% and 4.70% at 75% LTV

Further to these changes, the Bank has adjusted its pricing strategy to provide a simpler and more tailored approach for expat business – a sector that has seen strong growth for Shawbrook over the past 18 months. A simple price loading has been incorporated with +0.25% for expat business on the new RI0 simple residential product, and +0.10% for RI1/2/3 within the relevant LTV banding.

Karen Bennett, Sales and Marketing Director, Commercial Mortgages, Shawbrook Bank, commented:

“We are aware that ours is an ever-changing industry, and we’re always looking to improve to support our broker partners and allow customers to benefit from healthy competition. A commitment to providing clarity across our credit appetite was one of the driving reasons for the new product, and we are confident that the rate reductions will ensure the range remains highly competitive. We are very excited about the new RI0 product, which we hope will prove valuable to investors looking for simple residential investment property. We look forward to the impact this will have on market growth.”