Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Shawbrook Announces Enhancements to Bridging Loan Products
Shawbrook has introduced a range of enhancements to its bridging proposition, including product and underwriting improvements. The changes are designed to make funding more accessible and streamline the application process for brokers and property professionals.
The updates include an increase to up to 90% day-one loan-to-value (LTV) on lending for refurbishment costs (LFC). Pricing has been reduced across selected bridging products, with rate reductions of up to 0.20% per month for loans between £100,000 and £150,000. For loans above £150,000, rates now start from 0.69% per month.
The threshold for smaller loan products has been lowered from £150,000 to £100,000. Shawbrook has also simplified several underwriting requirements, including the availability of CLS title insurance on LFC facilities. Commercial bridging loans no longer require previous experience, provided there is a satisfactory exit strategy, and criteria for heavy refurbishment experience have been relaxed.
Additionally, Shawbrook has removed several underwriting requirements, reducing the number of documents brokers need to provide. These changes are relevant for letting agents and inventory clerks working with clients seeking bridging finance for property refurbishment or investment.
Source: Mortgage Strategy