Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Shawbrook Reduces Bridging Loan Costs and Eases Lending Criteria

Shawbrook has announced a series of changes to its bridging loan products, including lower costs, improved lending criteria, and reduced document requirements for brokers. The specialist bank has also introduced enhancements to its loan-to-value (LTV) limits and minimum loan amounts.

Shawbrook will now offer up to 90% LTV on lending for refurbishment costs. The minimum loan amount for smaller loan products has been reduced from £150,000 to £100,000. Borrowers taking out loans between £100,000 and £150,000 will see rate reductions of up to 0.2% per month, while rates on loans above £150,000 will start from 0.69% per month.

The bank has also simplified several underwriting requirements, including making title insurance available on lending for refurbishment cost facilities. For commercial bridging finance, previous experience is no longer required, provided there is a satisfactory exit strategy. Criteria for heavy refurbishment experience have been relaxed, allowing underwriters to support customers moving into more complex projects.

Shawbrook has removed several underwriting requirements, reducing the number of documents brokers need to provide. These changes build on the bank’s recently launched automated valuation model (AVM) bridging proposition, which now offers up to 75% LTV on individual houses and flats, subject to criteria.

Last month, Shawbrook also launched a dedicated purpose-built student accommodation (PBSA) range.

These updates are relevant for UK letting agents and inventory clerks who work with landlords and property investors seeking bridging finance for refurbishment and development projects.