Shawbrook Bank

Mortgage Type

Buy To Let

Property Value (min)

£75,000 Exception is residential portfolios where min value is £50,000 for at least 2 properties. For properties under £100,000 - see specific product range

Advance (min)

£50,000

Advance (max)

£15,000,000 per client to 75% LTV.
Loans over £750,000 have specialist rates Exceptions and portfolios considered.

Term (Max)

30 years

Minimum Age

21 years

Maximum Age

80

Family Cash Gift Deposit

Yes - Gift letter should be completed. Has to include copy of donor’s identity and a bank statement showing funds in a UK bank account

Family Gift of Equity Deposit

Yes - evidence of payment conduct is required for any borrowings the parents may have secured on the property to ensure they are not shifting bad debt to the applicant while still managing the asset. A Gift letter is also required

Income (min)

No Minimum Income

Restrictions

No restrictions on numbers with other lenders- maximum £10,000,000 to a single customer.
Interest only considered on all property types on a 10 Yr. Term.

Note: - Energy Performance Certificate (EPC) rating of 'C' or above will be eligible for the discount on the arrangement fee of 1.50%.
In addition, landlords can apply for a partial refund on the arrangement fee if the EPC rating improves to at least a 'C' throughout the lifetime of the mortgage

Capital raising: - Capital raises of more than £150,000 or when more than 50% equity is being removed that are not in keeping with profile should have a satisfactory explanation.
Ex-pats can be considered if funds are being used for a further purchase of a UK asset.

Repaying a bridge Acceptable when the bridge was used to complete works or an auction purchase.
In other scenarios, we will need to understand the reason bridging finance was used.

To complete works: - Minor works (Décor/internal fittings/general upkeep etc) to the security property
are permitted where the value and structural integrity of the building will not be compromised.

Undervalue Purchase: -
Subject to:
Acceptable when the difference in purchase price and market value is within 20% and the seller
is unrelated to our customer

If the difference in market value and purchase price is over 20% then further investigation will
be required

If there is evidence of stressed position of the seller then we cannot proceed.

Family related transfers at nil or below market value are acceptable with an acceptable explanation for the transaction with evidence that the family member is not in a distressed financial situation. We will
require:

Mortgage history/credit search (at our discretion)
Letter of no interest
Clear bankruptcy search against outgoing owner
Declaration of Solvency
Indemnity policy

Transfers from associated Ltd companies at less than market value are unacceptable.
Increase in value since vendor purchased – For purchases where there has been a substantial increase in value since purchase, we require a written explanation which should be referred to the valuer for comment and validation.
Portfolio undervalue Can be considered by exception when we lend no more than 75% of the value and 90% of purchase price.
The minimum portfolio value should exceed £1.25m.

Customer type: -

Individuals (UK, EU and other foreign nationals residing in the UK, see ID section)
LTD Company (UK Incorporated)
PLC (UK Incorporated)
LLP (UK Incorporated)
Trusts (Minimum Loan size £1m new loans, Refinances case by case)
SIPPS (Minimum Loan size £1m)
Ex-pats

Ltd, LLP or PLC: - For company applications where shareholding is owned by another company, it will be necessary to trace back the ultimate beneficial owners and obtain the relevant personal guarantees.

Personal Guarantees As a minimum, a personal guarantee equal to 25% or £50,000 (whichever is higher) of the loan size will be required from all directors where they have 25% or more shareholding.

Incorporations of BTL Portfolios: -
Considered by referral subject to the following being to our satisfaction
Partnership Accounts, Tax Returns, Partnership Agreements and partnership Bank Statements
Accountant’s Advice Letter
Minimum of 10 BTL Properties
Business purchases are acceptable in England, Scotland & Wales

Tenure
Freehold and Feuhold (in Scotland) acceptable
Leasehold with minimum 50 years remaining at the end of the mortgage term is acceptable

Tenancy
An assured shorthold tenancy agreement (AST) for a period of between 6 to 12 months is required. Protected tenancies are considered subject to demand for resale as confirmed by the valuer.
See also "Other" for Holiday Lets, Serviced Apartments and Airbnb and Local Authority and Vulnerable Tenants.

Demand for Sale
Unless stated differently below by asset type 75% LTV Interest Only is permitted on all security when sales are
achievable within 12 months

Demand for Letting
Unless stated differently below by asset type 75% LTV Interest Only is permitted on all security when letting is
achievable within 0-3 months
AST re-letting demand is classified as follows
Expected 0-3 months – 75% LTV Interest Only is permitted unless stated differently by asset type.
Moderate 3-6 months - LTV reduced by 5%to 70% LTV
Weak 6+ months – Not acceptable.

Let to Buy (Turning Residential into Buy to Let)

Remortgage of residential into a BTL accepted

DWP Tenants

Accepted

Ex-Local Authority Properties

Ex-local houses considered
Ex-local flats considered

Minimum years remaining on leasehold property

85 years remaining at term expiry, less considered to 55 years remaining at the end of the term subject to positive valuer commentary

Minimum Ownership

No minimum ownership period
before remortgage considered. Will lend against OMV within 6 months subject to criteria.

Permanent rights to reside and remain

Yes (unless Ex-Pat)

Ex-Patriates

Applicants must own 2 properties within the UK with 1 of them have a UK mortgage on. Income MUST equal £50,000. Any proof of address and ID must be countersigned as true originals by a notary within their country of residence or from the UK embassy. Proof of income will also be required. Check product guide for max LTV's as criteria has changed recently.
*****
EU Nationals can be considered on the basis that: -
When they reside in the UK

They meet standard experience criteria, i.e. experience within the last two year in the UK and property investments.
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Ex-pat applications when the security is the client's previous residential property.

New Builds

All new builds considered.

Credit Score

No

Rental Calculation

Conduct calculator which will supersede any listed criteria.

Limited Company: –
(5 year fix, 10 yr term)125% @ Pay rate AND Outside Portfolio check 110% @ 7%

(Variable rate & fixed up to 5 yrs) Margin + 2.40% stress min 5.5% x 125% AND

Outside Portfolio check 100% @7%

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Lower Rate Tax Payer: –

(5 yr fix, 10 yr term+) 155% @ Pay rate, AND Outside Portfolio check 110% @ 8%

(Variable rate & fixed up to 5 years) Margin + 2.40% stress min 5.5% x 140% AND outside Portfolio check 100% @ 8%

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Higher Rate Tax Payer: –

(5 yr fix, 10 yr term+)155% @ Pay rate, AND Outside Portfolio check 110% @ 8%

(Variable rate & fixed up to 5 years) Margin + 2.40% stress min 5.5% x 140% AND Outside Portfolio check 100% @ 8%

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Shawbrook HMO: –

(Limited Co: – 5 yr fix, 10 yr term+)150% @ Pay rate,AND Outside Portfolio check 110% @ 7%

(Variable rate & fixed up to 5 years) Margin + 2.40% stress min 5.5% x 150% AND Outside Portfolio check 100% @ 7%

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Lower Rate Tax Payer: –

(5 yr fix, 10 yr term+)175% @ Pay rate,AND Outside Portfolio check 110% @ 8%

(Variable rate & fixed up to 5 years) Margin + 2.40% stress min 5.5% x 160% AND Outside Portfolio Check 100% @ 8%

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Higher Rate Tax Payer: –

(5 yr fix, 10 yr term+)175% @ Pay rate,AND Outside Portfolio check 110% @ 8%

(Variable rate & fixed up to 5 years) Margin + 2.40% stress min 5.5% x 160% AND Outside Portfolio check 100% @ 8%
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Historic CCJ’s & Defaults

Unsatisfied CCJ’s/Defaults in last 24 months unacceptable.
A1 credit profile on secured and unsecured lending. Will also look at the credit profile of any businesses that clients are associated with. Will take a pragmatic view of any small blemishes in their credit conduct, but any missed mortgage
payments are likely to lead to rejection

Valuation Fees

Paid direct to lender at the lender fee scales

Maximum number of applicants

No maximum

Countries

Will lend in England, Wales and Scotland

Access

Access to Shawbrook Bank is available via selected packagers only.

Missed mortgage payments

Adverse considered on a case by case basis. Missed mortgage payments over 12 months ago considered.

Property Type / Commercial

Single Residential investment unit, HMO’s, student BTL. Multi-unit on 1 title, semi commercial, commercial investments units plus owner occupied commercial units. Available to trading Ltd Co. SPV’s and individuals.
SIPP's and SAS accepted
Offshore LTD Companies and Trusts considered - Minimum loan size must be £750,000. Maximum loan size of £1,000,000 applies when based in Gibraltar. Where the parent company ownership structure is incorporated in the Cayman and British Virgin Islands then these would not be accepted
Flats in blocks exceeding five floors are considered by exception only. Consideration is given for highly experienced clients and where the valuation report provides strong commentary on sale & rental demand as well as location.
AVM's possibly available for Small HMO's that are valued on single dwelling basis
Thatched roofs have been added to ‘Non-Standard Construction’ types
Cladded blocks are unacceptable without a satisfactory EWS1 form

Location

Will lend in England, Wales and Scotland

Type of Credit Search conducted at AIP stage

Hard foot print

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– Maximum 75% LTV for the overall portfolio

– A minimum rental stress of 100% at 8% (for individuals) & 7% (for Limited Companies)

Portfolio Landlord Criteria

– No limit on the amount of lending with Shawbrook Bank

– No limit on the size of portfolio with other lenders

Additional Document Requirements

– Portfolio Schedule – All cases

– Asset & Liability Statement – All cases

– Business Plan – Not required

– Cashflow Statement – Not required

*Lender will accept client versions so long as covers the lenders minimum requirements