Shawbrook Bank

Mortgage Type

Specialist BTL/Commercial

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 for BTL
Commercial Loan minimum loan size is £150,000
£300,000 for Owner occupied/Trading Business unless commercial loan amount states otherwise. Check product guide to see if available.

Advance (max)

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

£300,000 minimum loan for owner occupied cases - Check product guide to see if available.

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

A minimum personal guarantee is 25% of the loan amount: -

• Non-refurbishment STL
• Specialist BTL (including large loans)
• Commercial investment product ranges.

Complex commercial investments considered: - Including: Serviced offices, vacant commercial property, multi-unit lets on licenses and medium term planning gain projects. 2 years experience required

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.


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.

Acceptable subject to:
Lease with a professional operator of emergency housing

Assumption of a standard AST with private rented sector tenants for affordability and viability of exit assessment (as opposed to lease rental income)

Property to be valued as a standard house or an HMO with no premium attributed to the lease

Private tenants in receipt of Housing Benefit or Universal Credit are also acceptable.

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

75% LTV, 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.
*****
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.
***
Ex-pat applications when the security is the client's previous residential property.

New Builds

All new builds considered.

Credit Score

No

Rental Calculation

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%

*******
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%

********
Higher Rate Tax Payer: –

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

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

********

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%

********
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%

********

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%
*********

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.

CCJs - No unsatisfied in the last 24 months
Satisfied in the last 12 months considered by exception
Large (>£5,000) historic considered by exception

Mortgage / Secured Loan / Tenancy Arrears 0 missed in last 12 months

Defaults No unsatisfied >£100 in last 24 months

Unsecured borrowing (not including communications suppliers or utility companies)
No more than 3 instances of arrears or arrangements to pay in last 12 months

Bankruptcy/CVA/IVA - Discharged for at least 12 months

CIFAS - No adverse fraud data

Business Credit Profile:-
No history of the following within the last 36 months (this extends to associated companies):

Receivership
Administration order
Winding up petition
Creditors or Compulsory Liquidation
Disqualified director

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.

Retail assets as acceptable security, but subject to underwriting.

Owner Occupied trading business considered - Nicknamed Opco/Propco. 2 years trading accounts required. 75% LTV
Interest only available
Check minimum loan amount!
£25mill max loan
The property value will be considered on a Vacant possession basis with reletting and resale demand within 12 months being required.

Shawbrook require, as a minimum, the provision of 12 months trading accounts to support the application. The applicant must have a minimum 2-year trading history.

70% LTV IO, 75% with 5% amortisation max 5 years

Individuals (UK and EU nationals residing in the UK)
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) and SASS's
Ex-pats
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.

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 more than a 25% shareholding.
For Complex Commercial loans a personal guarantee equal to 100% of the loan size will be required.

• Non-refurbishment STL
• Specialist BTL (including large loans)
• Commercial investment product ranges

Complex commercial investments considered: - Including: Serviced offices, vacant commercial property, multi-unit lets on licenses and medium term planning gain projects. 2 years experience required

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