Shawbrook has made changes to its commercial investment criteria to support professional property investors looking to diversify and expand.
Shawbrook has raised the maximum loan to value (LTV) available on certain asset classes.
For retail units, this has been increased to 70% for interest-only loans and 75% for loans with partial or full capital repayment. For healthcare and education assets such as GP surgeries and veterinary clinics, it will lend up to 75% on interest-only, partial or full capital repayment loans.
For industrial units, Shawbrook will continue to lend up to 75% LTV, a change that was introduced earlier this year.
Additionally, the lender will now lend to first-time landlords for semi-commercial properties.
It said this “strategic move” would support new entrants to the market and allow them to establish property businesses with stronger cash-flowing assets.
An intermediary’s guide to understanding client vulnerability
Sponsored by Halifax Intermediaries
Shawbrook will lend up to £750,000 to first-time landlords on semi-commercial loans on assets with up to two commercial units and six residential units. This will build on last year’s change, which saw the lender open up to first-time landlords investing in smaller houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs).
Daryl Norkett, director of real estate proposition at Shawbrook, said: “We’ve seen a notable rise in investor interest in commercial assets this year, which reflects renewed confidence among landlords in the commercial market, as they look to actively expand and diversify their portfolios.
“Our latest enhancements underscore our commitment to supporting professional property investors in the commercial and semi-commercial markets, helping them seize growth opportunities and strengthen their portfolios.”
