Shawbrook has enhanced its bridging proposition with higher loan-to-value limits, reduced pricing and a series of underwriting changes designed to simplify the application process for brokers and property investors.
The lender has increased maximum day-one LTV on its Lending for Refurbishment Costs (LFC) product to 90%, providing greater leverage for borrowers undertaking light refurbishment projects.
Alongside the LTV increase, Shawbrook has reduced pricing across selected bridging products. The threshold for its smaller loan range has been lowered from £150,000 to £100,000, delivering rate reductions of up to 0.20% per month on loans between £100,000 and £150,000. For larger loans, pricing now starts from 0.69% per month.
MORE COMPETITION
The changes come as competition across the bridging sector intensifies, with lenders increasingly focusing on leverage, speed and underwriting flexibility to support brokers working with more complex cases.
For developers and investors, the ability to secure higher day-one leverage can help reduce upfront capital requirements, particularly on refurbishment-led projects where significant expenditure is often required before value can be realised.
Shawbrook has also relaxed several underwriting criteria, including making CLS title insurance available on LFC facilities, removing previous experience requirements for commercial bridging cases where a satisfactory exit strategy exists, and broadening eligibility for heavier refurbishment projects.
The lender said the enhancements build on its recently launched automated valuation model proposition, which offers up to 75% LTV on qualifying houses and flats.
SPEED, FLEXIBILITY AND CERTAINTY
Daryl Norkett (main picture), director of real estate roposition at Shawbrook, says: “We know brokers value speed, flexibility and certainty when placing bridging cases.
“These enhancements are designed to make it easier to access funding across a wider range of scenarios, while supporting brokers with a more streamlined application process.
“We are particularly pleased to be extending the maximum LTV on our Lending for Refurbishment Costs product to 90% LTV.
“Having been pioneers in bringing this light refurbishment funding solution to market back in 2018, we’ve seen first-hand the success of this property strategy for so many investors.
“We know any light refurbishment project requires significant upfront cash to undertake and we can now provide greater support towards funding overall project costs.”
