Mortgages  

Shawbrook updates residential mortgage range

Shawbrook updates residential mortgage range

Shawbrook Bank’s commercial mortgages division has updated its residential investment product suite, along with a new product to complement the existing range.

The revisions are designed to help lenders cater for a wider client profile, bringing further clarity to the market for broker partners.

The new product, named RI0, is designed for simple residential properties intended for private letting, which do not require any works. It is priced at 3.79 per cent on loan-to-values up to 60 per cent and 4.10 per cent at 75 per cent LTV, both with reduced legal fees.

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Shawbrook has also refined its existing RI1 specialist residential product to cover multi-units, leasehold flats, newly built or newly converted flats, flats above commercial, residential property let to the council or housing association and properties requiring minor works prior to being let out.

This product has updated rates at 4.40 per cent on LTVs up to 60 per cent and 4.70 per cent at 75 per cent LTV.

Meanwhile, on the RI2 – for houses in multiple occupation and student lets – pricing is now at 4.50 per cent on LTVs up to 50 per cent and 4.85 per cent at 75 per cent LTV. Finally, the RI3 product for portfolios is priced at 4.40 per cent on LTVs up to 60 per cent and 4.70 per cent at 75 per cent LTV.

Further to these changes, the bank has adjusted its pricing to provide a simpler and more tailored approach for expat business – a sector that has seen strong growth for Shawbrook over the past 18 months. A simple price loading has been incorporated with +0.25 per cent for expat business on the new RI0 residential product, and +0.10 per cent for RI1/2/3 within the relevant LTV banding.

Karen Bennett, sales and marketing director for commercial mortgages, Shawbrook Bank, commented: “We are aware that ours is an ever-changing industry and we’re always looking to improve to support our broker partners and allow customers to benefit from healthy competition.”

peter.walker@ft.com