Shawbrook reduces rates on commercial and BTL products

Shawbrook reduces rates on commercial and BTL products

Shawbrook’s commercial mortgages team has introduced reduced rates of up to 1.06 per cent on commercial products and up to 0.96 per cent on specialist buy-to-let products.

The lender has also simplified its proposition by introducing three loan-to-value tiers that are consistent across all specialist buy-to-let and commercial products.

This new pricing is available as of Monday 19 December.

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Karen Bennett, managing director of Shawbrook Commercial Mortgages, said: “We are always looking for innovative ways to enhance our products and the service we provide to our brokers and their clients.

“The extensive price reductions soon to be live across our specialist buy-to-let and commercial product sets are a practical example of this dedication to good customer outcomes, and part of the latest in a long line of improvements we have made in 2016. 

“We are confident that these rate reductions provide a timely boost to brokers and their clients and, whilst the BTL market faces headwinds in 2017, we look forward to continuing to support our partners with a considered and sustainable lending approach.”

Meanwhile Shawbrook has also revised the affordability criteria, in line with the Prudential Regulation Authority’s supervisory statement on buy-to-let, introducing separate coverage ratios for individual and corporate borrowers.

The PRA’s statement introduced tough new rules for buy-to-let aimed at making sure lenders do not relax underwriting standards to meet their growth plans.

Among the new rules was a minimum affordability stress test rate for borrowers - the outside amount they would need to be able to pay - of 5.5 per cent for the first five years of the mortgage.

Shawbrook’s panel of broker partners will be able to submit applications under the existing criteria until Friday 16 December.