"Every transaction in this sector is different, and the financing requirements are often more nuanced than in traditional property lending."
- Daryl Norkett - Shawbrook
Shawbrook has announced the launch of a new dedicated purpose-built student accommodation (PBSA) proposition, in a bid to respond to growing broker and investor demand for specialist finance in the sector.
The bank has already completed a number of PBSA transactions and is now offering dedicated pricing and criteria for experienced landlords operating in the sector.
The launch comes amid continued investor appetite for high-quality student accommodation, driven by local demand, changing student expectations, and the need to modernise supply across key UK university cities.
The proposition includes loans from £500k to £35m, with rates starting from 5.99%, up to 75% LTV on interest-only facilities and terms of up to 25 years. Larger transactions above £2.5m will be supported by Shawbrook’s Structured Real Estate team.
"We've seen increasing demand from brokers and professional investors financing PBSA assets - particularly where borrowers need a lender that genuinely understands how these deals work," Daryl Norkett, director of real estate proposition at Shawbrook, said.
"Every transaction in this sector is different, and the financing requirements are often more nuanced than in traditional property lending. A dedicated proposition means we can give brokers and their clients the certainty and expertise they need from the outset."
