Shawbrook has enhanced its bridging finance proposition with a range of product and underwriting changes designed to give brokers and their clients greater flexibility and a simpler application process.
The changes include up to 90% day-one LTV on lending for refurbishment costs, reduced pricing across selected bridging products and several underwriting enhancements aimed at simplifying the process for brokers and their clients.
The threshold on smaller loan products has been reduced from £150,000 to £100,000. As a result, loans between £100,000 and £150,000 will see rate reductions of up to 0.20% per month. Loans above £150,000 will also benefit from reduced pricing, with rates now starting from 0.69% per month.
Alongside the pricing and LTV changes, Shawbrook has simplified several underwriting requirements:
- CLS title insurance is now available on lending for refurbishment costs facilities
- Commercial bridging no longer requires previous experience, subject to a satisfactory exit strategy
- Heavy refurbishment experience criteria have been relaxed, allowing underwriters to support customers moving into larger projects
The bank has also removed several underwriting requirements, cutting the number of documents brokers need to provide. This builds on Shawbrook's recently launched automated AVM bridging proposition, which offers up to 75% LTV on individual houses and flats, subject to criteria.
"We know brokers value speed, flexibility and certainty when placing bridging cases," said Daryl Norkett, director of real estate proposition at Shawbrook (pictured).
"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."
