Shawbrook enhances criteria for MUFBs, industrial properties and social housing

Shawbrook is rolling out a series of criteria changes designed to support both new entrants and seasoned investors in expanding their property portfolios.

Shawbrook has broadened its scope for multi-unit freehold blocks (MUFBs), now welcoming first-time landlords seeking MUFBs up to 6 units. This change adds to a suite of lending solutions supporting new market entrants on their journey to build a property portfolio starting with buy-to-let, HMO or MUFB properties.

The lender has further enhanced its commercial proposition by increasing their maximum LTV to 75% for industrial properties, offering loans available on interest-only, part-capital, or full capital repayment. This supports landlords in diversifying their portfolios with commercial properties, with rates starting from 7.39% at 75% LTV.

Recognising that SME landlords are meeting growing demand for social housing in the UK, Shawbrook has enhanced its proposition for lending on these types of properties. Shawbrook’s complex buy-to-let products are available on single let or HMO properties let to social housing or supported living operators.

Furthermore, Shawbrook has released new criteria that supports landlords choosing to acquire the shares of a property-owning company, as opposed to the individual properties themselves, with no minimum loan size.

The changes follow Shawbrook expanding its newly formed structured real estate team with the appointment of three new hires, designed to further support property investors who require commercial and buy-to-let loans over £5m and bridging loans over £2.5m.

Daryl Norkett, head of proposition at Shawbrook, commented: “These enhancements not only demonstrate our commitment to meeting the evolving needs of professional landlords but also acknowledge the market's adaptation to a higher interest rate environment. We've observed a significant rise in HMO demand, from 27% of our buy-to-let originations in 2022 and 2023, to 34% in 2024. Additionally, our research last year revealed that 37% of landlords seeking portfolio expansion were interested in commercial properties for diversification.

"By expanding our criteria, we are creating more opportunities for landlords to diversify and grow their portfolios, whether through higher-yielding residential assets, commercial properties, or social housing. Our goal is to offer innovative and flexible solutions that support our clients at every stage of their investment journey.”