The commercial mortgages division at Shawbrook Bank has made changes to its residential investment product range.
It has also introduced a new deal for ‘simple’ buy-to-lets.
The new product, named RI0, is designed for simple residential properties intended for private letting, which do not require any works. The product is priced at 3.79% on LTVs up to 60% and 4.10% at 75% LTV, with reduced legal fees, and is aimed at investors with available deposits and whose rental income services their debt.
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.
The rate cuts range from 0.05 to 0.15 percentage points depending on LTV.
Shawbrook’s residential investment range and rates are now as follows:
- RI0 – NEW simple residentialpriced at 3.79% on LTVs up to 60% and 4.10% at 75% LTV
- RI1 – for specialist residential priced at 4.40%on LTVs up to 60% and 4.70% at 75% LTV
- RI2 – for HMOs and student letspriced at 4.50% on LTVs up to 50% and 4.85% at 75% LTV
- RI3 – for portfolios priced at 4.40%on LTVs up to 60% and 4.70% at 75% LTV
In addition, a simple price loading has been incorporated with +0.25 percentage points for expat business on the new RI0 simple residential product, and +0.10 percentage points for RI1/2/3 within the relevant LTV banding.
Karen Bennett, sales and marketing director of commercial mortgages at Shawbrook Bank, said: “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.
“A commitment to providing clarity across our credit appetite was one of the driving reasons for the new product, and we are confident that the rate reductions will ensure the range remains highly competitive. We are very excited about the new RI0 product, which we hope will prove valuable to investors looking for simple residential investment property.
“We look forward to the impact this will have on market growth.”