Secured Loans On Buy To Let Properties From Shawbrook

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Today Shawbrook Bank, one of the leading and consistently most progressive secured loan lenders in the market, have announced that they will now lend secured loans on Buy to let properties. The main terms of these loans are:

• Rates from 9.95%
• LTVs up to 65%
• Max loan of up to £75,000
• Min term 3 years; max term 25 years
• Early Repayment Charges of 3% apply in the first five years; 1% thereafter
• Loans available for any purpose except the purchase of another property
• Residential investment properties only; no DSS or HMOs
• Available to employed and self-employed applicants
• England, Wales & Scotland only

There are some requirements of the borrower too though:

• Rental income must be at least 110% of the interest payments on the first and proposed second charge loans
• The applicants credit must be clean and this means
  • No Mortgage/Secured loan arrears in the last 3 years
  • Max 1 month unsecured arrears but it must now be up to date
  • Satisfied or unsatisfied Defaults or CCJs over 2 years and under £5,000 are ignored

Now, it may come as a surprise to learn that getting secured loans on Buy to Let properties is difficult but there are actually remarkably few lenders who will lend on BTLs. Up until now the options were restricted to either Masthaven, Blemain or, at the adverse end of the market, Spring Finance. However all their rates are above 10% with Masthaven at 11.75% traditionally being the best option. For this reason the fact that Shawbrook have lowered the rates to 9.95% and the fact that they bring their very pragmatic and deal-oriented approach to lending to the market is to be welcomed.

The one small disappointment though - and for give us if we sound churlish - is that the LTV is restricted to 65% but this will still provide welcome extra finance opportunities to many landlords looking to release capital from their properties. With loans up to £75,000 we expect the underwriters at Shawbrook to be busy.

At Choice Loans we can help you arrange your secured loan on a Buy to Let property (or, indeed, any secured loan) via our connections to the leading lenders in the UK, including, of course, Shawbrook bank. To learn what loan rate you might be eligible for either call us on 0845 1260350 or complete our Secured Loan inquiry form here and we will get in touch with you. Choice Loans are an independent broker. We charge no upfront fees and we will not conduct any credit checks on you without your expressed permission.

*** Update to this article Sept 18, 2013 --> Shawbrook have today enhanced the criteria of their loans such that the max LTV is now 70%, any adverse over 2 years old is ignored, minimum property valuation has been reduced to £110,000, the minimum risk score acceptable has been lowered and they will now accept up to 6 properties in a loan portfolio ***