Shawbrook has enhanced its lending criteria to help landlords investing in serviced lodging.
Throughout 2024, Shawbrook’s inner information recorded a 14% improve in landlords investing in Multi-Unit Freehold Blocks (MUFBs), and the momentum on this house has carried into 2025.
To meet this demand, the lender is now providing lending on portfolios and bigger blocks of flats operated as serviced lodging.
Key criteria highlights embody:
Maximum mortgage quantities proceed to be primarily based on market lease below an assured shorthold tenancy (AST), as confirmed by valuation, with as much as 75% loan-to-value (LTV) accessible throughout their buy-to-let product vary.
For portfolios with 10 or fewer items, no further proof is required.
For portfolios exceeding 10 items, both two years’ accounts for established belongings or a cashflow forecast is required for new belongings to evaluate earnings generated on a nightly foundation.
Commenting on the adjustments, Shawbrook director of actual property propositions Daryl Norkett mentioned: “Throughout 2024, we noticed a big rise in landlords exploring investments in MUFBs, and this has continued into 2025 as extra landlords search to diversify their portfolios.”
