It’s good news for landlords looking to expand their property empires! Shawbrook Bank has just loosened its lending criteria, making it easier than ever to get a mortgage for a range of properties, from multi-unit blocks to industrial spaces.

First-time landlords – Shawbrook is now offering mortgages on multi-unit freehold blocks (MUFBs) with up to 6 units. This is a great way to get your foot in the door and build your portfolio.

Industrial Properties Get a Boost

If you’re looking for a bit more diversification, Shawbrook has increased the maximum loan-to-value (LTV) to 75% for industrial properties. This means you can borrow more money, giving you more flexibility to invest. You can choose to pay off your loan on an interest-only, part-capital, or full capital repayment basis, with rates starting at a competitive 7.39%.

Social Housing Made Easier

Shawbrook is also making it easier than ever to get a mortgage on properties let to social housing or supported living operators. This is a good option for landlords who want to generate reliable rental income and make a positive impact in the community.

Why the Changes?

So, why is Shawbrook making these changes? They are responding to the changing needs of landlords in a market where interest rates are on the rise.

As Daryl Norkett, head of proposition at Shawbrook, explained, “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.”

Investing in Companies

And Shawbrook is now offering mortgages to landlords who want to acquire the shares of a property-owning company, rather than buying individual properties. There’s no minimum loan size, so you can get started with whatever suits your budget.