Shawbrook Bank has just rolled out a series of significant rate reductions. This change affects a broad spectrum of their financial products, catering to various aspects of property investment.

Here’s how these changes break down:

Buy-to-Let Gets More Attractive

• Complex Buy-to-Let: These are properties like multiple occupancy homes or those with non-standard construction. Shawbrook has cut rates by up to 0.55%, with the new rates starting from 5.69%. This is a significant drop, making it more financially feasible to invest in these complex properties.
• Digital Buy-to-Let: Focusing on the more straightforward rental properties, these rates have been reduced by up to 0.5%, starting now from 5.99%. This makes entering the rental market more accessible for new and seasoned investors alike.

Commercial Properties Also Benefit

• Semi-Commercial: These are properties used for both residential and business purposes, like shops with flats above. The rate cuts here are up to 0.35%, with new rates starting from 6.79%.
• Commercial: Purely business-use properties see rate reductions of up to 0.55%, with new rates beginning at 7.44%. This reduction can make a big difference for those investing in commercial real estate.

Bridging Loans – Short-Term Financing Made Cheaper

• Bridging Loans: Often used for quick purchases or to bridge a gap in financing, these short-term loans have seen a reduction of up to 0.1% per month, starting from 0.69%. This makes short-term borrowing more affordable and flexible.

Empowering Professional Investors

Daryl Norkett, the Director of Real Estate Proposition at Shawbrook, emphasises that these changes are a response to the evolving market conditions – “In response to the dynamic market conditions, we are pleased to announce a range of rate reductions, designed to empower professional investors with the tools they need to achieve their property ambitions in 2024”