After announcing planned rate reductions and new DSCR requirements last week, Shawbrook’s commercial mortgages team has confirmed that these changes are now live, with reduced rates of up to 0.96% on specialist buy-to-let products now available.
The lender has also simplified its proposition by introducing three loan-to-value tiers that are consistent across all specialist buy-to-let and commercial products.
Shawbrook has also revised the affordability criteria, in line with the Prudential Regulation Authority’s supervisory statement on buy-to-let, introducing separate coverage ratios for individual and corporate borrowers.
The PRA’s statement introduced tough new rules for buy-to-let aimed at making sure lenders do not relax underwriting standards to meet their growth plans.
Among the new rules was a minimum affordability stress test rate for borrowers - the amount they would need to be able to pay - of 5.5% for the first five years of the mortgage.
Karen Bennett, managing director of Shawbrook Commercial Mortgages, said: “A week on from announcing these rate reductions to our Broker Partners and the wider intermediary community, we are delighted that our partners’ clients are now able to access the new product range.
“The wider changes in affordability are quite involved and we were keen to provide early notice of the changes as they effect the Shawbrook proposition. Transparency for our brokers and their clients is something we take very seriously, which is why we have worked hard to provide as much clarity as we could on our criteria, recognising how important this is for intermediaries when considering the right outcome for the customer.”
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