£40,000 

Minimum 1 Month.

Maximum 24 Months. 

Residential and Semi-Commercial Bridging: 75% of the Open Market Value

Commercial: 70% of vacant possession value

Lending for Costs: 85% of the Open Market Value in current condition or 75% of the post works value/GDV, whichever is lower

Higher value single dwelling residential properties also have the following LTV restrictions:

Property Value: To £2m

• Max LTV: 75%

Property Value: £2m - £3m

• Max LTV: 70%

Property Value: £3m - £5m

• Max LTV: 65%

Property Value: >£5m

• Max LTV: 60%

No minimum length since time of purchase.

Considered for any legal purpose.

Capital raises of more than £150,000 or when more than 50% equity is being removed that are not in keeping with profile should have a satisfactory explanation.

Ex-pats can be considered if funds are being used for a further purchase of a UK asset.

Acceptable where the bridge was used to complete works or auction purchase.
In other scenarios we will need to understand the reason bridging finance was used.

Can be considered up to 75% when we have seen sales or exchange of contract for properties within the site.

A reduction of 5%-10% will be made to LTV where immediate sale/exchange is not evidenced and is dependent on the strength of the exit presented.

Maximum loan available is calculated against the lower of the purchase price or valuation.

Subject to:

• Acceptable when the purchase price is within 20% of the market value and the seller is unrelated to our customer
• If the difference in market value and purchase price is over 20% then further investigation will be required
• If there is evidence of stressed position of the seller then we cannot proceed.

Family related transfers at nil or below market value are acceptable if supported by an explanation for the transaction and evidence that the family member is not in a distressed financial situation.

Transfers from associated Ltd companies at less than market value are not acceptable.

Purchases where there has been a substantial increase in value since purchase, we require a written explanation which should be referred to the valuer for comment and validation.

When there is evidence of an option to purchase agreement and we can understand the reason for the purchase price being less than the market valuer we can consider lending against the higher figure.

Source and Details

• Personal Savings
  Evidence of build-up of funds
  
  
• Gift
  Acceptable subject to evidence that the third party will hold no interest on the security
  
  
• Directors Loan
  Acceptable subject to transfer at full MV
  
  
• Additional Borrowing
  Details of the loan offer should be obtained for an assessment to be made on affordability
  
  
• Vendor Deposits and 2nd Charges
  Not acceptable
  
  
• Builders Incentives
  LTV reduced by 5%
  
  
• Bounce Back Loans
  Are an acceptable form of deposit with supporting evidence of funds within bank statements. These are subject to the loan being used for the benefit of the business.
  
  
• Mini-Bonds
  Not Acceptable

Evidence that the client has or will have available funds to cover the full cost or shortfall of works. Bank statements showing sufficient levels of funds are acceptable.

We can consider lending for costs on the light refurbishment of residential properties products which will involve a larger day one loan advance to support the funding of the build costs. The borrower will receive 100% of the net loan proceeds on day one - we will not consider post completion stage drawdowns. A schedule of works and costs will be required from the borrower and we will need the surveyor to comment positively on the suitability of the proposed works and costs.

Applicants (including beneficiaries and guarantors) must be a minimum of 21 years of age at the start of the mortgage and no older than 80 years of age at the start of the mortgage.

Applicants aged 70 years of age either at the start or during the term of the mortgage must have a clear succession plan in place to satisfy Shawbrook with the ongoing serviceability of the loan.

The applicant must apply for the loan before the date of their 81st birthday.

Applicants who are under 21 years at the start of the term or over 80 years at the end of the term are only acceptable if jointly borrowing with another applicant within policy age limitations above.

• Individuals (UK, EU and other foreign nationals residing in the UK, see ID section)
• LTD Company (UK Incorporated)
• PLC (UK Incorporated)
• LLP (UK Incorporated)
• Trusts (Minimum Loan size £1m new loans, Refinances case by case)
• SIPPS (Minimum Loan size £1m)

• Customers or occupiers over 70
• A customer who will not benefit from the proceeds of the advance.
• A customer who is on the mortgage application but not named on the title

Property Type: Residential (including small and large HMOs)

• No / Light works: No previous Investment experience
• Heavy Works: Experience of completing a similar scale project within the last 5 years
• Lending for Costs: No previous experience
  
  

Property Type: Semi Commercial 

• No / Light works: No previous Investment experience
• Heavy Works: Experience of completing a similar scale project within the last 5 years
• Lending for Costs: No previous experience

Property Type: Commercial

• No / Light works: Ownership of a commercial investment property for a minimum of two years or owned and managed at least 2 Investment properties for the last 2 years
• Heavy Works: Experience of completing a similar scale project within the last 5 years
• Lending for Costs: N/A

Buy-to-Let: At least 2 UK investments properties for a minimum of 12 months and at least 1 applicant to have a minimum income of £50,000.

Commercial: Ownership of a commercial investment property for a minimum of two years or owned and managed at least 2 investment properties for the last 2 years and at least 1 applicant to have a minimum income of £50,000.

Applications are acceptable from UK nationals residing in the UK and EU/EEA and other foreign nationals residing in the UK. Ex-pats (UK nationals living or working outside of the UK) are acceptable subject to expat experience. Applications from foreign nationals residing outside of the UK where there is no UK based joint applicant cannot be accepted.

Shawbrook uses an automated system for identity and address verification, if this fails or the applicant resides abroad, acceptable evidence will be required.

Customers may be required to provide certified signature ID.

CCJs
No unsatisfied in the last 24 months. Satisfied in the last 12 months considered by exception. Large (>£5,000) historic considered by exception.

Mortgage / Secured Loan / Tenancy Arrears

• 0 missed in the last 12 months
• No unpaid, historic arrears

Defaults
No unsatisfied >£100 in last 24 months

Unsecured borrowing (not including communications suppliers or utility companies)
No more than 3 instances of arrears or arrangements to pay in last 12 months

Bankruptcy/CVA/IVA
Discharged for at least 12 months

CIFAs
No adverse fraud data

Business Credit Profile
No history of the following within the last 36 months (this extends to associated companies within the same industry)

• Receivership
• Administration order
• Winding up petition
• Creditors or Compulsory Liquidation
• Disqualified director

Where interest is to be serviced or part serviced monthly, evidence that the customer can meet the monthly interest payments will be required. This can be in the form of a bank statements showing sufficient levels of outside income, portfolio income or savings.

Assessment that the current debt can be repaid at a rate of 6.5% to ensure exit.

For Portfolio Landlords the customers outside portfolio will be reviewed to assess long term affordability. A stress rate of 6.5% will be applied and the rental must cover a minimum of 125%. The overall gearing of the outside portfolio must not be over 75%.

Shawbrook will require 1st legal charge in all cases

England, Scotland, Wales

Freehold and Feuhold (in Scotland) acceptable.

Leasehold with minimum 50 years remaining at the end of the mortgage term

We only lend on properties with an A-E rating.

Where works are required to improve the EPC rating to an E or above and are being carried out during the term of the bridge we can proceed. If the EPC is F or below and no works are being carried the security is unacceptable.

Unless stated differently below by asset type 75% LTV Interest Only is permitted when letting is achievable within 0-3 months.

AST (Residential) letting demand is classified as follows -

Expected 0-3 months – 75% LTV Interest Only is permitted unless stated differently by asset type.

Moderate 3-6 months - For moderate cases UW to further consider the case and reduce LTV by 5% to 70% LTV.

Weak 6+ months – For weak cases UW to give further consideration and in most cases decline the deal

Defined as works that can be completed within 180 days (as confirmed by a valuer after reviewing the schedule of works).

Basic refurbishment works including, but not limited to:
Decorating, replacement/renewal of kitchens, bathrooms, fixtures & fittings, flooring, windows & doors.
Minor remedial/repair/improvement works (damp repairs, re-plastering etc.).

Refurbishments or HMO conversions with alterations to the building, sub-divide, maximise space or create additional facilities (kitchenettes, additional bathrooms & ensuite facilities).

Removal of walls, extensions & loft conversions.

Works must not require planning consent (simple planning windows etc considered by exception) or result in a change of use (C3 to C4 acceptable if works do not fall into heavy refurb).

Defined as works that will be completed in excess of 180 days (as confirmed by a valuer after reviewing the schedule of works).

Heavier schemes of works which require planning consent or entail a change of use of the property.

More significant repair works including, but not limited to: roof repairs & replacements, underpinning & other significant structural repair works as advised by a qualified structural engineer.

Applications that have an element of value with the benefit or planning or when enhanced planning is the exit strategy are considered by exception

Positive commentary on the marketability of the property as well as local market conditions must be confirmed by the valuer to ensure sale within the loan term is a reasonable repayment strategy.

An assessment will be made that the proposed market rental would support refinance onto a term loan application.

Flats located within blocks are acceptable subject to usual criteria.

Multiple flats/entire blocks of flats can be considered. Please refer to Valuation Methodology section.

Individual flats within cladded blocks or entire cladded blocks of flats are unacceptable without a satisfactory EWS1 form. Properties rated A1, A2 & B1 are acceptable.

Minimum size for flats is 30 square metres. When we are lending on blocks of flats, if the individual flats are less than 30 square metres, aggregated individual values cannot be used, only the investment block value can be used.

Acceptable up to 65% LTV in blocks up to 4 storeys subject to sales demand being achievable within 12 months.

Individual flats within cladded blocks or entire cladded blocks of flats are unacceptable without a satisfactory EWS1 form. Properties rated A1, A2 & B1 are acceptable.

Acceptable to 75% LTV subject to sales demand being achievable within 12 months.

Small HMO defined as those having up to max 6 occupants.

Large HMO defined as those having greater than 6 occupants.

Small HMOs used for student accommodation are acceptable in line with HMO criteria. Student units and sui Generis HMOs are considered on a case by case basis.

• Cladded blocks
• Freehold flats
• Holiday parks
• Land
• Development sites
• Hostels
• Equestrian centres
• Grade 1 Listed
• Grade A (Scotland)
• Kennels & Catteries
• Holiday lets in holiday / sports parks
• Part completed properties that are not wind and watertight
• Properties with contaminated land
• Adding floors or basement excavation
• Agricultural properties
• Active care homes
• Football clubs
• Gyms (purpose built)
• Golf clubs
• Hotels
• Retail units where exit remains a retail unit
• Shopping centres
• Places of worship
• Nightclubs

The above list is not exhaustive

When the valuation reports identify specialist reports that have not been mentioned in the planned works we cannot proceed until further commentary is received. Reports include:

• Structural Movement
• Dry Rot
• Wall Tie Failure
• Contamination
• Invasive Plants i.e. Japanese Knotweed

A Bank appointed valuation report addressed to the Bank from the pre-approved panel of surveyors with sufficient PI cover must be held or an Automated Valuation Model (AVM).

Valuations are valid for 6 months.

A residual method of valuation is likely to be applied by the Valuer for properties that have planning permission/change of use consent in place or where a property is due to undergo significant refurbishment works. Typical scenarios whereby a residual method of valuation would be used are as follows (the following list is not exhaustive):

• A commercial property with consent in place to be converted into residential accommodation.
• A single residential property with consent in place to be converted into multiple residential units.
• A single residential property currently in uninhabitable condition but due to undergo heavy refurbishment works.

For heavy refurbishment projects, we will be guided by the valuer as to whether a vacant possession or residual valuation is most appropriate.

The published maximum product LTVs will be considered for assets with good demand in their current use.

Where there is limited demand for the property in its current configuration lending will be subject to a maximum 60% LTV.

AVMs can be considered for security when the following standards are met:

• Purchases Only – No Auction Purchases
• England, Wales and Scotland
• Property sales particulars including photos from Marketing Agent showing the property is habitable in current condition
• Refinance when exit is sale subject to min CL +1
• When either no works or light refurbishment are being undertaken
• Rental to confirm viable rental income to support exit to term refinance
• Security shall be a single unit-residential property
• Maximum value £2m in London and the South East, £1m elsewhere
• Property must not adjoin or be located above commercial premises
• Freehold or leasehold with a minimum unexpired term of 85 years
• Security shall not be a flat in a converted building

• Flats in blocks where no cladding is indicated

• No new builds allowed – property must have been built at least 24 months ago

Max LTV: 75%

• Minimum Confidence Levels (value): >5.0

Max LTV: 65% - 74%

• Minimum Confidence Levels (value): 4.0 - 4.9

Max LTV: 55% - 64%

• Minimum Confidence Levels (value): 3.0 - 3.9

Max LTV: Up to 55%

• Minimum Confidence Levels (value): Min 3

LTV calculated against the corresponding CL i.e. 4.9CL = 74% LTV. When exit is sale CL level +1 is required.

The maximum amount considered is 15%.

2nd charges are acceptable on residential property up to 70% LTV (Taking into account the 1st charge balance) with a minimum of £25,000 equity being attributed to the 2nd charge property; Subject to maximum loan of 100% of the lower of the value or purchase price of the 1st charge security.

• The customer owns additional neighbouring property which shares the same access way, rights of support and services as the security property (this would be common in terraced housing or neighbouring parcels of land). These subsequent charges to be registered on the neighbouring properties/land do not need to be first ranking charges.
  
  
• We are offered long leasehold security and the customer or a related company/person owns the freehold. In these cases a charge over the freehold is also required.

Acceptable subject to valuer commentary and terms of the lease arrangement (when solar panels owned by third party).

Considered on a case by case basis subject to evidence of implementation of a professional treatment plan with insurance backed guarantee.

Shawbrook cannot consider applications that may be deemed as regulated transactions. These also include:

• The Customer intends to reside in the property taken as security and the residential element of the security (including associated land) forms more than 40% of the total floor area of the entire security (including land)
• Applications where our proposed customer or a relative of the customer resides or has resided at the security in the last 12 months
• Ex-pat applications when the security is their previous residential property
• Applications when the current vendor will occupy the security after completion, and this equates to more than 40%
• HMO accommodation where a family member or the customer resides
• Consumer BTL

• Any Prefabricated Reinforced Concrete (PRC) dwelling which has not been repaired under the PRC (Homes) Ltd licensed repair scheme is unacceptable
• Wimpey No-fines are acceptable, other no-fines systems are unacceptable
• Laing Easiform built after 1945 are acceptable
• Steel Framed Dwellings are acceptable if readily marketable and mortgageable
• Large Panel Systems (LPS) are unacceptable
• Timber Framed Dwellings built prior to 1970 are unacceptable, properties built after 1970 but without brick/rendered block external facings are considered on their individual merits
• Mundic properties are acceptable only if a Concrete Screening Test has been prepared strictly in accordance with the latest RICS Guidance and the concrete has been classified as A or A/B. Suspect concrete purpose-built and converted flats will not be considered acceptable, unless the entire block has been tested and the concrete classified as A or A/B

The following sustainable construction types are acceptable for buildings constructed 2010 or later:

• Structural Insulated Panels (SIPs)
• Insulated Concrete Formwork (ICF)
• ThermoPlan
• Kingspan TEK Haus
• Beco Wallform
• Cidark P3 System
• Durisol Block
• Rockwool Duo Slab
• Hemcrete/Hempcrete
• HufHaus

Suitable warranty documentation and architects sign off (including details of that architects PII) are required. Other modern/sustainable methods of construction can be considered on a case by case basis

• Single dwelling houses and flats only, multi-unit blocks of serviced apartments are not allowed
  
  
• Property must be in a location with a letting demand for an assumed 6-month AST, specialist holiday lets in remote locations where there is no long term tenant demand are unacceptable
  
  
• Assumed AST rental income will be used for affordability and viability of exit assessment

Acceptable subject to:

• Lease with a professional operator of emergency housing
• Lease that includes:
  
  • An open market rent with a standard rent review terms including rent review frequency.
  • A prohibition on structural alterations.
  • Standard landlord obligations.
    (Please note this list is non exhaustive and please refer to the broker hub for a fuller list of non-acceptable lease term issues.)
• Assumption of a standard AST with private rented sector tenants for affordability and viability of exit assessment (as opposed to lease rental income)
• Property to be valued as a standard house or an HMO with no premium attributed to the lease
• A Commercial Valuation 

Private tenants in receipt of Housing Benefit or Universal Credit are also acceptable.