Shawbrook announces new minimum personal guarantees

The specialist lender enhances flexibility to borrowers with an updated PG policy.

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Following the announcement earlier in the year of their new ‘Customer Appetite Statement’ – a pre-agreed loan exposure ceiling available to repeat customers - the Shawbrook Commercial Mortgages team has evolved their position on personal guarantees.

The new minimum personal guarantee is 25% of the loan amount, reducing the previous requirement to personally guarantee 100% of the loan. By assessing the risk profile of different transactions, more flexibility can be offered to landlords ensuring a fair deal between lender and borrower.

This enhanced flexibility is available across the Shawbrook non-refurbishment STL, specialist BTL (including large loans) and commercial investment product ranges.

Commenting on the new personal guarantee policy, Daryl Norkett, Head of Products & Markets for Shawbrook Commercial Mortgages:

“We are delighted to announce a new and fresh approach to personal guarantees. Whilst remaining an important part of the limited company lending package, demonstrating a borrower’s commitment to a loan, it has never been more timely to ensure a fair deal on security between lender and borrower, with a large majority of the Shawbrook Property Division’s borrowers now being limited companies. Building transparent and mutually beneficial partnerships with professional investors is in Shawbrook’s DNA and our new approach to personal guarantees builds on the success of our ‘Customer Appetite Statement’, which has enabled us to support the property funding journey.”