Shawbrook has cut the minimum personal guarantee it requires from borrowers on some of its commercial mortgage loans to 25 per cent.
This is a reduction on the previous requirement to personally guarantee 100 per cent of the loan.
This enhanced flexibility is available across the Shawbrook non-refurbishment short-term lending, specialist buy to let (including large loans) and commercial investment product ranges.
It noted that by assessing the risk profile of different transactions, more flexibility can be offered to landlords ensuring a fair deal between lender and borrower.
Large majority limited companies
Shawbrook Commercial Mortgages head of products and markets Daryl Norkett said a personal guarantee remained an important part of the limited company lending package as it demonstrated a borrower’s commitment to a loan.
However he added that with a large majority of the Shawbrook property division’s borrowers now being limited companies it had “never been more timely to ensure a fair deal on security between lender and borrower”.
He added that the new approach to personal guarantees “builds on the success of our Customer Appetite Statement, which has enabled us to support the property funding journey.”
Owain Thomas is features and contributing editor of Mortgage Solutions and editor of Specialist Lending Solutions.
He also has experience in the protection, pensions, workplace benefits and HR areas.
Owain has won two Headline Money Awards and the Protection Review’s Journalist of the Year award.