Shawbrook Bank is a UK-based specialist bank that was founded in 2011. It provides a range of banking products and services to SMEs, property professionals and consumers, including unregulated bridging loans.
Shawbrook has competitive rates, innovative products, and excellent customer service.
In this review, I will take a closer look at Shawbrook Bank, including its products, services, fees, and customer reviews. I will also discuss the bank’s financial stability and its overall reputation. In particular, I’ll be focussing on its bridging loan products.
Shawbrook Bank Bridging
Shawbrook offers a range of unregulated bridging loans from £50k to £25m for both residential and commercial needs.
Loans can be used to quickly secure property purchases, fund refurbishments, raise capital, or refinance existing loans.
Key features include:
- Bridging loans from £50k up to £25m, with up to 85% LTV available
- Rates start from 0.79% per month for terms up to 24 months
- No early repayment charges or minimum interest periods
- Interest can be rolled up or paid monthly
- Most property types accepted as security, including residential and commercial
- No minimum income requirements
- No experience is needed for light refurbishment works
- Quick access to funds with the entire loan available upfront
- Discount on fees for repeat Shawbrook customers
Overall, Shawbrook has a great reputation. There’s a fast, easy, and straightforward loan application process, and many note receiving funding within 24 hours of applying.
What are the Eligibility Criteria for a Shawbrook Bridging Loan?
Here’s the criteria to apply for a bridging loan with Shawbrook:
- Available for individuals, limited companies, LLPs, PLCs, trusts and SIPPs
- Applicants must be aged 21-80 years old
- No unsatisfied CCJs in the last 24 months
- No mortgage/secured loan/tenancy arrears in the last 12 months
- No unsatisfied defaults over £100 in the last 24 months
- Minimum 12 months since bankruptcy/IVA discharge
- Loans on residential property require no experience
- Loans on commercial property require 2 years of experience
- Personal guarantees are required from directors with >25% shareholding
- First legal charge on the property offered as security
- Property located in England, Wales or Scotland
- Freehold or leasehold property with 50+ years remaining term
- Light refurbishment works allowed, heavy by exception
- Exit strategy evidence needed to confirm repayment
Application Process for Shawbrook Bridging
Shawbrook aims to provide a streamlined application process for bridging loans. Brokers can get instant Heads of Terms (HoT) through the Broker Hub platform with just an application form and schedule of works for loans under £1.25M.
For loans above £1.25M, a portfolio schedule and client interview are also required.
Shawbrook then instructs valuers and solicitors to start work and issues a Formal Mortgage Offer (FMO), leading to completion and funds release.
The front-end process is designed to be quick and straightforward, with minimal documents needed upfront. More due diligence comes before formal approval for larger loans. Overall, Shawbrook looks to deliver efficient bridging finance through technology and selective requirements.
Here are the Shawbrook bridging loan rates for 2023.
|Loan Type||Rates From||Max. LTV||Exit Strategy Requirements||More Info|
|Bridging/Light Refurbishment||0.68%||85%||Details of proposed exit strategy and valuer confirmation of rental income or sales demand||More Info|
|Development Exit||0.68%||85%||Details of proposed exit strategy and evidence of sales/contracts exchanged||More Info|
|Heavy Refurbishment||0.78%||85%||Details of proposed exit strategy and valuer confirmation of rental income or sales demand||More Info|
|Lending for Refurbishment Costs||0.75%||85%||Details of proposed exit strategy and valuer confirmation of rental income or sales demand||More Info|
Shawbrook Reviews & Ratings
Overall, Shawbrook receives very positive reviews, earning an ‘Excellent’ TrustScore of 4.7 out of 5 based on over 9,000 reviews on Trustpilot.
The majority of reviews (83%) rate Shawbrook 5 stars. Customers praise the easy application process, fast funding, and friendly customer service. Many note getting loan approval and money in their account within 24 hours.
7% of reviews are 4 stars. 3% are 3 stars, 1% are 2 stars, and 7% are 1 star. The negative reviews mainly relate to unclear instructions from staff, delays in expected funding, disputes about lowering interest rates, and dissatisfaction with fraud claim handling.
However, negative reviews seem limited compared to the overwhelming positive feedback. Shawbrook proactively responds to many negative reviews to resolve issues.
In summary, Trustpilot reviews indicate high customer satisfaction with Shawbrook’s lending services, owing to fast processing, flexible terms, and helpful staff. While a minority of customers have faced challenges, the overall sentiment toward Shawbrook is very favourable.
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Shawbrook Bridging FAQ
What types of bridging loans does Shawbrook offer?
Shawbrook provides various bridging loans, including unregulated bridging finance for commercial investments and buy-to-let properties. They also offer short-term and refurbishment loans with a loan amount ranging from £50k to £25m.
What are the interest rates for Shawbrook’s bridging loans?
The interest rates for Shawbrook’s bridging loans start from 0.68 per month.
Are there any arrangement fees for transitioning from a Shawbrook bridging loan to a term product?
No, Shawbrook allows customers to switch to a term product with no arrangement fee.
What is the minimum personal guarantee required for a Shawbrook bridging loan?
The minimum personal guarantee required is 25% of the loan amount.
Can I find the terms and conditions and tariff of charges for Shawbrook’s bridging loans?
Yes, the terms and conditions and tariff of charges for Shawbrook property finance can be found on their customer documents on page5.