The bank completed improvements to both its Application in Principle and Application Forms for brokers and have also clarifyed their position on interest-only DSCR repayment options.
Shawbrook will now be able to consider lending on a capital and repayment basis, where the debt services coverage ratio (DSCR) fits on an interest-only basis when a client is looking to leverage but wants to clear down their capital.
The challenger bank understands that, for most investors, gearing to the maximum LTV affordable allows them to take advantage of other opportunities, however it realises that investors focusing on longer gains are keen to reduce the capital to de-leverage their position.
In places where evidence has shown that a client’s income will cover the repayments of a 10-year interest-only period now Shawbrook can offer investors the chance to pay off some or all of their debt, subject to a credit search and documents showing financial stability.
Along with this the bank aims to make things easier for brokers by overhauling applications and making them more client-friendly.
Additionally, shave down the levels of paperwork for brokers Shawbrook will now merge the Application in Principle and Application Forms into one. This will be done by having one form divided into two sections with one part for brokers to complete and the other for clients to complete and sign.
If the broker decides to submit a full application with valuation they will have to complete both parts.
Sales and Marketing Director of Commercial Mortgages at Shawbrook Bank, Karen Bennett, said both these changes look to meet all their clients’ needs.
“By introducing the interest-only DSCR repayment option, we now provide investors with a way to leverage but reduce their capital at the same time,” she said.
As for the change in the broker application process she stated: “We know filling out applications forms can be a long and arduous task, so we’ve listened to our brokers’ feedback and made significant improvements.
“We now use just one form which is far more efficient and streamlined – we hope it’ll be an extra weight off the shoulders of our clients and broker partners.”
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