Shawbrook Bank has completed a deal on a property made using non-standard materials, after other lenders declined to deal with the case.

The lender was approached by broker partner Trafalgar Square Financial Planning consultants in 2020, on behalf of an experienced client who was seeking a buy-to-let loan for their newly built, two-bed detached bungalow built from Structural Insulated Panels (SIPs).

SIPS are panels consisting of an insulating foam core between two structural facings.

Having approached two lenders previously and being turned down for the buy-to-let loan, Trafalgar Square reached out to Shawbrook to secure the loan. Trafalgar Square has been a broker partner on Shawbrook’s panel since 2013.

While this non-standard construction type fell outside of Shawbrook’s criteria, the individual merits of the case and the property’s marketability were both taken into account, the lender said. The new-build property is located in a desirable commuter village, is modern throughout and deemed as “highly energy-efficient” by the valuer.

Shawbrook offered the customer a £210,000 loan on an 11-year term, interest-only on a five-year fixed rate at 50% LTV.

The bank has since updated its lending criteria to include SIPs and other modern and more sustainable construction types, making their appetite in this space very clear.

Juspal Nagra from Trafalgar Square Financial Planning Consultants, said: “I had previously submitted applications to two other lenders who advised they could consider a Structural Insulated Panels (SIPS) construction property only to be declined due to valuer’s comments.

“I then approached the tam at Shawbrook who took a common-sense view on the construction type, client’s circumstances (bearing in mind one of the clients was aged 69), and background portfolio experience to enable the refinance of this new build project to complete.

“My clients were absolutely over the moon and for myself as a broker it’s great to have a lender who will think outside the box.”

Gavin Seaholme, head of sales at Shawbrook Bank, added:  “A case of this kind demonstrates Shawbrook’s specialist approach to lending and consideration of the bigger picture. While this property, made using non-standard materials, technically fell outside of Shawbrook’s lending guidelines, we could see the clear opportunity. As a result, we adapted our criteria to clarify our appetite for ‘greener’ construction methods.”