Shawbrook lowers commercial mortgage rates and eases DSCR tests

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Shawbrook has unveiled cuts of up to 0.70% across its range of 2, 3 and 5-year fixed commercial mortgage products, in a move designed to give brokers and their clients greater flexibility as demand in the commercial property market strengthens.

Alongside the rate reductions, the bank has lowered its minimum debt service cover ratio (DSCR) from 130% to 125% for both individual and limited company borrowers purchasing commercial property, as well as for companies investing in semi-commercial assets.

The easing of DSCR requirements is expected to broaden access to products, particularly at the shorter end of the fixed rate range.

Daryl Norkett (pictured), director real estate proposition at Shawbrook, said: “We are committed to supporting the commercial property market with products that meet the needs of brokers and their clients.

“The reductions to our fixed rates and DSCR requirements will help investors seize opportunities, with access to the right solutions at the right time.

“With more investors re-entering the market or diversifying their portfolios by adding higher yielding properties, we’re proud to continually enhance our proposition to support brokers and their professional property investor clients.”

The announcement follows a period of sustained resilience in the commercial property market, with Shawbrook positioning itself to meet growing investor appetite through lower pricing and more flexible affordability tests.

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