EXCLUSIVE: Shawbrook Bank adapts criteria to fit modern construction methods

Specialist lender Shawbrook Bank has made a commitment to modern methods of construction, funding a property built from non-standard materials and adapting its criteria in the process.


Shawbrook Bank was approached by broker partner Trafalgar Square Financial Planning consultants on behalf of an experienced client seeking a buy-to-let (BTL) loan for their newly built, two-bed detached bungalow built from structural insulated panels (SIPs), which consist of an insulating foam core between two structural facings.

The client had been turned down by two lenders previously.

Whilst this non-standard construction type fell outside of its criteria, the bank stated that the individual merits of the case and the property’s marketability should be taken into account. This includes its location and energy efficiency.

Shawbrook offered the customer a £210,000 loan on an 11-year term, interest only on a 5-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.

Juspal Nagra of 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 team 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, said:  “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.”

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