Shawbrook, HSBC Reduce Mortgage Rates, Ease Commercial Lending Criteria UK

Shawbrook has reduced its commercial mortgage rates by up to 0.70% on two-, three-, and five-year fixed terms and lowered the minimum debt service cover ratio (DSCR) from 130% to 125% for individual and limited company borrowers, aiming to improve broker access to a wider range of products, especially on shorter-term fixed rates. This move is intended to support the resilient and growing commercial property market by enabling investors to seize opportunities more easily. Shawbrook's director of real estate proposition, Daryl Norkett, emphasized the bank's commitment to meeting broker and client needs and supporting investors diversifying their portfolios with higher-yielding properties. Meanwhile, Aldermore has launched new buy-to-let (BTL) limited edition products for landlords and reduced rates across its owner-occupier range, including two-year fixed rates at competitive loan-to-value ratios with no fees. These lender actions come amid an environment where mortgage rates have slightly eased but remain influenced by Bank of England interest rate decisions and inflation data, impacting affordability for homebuyers and investors. Overall, lenders are adjusting products and rates to balance market challenges while fostering access and flexibility for borrowers in both commercial and residential sectors.