Shawbrook review: commercial mortgages, development and business finance for UK firms

Shawbrook is a UK specialist bank that has built much of its business around property professionals and established, mid-sized companies. It is known for commercial mortgages, bridging and development finance, alongside structured business lending such as asset based lending and acquisition funding. Shawbrook is one of the lenders on our panel, and as an independent broker we can set its terms beside the rest of the market so you can see whether it is the right home for your deal. You can read more on Shawbrook's own website.

01About Shawbrook

Shawbrook was formed in 2011, when a vehicle backed by private equity bought the small Whiteaway Laidlaw Bank and rebuilt it as a specialist lender. It has grown into a sizeable bank with a large book of commercial real estate, small business and mortgage lending. It describes itself as a digital bank with no high street branches, and its head office is in the City of London.

Its lending is organised into two broad areas. Property Finance serves landlords, commercial investors and developers. Business Finance serves what Shawbrook calls the "critical middle": medium-sized UK companies that need funding for growth, refinancing, acquisitions, management buyouts or working capital. Shawbrook also offers business savings accounts, which helps fund its lending.

Smart Funding Solutions is an independent broker and is not part of Shawbrook.

02What Shawbrook funds

The figures below are the ranges Shawbrook publishes on its own product pages. They are a guide only: what you are offered depends on the property, the project and your track record.

Product	What it is for	Typical size	Typical term
Commercial mortgages	Buying, refinancing or releasing funds from offices, retail units, industrial units, semi-commercial and mixed-use property	£150,000 to £35 million	3 to 25 years
Bridging loans	Short-term purchases, auctions, light refurbishment and portfolio moves	£50,000 to £25 million	Up to 24 months
Development finance	Ground-up builds, conversions and refurbishments, including residential, commercial, mixed-use and specialist living schemes	£1 million to £30 million	Up to 36 months
Structured business finance	Asset based lending, acquisition and buyout funding, refinancing and working capital for established companies	Case by case	Case by case
Asset finance	Funding for equipment and vehicles in sectors such as construction	Case by case	Case by case

Commercial mortgages

Shawbrook's commercial mortgages are aimed at investors buying or refinancing let property, including multi-let and serviced offices. It lends to individuals, limited companies, LLPs, trusts and expats, offers interest-only options and can put several properties under one loan. Loan to value goes up to 75% on its published criteria.

Bridging and development finance

Its bridging loans are designed for speed and flexibility, with interest that can be rolled up or paid monthly and no minimum income requirement. Development finance is pitched at experienced developers, with funds released in stages as the build progresses so you only pay for what you have drawn. If you are planning a scheme, our guide to property development finance explains how staged drawdowns and exit plans work.

Business finance

On the business side, Shawbrook focuses on larger, more complex facilities. Its example deals include multi-million pound packages that combine asset based lending with a cashflow loan. It also has teams for healthcare, corporate leverage finance and specialty and fund finance.

03Who Shawbrook suits (and who it may not)

Shawbrook tends to suit:

• Property investors with let commercial or semi-commercial buildings, including portfolios held in companies or trusts.
• Experienced developers with a clear scheme, planning in place or close, and a sensible exit.
• Investors who need a fast bridge with a clear route out, such as a sale or a term mortgage.
• Established, mid-sized companies looking at acquisitions, buyouts, refinancing or facilities secured on receivables, stock and equipment.

It may not be the best fit if:

• You need a small commercial mortgage below its published minimum.
• You are a first-time developer with no track record, where a lender focused on newer developers may be more realistic.
• You want a small, fast unsecured loan. We compare unsecured needs across our wider panel instead.

The figures below are the ranges Shawbrook publishes on its own product pages.

04What Shawbrook looks at

Every case is assessed individually, but for property and structured lending you should typically expect to provide:

• Details of the property or scheme: location, use, tenancy schedule and leases, and a valuation.
• For development: planning consent, build costs, a programme of works, professional team details and evidence of your track record.
• Your assets and liabilities, and details of any existing borrowing on the portfolio.
• A clear exit strategy for bridging and development loans.
• For business finance: filed accounts, management accounts, forecasts and, for asset based lending, debtor and stock information.

Commercial mortgages and bridging loans are secured on property, and the property can be repossessed if repayments are not kept up. Take advice if you are unsure about what you are signing.

05Pros and cons

Pros

• Wide property range under one roof: bridge, build and hold.
• Large loan sizes, well suited to bigger portfolios and schemes.
• Flexible borrower types, including trusts, LLPs and expats.
• Development funds drawn in stages, so you are not paying for money you have not used.
• Experience with complex structured deals for mid-sized firms.

Cons

• Minimum loan sizes rule out many smaller deals.
• Development finance is aimed at experienced developers.
• Specialist lending is priced on risk, so a high street bank may be cheaper for a very clean case.
• Not designed for small unsecured business borrowing.

06Applying through a broker vs going direct

You can approach Shawbrook directly, and many borrowers do. The case for comparing first is simple: specialist property lenders differ widely in how they treat tenancies, borrower structures, loan to value and exit plans. A deal that is awkward for one lender can be routine for another.

When you come to us, we search the market across our panel of 300+ lenders, package your case properly and approach the lenders most likely to say yes on workable terms. You complete one set of paperwork rather than repeating it lender by lender. It is free to enquire; any broker fee is disclosed separately before you proceed. To see what is available, start with our Instant Quotes tool and compare lenders in minutes.

07Alternatives to Shawbrook

• Together: a property-backed lender that can suit borrowers with more complex circumstances or property types that mainstream lenders avoid.
• Paragon Bank: another specialist bank, worth comparing if you also need asset finance or invoice finance alongside property lending.
• Close Brothers: a strong option if your main need is funding equipment or vehicles rather than property.

If you are weighing up a short-term purchase, our page on business bridging loans sets out how bridges are structured and repaid.