Shawbrook Commercial Mortgages has reduced its minimal personal guarantee from 100% of the loan amount to 25%.
It’s available across its non-refurbishment short-term loans, specialist buy-to-lets, including large loans, and commercial investment product ranges.
Daryl Norkett, head of products and markets for Shawbrook Commercial Mortgages, said: “We are delighted to announce a new and fresh approach to personal guarantees.
“Whilst remaining an important part of the limited company lending package, demonstrating a borrower’s commitment to a loan, it has never been more timely to ensure a fair deal on security between lender and borrower, with a large majority of the Shawbrook property division’s borrowers now being limited companies.
“Building transparent and mutually beneficial partnerships with professional investors is in Shawbrook’s DNA and our new approach to personal guarantees builds on the success of our ‘Customer Appetite Statement’, which has enabled us to support the property funding journey.”
Shawbrook said by assessing the risk profile of different transactions, more flexibility can be offered to landlords, ensuring a fair deal between lender and borrower.