The Intermediary – April 2025 - Flipbook - Page 45
T H E I N T E RV I E W
Shawbrook
This emphasis on collaboration and mutual
growth ensures that brokers, and in turn their
clients, are equipped to succeed in a constantly
evolving property landscape.
In light of shifting interest rates and market
complexity, Shawbrook also sees brokers as
indispensable guides for landlords navigating
their finance options.
Cox says: “Some banks do a great job
working direct, and they’ve got the resources
to be able to ensure that customers still get
good products and offerings, but to really get
the optimal offering, you have to work with a
broker that’s confident in knowing the market.”
New developments
Cox maintains a cautiously optimistic outlook
for the private rented sector (PRS), despite
ongoing economic volatility and regulatory
shifts. The landscape for landlords is constantly
evolving, with new legislation around tenants’
rights and EPC requirements shaping how
landlords operate.
Cox says: “When I look across our community
of investors, those that do better are those that
are ahead of those changes, and adapting their
business model so that actually this is not a big
shock to them.”
Shawbrook encourages landlords to
anticipate changes and build regulatory
readiness into their long-term strategies. While
some see these challenges as signalling the
decline of the PRS, Shawbrook believes the
sector is simply evolving.
“Whenever there’s a challenge, it always
creates an opportunity,” Cox explains.
She adds: “The one thing that I can speak
to over the years is the resiliency of those
professional landlords.”
Indeed, those with robust business models,
the right lending partners, and a commitment
to quality housing, are well placed to thrive.
Cox notes: “It is right that there is a
professionalisation of the landlord space. It
is right that some of it is regulated. And it is
right that it’s considered to be an important
structure of our community. It’s fundamental,
in fact.”
Shawbrook views the ongoing regulatory
momentum not as a threat, but as a driver
for evolution and a higher standard across
the market. As long as the UK continues to
face a housing shortage, the PRS, operated
by experienced and responsible landlords,
will remain an essential part of the national
housing strategy.
In terms of Shawbrook’s own direction, the
bank is doubling down on its digital innovation.
Cox says: “Something to look out for from us
is that there will be that continual progression
and investment in using data and technology to
really drive efficient and frictionless journeys
for brokers and customers.
“Every two weeks we’re making small but
incremental changes to the way that we
process applications to try and take that
friction out. That’s the continuum.”
In this vein, a recent development was
the launch of the lender’s structured real
estate team, catering to customers with more
complex, high-value needs.
Cox says: “This was about trying to attract
those customers that have more complex
needs. It’s about following that thread. We’ve
got the proposition bit, but we now also have a
very specialist dedicated team that can handle
those £10m-plus type transactions.
“We don’t necessarily apply the standard
pricing or standard approach, we literally put
the deal together based on the borrower need,
the asset types that tend to be a little bit more
exotic, and then we come up with a whole
package that may look and feel quite different
to the standard buy-to-let.”
Already, the team has seen success with
bespoke transactions in the £15m to £30m
range, and feedback has been positive.
Cox notes: “We’ve had a number of larger
transactions […] and we launched that last
year, so it’s made quite a big impact already.
“The feedback that we’ve had from our
brokers is that they really think it’s a great
addition to what we do. Again, it’s all part of
that evolution.”
Further down the line, Shawbrook is
exploring a return to the commercial trading
space, specifically property-backed, owneroccupied businesses, after stepping back
during Covid-19. It is also rethinking borrower
profiles, moving beyond the traditional lens of
asset value and landlord experience to consider
the individual behind the investment.
Cox says: “We’re exploring how we can better
serve some of the customers that we see today
that may look and feel slightly different to the
type of borrowers that would have seen five
years ago.
“They might have more complex needs
in terms of their financial background, for
example – we’re trying to take it down a level
from just looking at the asset […] to question,
what about the actual investor themselves?”
This reflects Shawbrook’s overall approach
to lending. As Cox concludes: “No two years
look the same. No two months look the same.
There’s always something new we’re doing.” ●
April 2025 | The Intermediary
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