October 23, 2025

Lender Comparisons

OakNorth vs Shawbrook: Compare Loans & Mortgages

Compare OakNorth and Shawbrook for best mortgage and loan options. Discover which lender suits your needs better with this quick guide.

Jesse Spence

Finance content writer / Market researcher

This guide helps UK SMEs compare OakNorth and Shawbrook. We look at products, pricing, speed, and service. It suits owners planning investment, a refinance, or a property deal. We focus on what each bank does well and where they differ. First mentions link to their official pages: OakNorth business lending and Shawbrook business lending.

TL;DR

OakNorth suits larger, bespoke deals and complex property or acquisition finance from around £1m.
Shawbrook covers a broader retail-style product set, including unsecured business loans and asset-based facilities, with options from c. £25k to £50m in certain lines.
Headline pricing varies by risk and security; Shawbrook publishes more guide ranges at product level, while OakNorth prices bespoke.
For speed on straightforward assets, Shawbrook’s product portals help. For tailored structures or club deals, OakNorth’s deal teams take the lead.
Property investors will find both active, but sizing and structuring differ. Choose based on loan size, leverage, and the collateral available.

Products and Terms at a Glance

OakNorth overview, loan sizes, fees, repayment style, terms, eligibility

OakNorth is a UK bank focused on lending to established, growing SMEs and mid-market firms. It provides bespoke debt for trading businesses and property projects. Public guides show facilities such as term loans and revolving credit loans, with business loans generally starting from about £1 million and rising to multiple tens of millions for the right case. OakNorth’s property pages also reference commercial mortgage lending from around £250,000 for specific scenarios. Repayment profiles are tailored. Options include amortising term debt, interest only periods, and bullet repayments on some property facilities. Pricing is bespoke to risk, sector, leverage, security, and sponsor strength. Eligibility centres on robust cash flow, credible management, and clear use of funds with security where appropriate.

Sources: OakNorth business loans and product guides.

Pros of OakNorth

Bespoke structuring for complex growth, M&A, and property deals.
Capacity to fund larger tickets compared with many fintech lenders.
Flexible terms, including term loans with tailored amortisation and RCFs.
Sector-savvy teams used to supporting entrepreneurs and PE-backed firms.
Active in commercial real estate and development niches.

Cons of OakNorth

Entry point typically £1m+, so not ideal for small working capital needs.
No instant rate cards; pricing is fully underwritten and bespoke.
Documentation and diligence can be heavier than a simple brokered unsecured business loan.

Shawbrook overview, loan sizes, fees, repayment style, terms, eligibility

Shawbrook is a specialist UK bank serving SMEs and property professionals. It offers a wide range of products, including asset finance, unsecured business loans, equipment finance, working capital loans, and commercial mortgages. Asset Based Lending facilities run from about £5m to £50m, with multiple collateral classes and long amortisation on property. Shawbrook’s Professions Finance indicates loan sizes from around £25k up to £2m for certain firms. Repayments are usually amortising monthly, though interest only and balloons may appear on property-led deals. Eligibility varies by product but includes trading history, affordability, and security coverage where required.

Sources: Shawbrook business lending pages, Asset Based Lending, Professions Finance.

Pros of Shawbrook

Broad menu across unsecured, asset-backed, and property finance.
Defined product paths and broker portals for faster processing.
ABL headroom for event-driven growth and refinancing from £5m to £50m.
Options for smaller professional firms from around £25k.
Clear outlines of use cases, including acquisitions and capex.

Cons of Shawbrook

For very large bespoke corporate-style deals, final leverage or covenant flexibility may be lower than a pure bespoke club facility.
Multiple product lines mean eligibility can vary a lot by segment.
Some products still expect strong security, which may not suit asset-light businesses.

Costs and Repayments in Practice

Both banks price to risk. OakNorth prices bespoke. Shawbrook publishes more indicative ranges at product level. Neither lender is a low-document, instant-quote platform for SMEs. Expect a full underwrite for material amounts, with pricing flexing by LTV or leverage, sector risk, DSCR, and security type.

For unsecured and small ticket lending, Shawbrook typically sets fixed monthly repayments over 1 to 6 years, with arrangement fees. For secured property and ABL, margins sit over base. Monitoring fees, valuation costs, and legal fees may apply. OakNorth follows a similar playbook on costs for bespoke loans. Arrangement fees are common. Property transactions may include valuation and legals. Revolving credit facilities accrue interest on drawn balances, with commitment fees on undrawn lines in some cases.

Feature	OakNorth	Shawbrook
Typical loan sizes	~£1m to tens of millions; some property pages from ~£250k	Unsecured from c. £25k; ABL £5m to £50m; wide range across asset and property
Common products	Term loans, RCFs, commercial mortgages, development finance	asset finance, unsecured loans, ABL, commercial mortgages
Repayment style	Amortising or interest only, bespoke to case	Amortising monthly common; interest only for property in some cases
Indicative fees	Arrangement and legal fees; valuations for property	Arrangement, monitoring, legal, valuation where applicable
Decision approach	Relationship-led, underwriting by specialist teams	Product-led journeys with broker portals plus specialist underwriting

Worked example: OakNorth term loan
Assume a £2,000,000 term loan over 5 years at a margin and fees that produce a representative APR of 10.9% for a trading business with strong cash flow and security. Monthly repayment is about £43,400. Total repayable is about £2,604,000. The business plans a plant upgrade and expects EBITDA uplift of £900,000 over the period, leaving comfortable cover. This is illustrative only. Pricing is bespoke and will vary.

Worked example: Shawbrook unsecured business loan
Assume £250,000 over 4 years with a representative fixed rate and fees that result in an APR of 12.9%. Monthly repayment is about £6,650. Total repayable is about £319,200. This suits a professional practice investing in software and hires. Security is not taken over specific kit. A director guarantee may be requested.

Illustrations use realistic SME figures. Your actual rate and terms will differ after underwriting.

OakNorth vs Shawbrook: a quick, visual lender comparison for UK SMEs

This dashboard turns the guide into numbers you can scan. Each tab shows one factor with ranges where lenders publish bands and a single “typical” point where examples exist. Read bars as min–max, and the dot as a representative case. Use it to judge fit by rate, amount, term, speed, fees, and digital service. Figures are indicative from the guide’s examples and product scopes; where no public range exists, we set cautious working bands so you can compare like for like today.

The bars show the possible rate band by lender; the dot marks a typical case from the guide. Pricing flexes by credit quality, sector risk, security, leverage, and term. A 1% rate gap on £100,000 over 5 years changes the monthly by about and total interest by about . Favour a lower typical if your case is plain and well‑rated; the wider range matters if your file is complex or levered and could price at the edges. Gather bank statements and management accounts early to reduce risk premia.

The bars map minimum to maximum facility sizes. OakNorth’s lower bound reflects select property cases (~£250k), with bespoke debt often £1m+. Shawbrook spans from c. £25k (unsecured/professions) to £50m in ABL. Use cases: lower bands fit fit‑out, stock, and software; upper bands suit capex, M&A, and portfolio deals. Larger fixed facilities may be available where collateral and cash flow support it. Remember, affordability and security set your usable ceiling, not just the headline max—check forecasts and covenants first.

The bars show term ranges in years. Longer terms cut monthly cost but raise total interest paid. At £50,000, 3 years versus 6 years changes the monthly to about vs and adds roughly of extra interest over the longer path. Longer terms suit seasonal cash flow or growth plans; shorter terms suit quick payback projects. Ask about early settlement rules before you commit.

Each pair of bars reads as application‑to‑decision and decision‑to‑funds (mid‑points shown); the line marks the fastest clean‑file path. Delays come from document checks, bank statements, valuations, legal work, and any security perfection. If payroll is due in 5 days, lender B’s faster path is safer. Fast paths assume complete packs and quick signatures; start KYC and data sharing on day one to stay inside the shorter band.

Bars include application fees and late fees where relevant; they exclude legal, valuation, and monitoring costs often charged on secured deals. Impact example: a £150 fee on a £20,000 loan adds 0.75% to day‑one cost. Compare total cost: rate, fees, and term together. Ask for a fee sheet and confirm how late fees apply and when. Check whether third‑party costs are pass‑through and payable even if a deal aborts.

Arrangement fees are calculated on the principal. Some products deduct them upfront; others add to the balance. Worked example: 1.5% on £250,000 equals £3,750. A lower rate with a higher fee can still be cheaper over long terms—run the numbers for your horizon. Ask whether fees are refundable if limits are undrawn, and how they work on RCFs.

Scores: booleans count as 1, integrations are counted, and UX is on a 1–5 scale. Open banking speeds underwriting; API support helps multi‑account firms; mobile apps support on‑the‑go approvals and checks. Busy owners and multi‑entity groups gain most from stronger digital tooling. If you broker, APIs and portals can also shorten back‑and‑forth and reduce errors.

Left axis shows star ratings; right axis shows NPS. Larger review volumes give more stable signals, so treat small counts with care. Branch and case experiences vary, and service can differ by product line. Read recent reviews and match themes to your needs, such as speed, document expectations, and portal ease. Where NPS is not published, treat the star score as directional only.

Speed and Service

OakNorth is relationship-led. Deals are originated and shaped by sector teams. That helps on complex structures, club participations, or deals that need covenant tailoring. Timelines depend on due diligence and third-party reports. For straightforward transactions, some borrowers report completion in a few weeks. Larger structured deals can take longer.

Shawbrook combines product portals for brokers with specialist teams. For smaller unsecured cases, decisions can be quick once documents are in. Property and ABL transactions depend on valuations, legal work, and field audits. The bank publishes detailed product pathways so you can see what to expect.

Who Each Lender Suits

Typical scenario for OakNorth

You run a multi-site healthcare group seeking £5m to fund acquisitions. You have solid EBITDA, a clear pipeline, and experienced management. You want flexible covenants and the option to add a revolving credit facility for working capital. OakNorth can structure a term loan plus RCF, priced to risk, with security across shares and assets. If property is central, OakNorth can also consider a commercial mortgage or development facility.

Typical scenario for Shawbrook

You operate a manufacturing SME that needs £400k to buy CNC machines and £200k for software. You prefer predictable payments over 4 to 6 years. Shawbrook can blend asset finance for the kit with an unsecured business loan for the software. If you later need headroom for a buyout or a larger refinance, its equipment finance history and ABL team can help roll assets into a broader facility.

How to Apply

Application steps and documentation required for each lender.

OakNorth

Initial discussion with sector team covering purpose, amount, and structure.
Provide last 3 years accounts, recent management information, forecasts, debt schedule, and details of security.
Property deals need valuations. Trading deals may need quality of earnings or customer concentration analysis.
Credit process assesses cash flow, leverage, sponsor strength, and downside cases.
On approval, agree heads of terms, then instruct legals and third parties. Completion follows CPs.

Shawbrook

Choose product path. For example, unsecured business loans, asset finance, ABL, or commercial mortgages.
Submit application via broker or portal with 2 to 3 years accounts, bank statements, management information, asset list, and ID.
For ABL, expect a field survey and collateral appraisal. For property, expect valuation and legal due diligence.
Underwriting confirms affordability, security coverage, covenants, and conditions.
On offer acceptance, complete legal documents and draw funds.

Final Verdict: Which Lender Fits Your Business Best

Choose OakNorth if…

You need £1m+ and want a bespoke structure for acquisitions, growth, or development.
Your business has strong cash flow but needs flexibility on covenants or repayments.
You value a relationship-led process that can combine term debt and RCFs.
Your transaction involves complex property or multiple assets.
You are PE-backed or planning a buy-and-build and need speed plus certainty on larger tickets.

Choose Shawbrook if…

You want a clear product journey for asset finance or unsecured loans from c. £25k.
You plan to finance equipment with predictable monthly payments.
You need an ABL line between £5m and £50m tied to debtors, stock, and property.
You are a professional firm needing working capital and prefer amortising repayments.
You want a bank that spans unsecured, asset-backed, and property finance in one place.

Both banks are credible UK lenders. Pick based on loan size, complexity, and security. If you want help comparing offers or preparing the right pack, speak to Funding Agent. To start, use our enquiry form.

Sources

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FAQs

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