Alternative Bridging Corporation, Shawbrook and Gatehouse Bank revise product offerings

Alternative Bridging Corporation, Shawbrook Bank and Gatehouse Bank have announced changes to their specialist finance product suites.

Alternative Bridging Corporation

Alternative Bridging Corporation has launched a range of specialist refurbishment loans that allow further drawdowns and reduced rates on practical completion of the works.

It offers loans between £350,000 and £3m for light and heavy refurbishments on residential and commercial properties and features initial advance for purchase or refinance and further drawdowns to fund improvements, as well as final advance and reduced interest on practical completion.

The refurbishment suite is available on regulated and non-regulated loans and can be secured as a first- or second-charge on residential properties or a first-charge on commercial properties.

There is also the option on non-regulated loans to extend or convert to a three- to five-year interest-only term loan.

The first-charge range is provided at 70% LTGDV and 0.75% per month (reduced to 0.65% on practical completion) for light refurb and 65% LTGDV at 0.85% per month (lowered to 0.65% on practical completion) for heavy refurb.

Meanwhile, the rate for the second-charge refurbishment suite is 0.85% at 65% LTGDV, going down to 0.65% on practical completion.

For the commercial refurbishment products, clients can secure loans at 0.85% at 65% LTGDV, with the rate lowered to 0.75% on practical completion.

Jonathan Rubins, director at Alternative Bridging Corporation, said: “Our new range of refurbishment loans provide investors and owner occupiers with a comprehensive set of funding options that have been specifically developed to finance the different stages of a refurbishment project across both residential and commercial property. 

“As experienced property lenders, we understand that there can often be unexpected additional costs that arise during a renovation and so, as works are completed, we are able to advance additional funds.

“The ranges provide full flexibility to meet the individual needs of the customer.”

Shawbrook Bank

Shawbrook Bank has revamped its commercial and semi-commercial investment ranges and has launched a new limited-edition product. 

The new 70% LTV tranche, added to its semi-commercial offering, is available on a five-year fixed term at 5.34% on mortgages over £150,000.

Meanwhile, the specialist lender has introduced a simplified product structure for its commercial and semi-commercial ranges, mirroring the revamped BTL offering announced earlier this year. 

Its commercial investment suite is now split into three product bandings, based on mortgage size: over £1m, between £150,001 and £1m, and up to £150,000.

The lender has also trimmed prices across its semi-commercial range, with rates now starting at 4.89% on mortgages over £1m.

In addition, the bank removed its complex commercial product — instead, it will continue to support complex transactions via its revamped standard product suite.

Gavin Seaholme, head of sales at Shawbrook Bank, said: “Our award-winning commercial offering has been enhanced even further with this revamp. 

“We’ve managed to streamline the range while becoming more competitive in the marketplace and hopefully able to support even more customers with our new limited edition special. 

“We’re committed to the markets we serve and won’t stop looking at how we can improve our offering to meet the needs of our brokers and customers.”

Gatehouse Bank

Gatehouse Bank has launched a new tier of BTL products.

The new tier, available for finance between £500,000 and £5m, will benefit from rates 0.20 percentage points lower than the equivalent products for smaller amounts.

For UK individuals and entities, the new products for standard BTL properties are offered at 3.44% at 65% finance-to-value (FTV) and 3.64% at 80% FTV, both for two-year fixes, while the new five-year fixed products are available at 3.70% at 65% FTV and 3.90% at 80% FTV.

The new tier applies to HMOs and MUFBs as well, with rates starting at 3.84% at 65% FTV and 4.10% at 75% FTV for two-year fixed terms, while the five-year fixed products are provided at 4.24% at 65% FTV and 4.34% at 75% FTV.

For UK expats, the new over-£500,000 product suite is available at:

  • 3.64% at 65% FTV and 3.94% FTV at 80% FTV for two-year fixed terms for standard BTL
  • 3.94% at 65% FTV and 4.14% at 80% FTV for five-year fixed terms for standard BTL
  • 4.14% at 65% FTV and 4.34% at 75% FTV for two-year fixed terms for HMO/MUFBs
  • 4.44% at 65% FTV and 4.64% at 75% FTV for five-year fixed terms for HMO/MUFBs

Meanwhile, the new tier for international residents — only available for standard BTL properties — is offered at 4.14% at 65% FTV and 4.34% at 80% FTV for two-year fixed terms, and 4.34% at 65% FTV and 4.54% at 80% FTV for five-year fixed terms.

John Mace, product manager for home finance at Gatehouse Bank, said: “We are always trying to find ways to expand and improve our range, and the changes we have made ensures our offering is even more accessible and competitive.”

“UK expats, who often find it difficult to access finance, will particularly benefit from our lower rental rates, in addition to our manual underwriting process, which means that we treat every customer on an individual basis.”

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