Commercial lender's first delivery on short term promise

Commercial lender's first delivery on short term promise


Shawbrook Bank has completed its first two short-term loans following the product’s launch at the end of last year.

Shawbrook’s short-term loan, which has a minimum term of three months and a maximum term of 12 months, was created for the purchase of residential and semi-commercial investment property in strong geographical locations. 

Working through brokers Springmount Solutions in Edinburgh and Commercial Mortgage Solutions in Fordingbridge, Hampshire, Shawbrook provided loans for two separate residential investment properties.

Commenting on a short-term loan completion for a client who used the product to acquire a property in a prime location in Edinburgh, Charles Mackintosh from Springmount Solutions said: “The property my client acquired had land attached for which planning permission had already been granted to develop a mews to the rear of the property. The attraction of Shawbrook’s product was that it gave my client the options of either selling the residential property and keeping the land for future development, selling the property with the planning permission and detailed plans or developing the new property themselves.

“Both my client and I were very impressed with the product and Shawbrook’s flexibility in meeting the client’s needs. Shawbrook turned the case around extremely quickly, and due to this initial experience, my client has opted for the short term loan again to acquire a second property.”

The short term loans are priced at 7.45 per cent above three month LIBOR, giving a current monthly interest rate of 0.7 per cent. There is no early repayment change, and Shawbrook requires 7 working days’ notice of redemption, subject to a minimum 3 month period. Loans range from £150,000 to £2.5 million funding up to 65 per cent of the purchase price and are distributed through Shawbrook’s accredited brokers.

Commercial Mortgage Solutions also brokered a deal on the short-term loan product for a client who was coordinating a small residential development scheme in Poole.

Ian Monks, Consultant for Commercial Mortgage Solutions said: “Shawbrook completely understood my client’s needs and worked hard to deliver the loan on time and at the quoted price, which isn’t always common in the lending industry. It’s a competitive market, but Shawbrook stand out, due to their product offering and service.”

Stephen Johnson, New Business Director of Shawbrook Bank said: “Our short-term loans are the latest addition to a suite of commercial lending products, and they are targeted at the experienced professional property investor who is looking to take advantage of current buying opportunities available on the market.

“As with all Shawbrook’s lending products, our short-term loans are distributed through our network of brokers. As a savings and lending specialist, we’re committed to making it simpler for businesses to borrow and easier for brokers to make deals happen. We believe the introduction of the short term loan is a strong complement to our existing suite of lending products, and we’re delighted to have completed our first two loans of this kind.”

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