Lender launches lowest ever bridging rates

Lender launches lowest ever bridging rates



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A lender has signalled its commitment to the short term market with a raft of new product changes to its short term loan bridging offering.

A lender has signalled its commitment to the short term market with a raft of new product changes to its short term loan bridging (STL) offering.

Shawbrook Bank has reduced rates to 0.65 per cent per month on standard bridging and just 0.73 per cent on refurbishment bridging. There is also now no minimum term on any short term loan from Shawbrook.

The product changes are part of Shawbrook’s focus on enhancing its offering for property investors and brokers working within the short term market. These changes are available to all broker partners, with no additional fees for the client and no commission compromises for brokers.

Key changes to the STL offering:

• Shawbrook has removed the minimum term;
• 0.65 per cent per month up to 60 per cent LTV – 7 per cent above three-month LIBOR, which was previously 7.5 per cent - standard bridging;
• 0.69 per cent per month up to 70 per cent LTV – 7.5 per cent above three-month LIBOR, which was previously 8.5 per cent - standard bridging;
• Short term refurbishment bridges reduced to 0.73 per cent per month on residential property up to 70 per cent LTV – 8 per cent above three-month LIBOR, which was previously 9.15 per cent;
• These changes apply to pipeline business too, up to Formal Offer stage.

Karen Bennett, Head of Sales and Marketing for Commercial Mortgages at Shawbrook Bank, said: “We are striving to make Shawbrook the lender to follow in 2013. These changes demonstrate just how serious we are about becoming a major player in the STL market for property professionals.

“Brokers are at the heart of Shawbrook’s business and we appreciate the hard work they do to complete deals. The change to the minimum term was in direct response to feedback from brokers active in the bridging market. We also understand the need for transparency in bridging on pricing, fees and commissions and are committed to always delivering this.

“We are fully aware that it’s a huge step when switching bridging providers as it’s all about the ability to deliver. Shawbrook has proven that we can deliver in terms of speed, service and the best rates in the market.” 

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