Exclusive: Shawbrook reduces fees for refinance

Shawbrook Bank’s commercial mortgages division has restructured the costing model for its refinance business.

If a customer wants to refinance part way through their term onto a different product, or access additional borrowing, they will now pay a flat fee of £895. Previously, there had been an arrangement fee of 1.95% for STL business and 1.5% for term business. 

The lender also removed an implementation charge for those customers who require a product switch at the end of their mortgage term. Previously, there had been a 0.95% charge on the loan amount.

Shawbrook implemented the change after listening to requests from its broker partners.

It said the move is part of a campaign to consider suggestions about the way it can improve its business.

Karen Bennett, Sales and Marketing Director of Commercial Mortgages, said Shawbrook is determined to embed a culture of focusing on customer outcomes within the bank.

“These changes and the ongoing improvement of our proposition is evidence of the bank’s commitment to achieving this goal,” said Karen.

“Naturally, we expect that these fee changes will be warmly welcomed by our brokers and their clients, with the re-structure resulting in potentially significant savings.”