Regulated Bridging Finance launched by ShawbrookMake Text Bigger
Shawbrook bank have launched two regulated bridging finance products for the first time.
These are treated and regulated in the same way as a residential term mortgage.
It is primarily where the borrower is taking a loan secured by a first charge (soon to include 2nd charges as well) against their main residence. This might be used for traditional chain breaking, downsizing or auction finance.
Borrowers will also be able to use these regulated Bridges for refurbishment, I.e. someone wanting to buy a home that isn’t habitable, they can use the Bridge to complete the work and then remortgage onto a standard product.
Regulated Bridging product 1:
- Maximum LTV 70% (Lower of the purchase price or market value)
- Interest only rollup until the end of the loan
- Maximum term 12 months with no minimum
- Arrangement fee 1.95%
- Min loan £50,000 Max Loan £2,500,000
- Interest rate charged per month 0.59% up to 45% LTV, 0.65% up to 55% LTV and 0.69% up to 70% LTV
Regulated Bridging product 2 for Refurbishment:
- Same as above
- Interest rate charged per month 0.65% up to 45% LTV, 0.69% up to 55% LTV and 0.73% up to 70% LTV
Sales and Marketing Director for Commercial Mortgages at Shawbrook Bank, Karen Bennett said, “After extensive research into this sector we wanted to provide a traditional finance solution for chain breaks and those looking to downsize.
“We have therefore created two bridging products for this specific target market and particular purpose. We’re always looking for ways to develop our offering in line with the evolving needs of our clients and brokers and our priority remains firmly focused on ensuring the best customer outcomes.”
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