Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
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Shawbrook are one of the UK’s leading property investor focused lenders, but as they are not on the High Street and can only be access by authorised brokers they remain hidden from the limelight. They specialise in the more commercial end of the Buy to Let and Investment property market than more mainstream and sometimes cheaper BTL lenders.
Shawbrook have this week launched a range of fixed rate deals for their Buy to Let, HMO and Commercial mortgages.
To ensure clients benefit from greater stability in payments, particularly as market speculation around interest rate rises intensifies, Shawbrook has added the option for clients to take a 3, 4 or 5 year fixed rate period on their term loans.
Customers can choose to match the term to the fixed period (e.g. 3 year term with a 3 year fixed period) or they can choose to take a longer term and fixed for an initial period. (e.g. 10 year loan with a 5 year fixed period)
When the fixed rate expires, the rates will revert to the variable interest margin plus the 3 month LIBOR.
Currently fixed rates range from 5.90% above 3 month LIBOR for 3 year large residential investments, to 8.61% for a 5 year commercial mortgage. The fixed rates will be re-priced on a monthly basis.
The Debt Service Coverage Ratio (DSCR) otherwise known as stress testing, on commercial mortgages will be based on the fixed pay rate at either 125% for residential properties and products, or 140% for commercial properties and HMOs.
Karen Bennett, Sales & Marketing Director fo Commercial Mortgages at Shawbrook Bank said, “we are delighted to offer our fresh approach to our brokers and their clients with the addition of fixed rate options. We understand the value of predictability that fixed rates offer and also the importance of clear pricing for property professionals and SME clients. We are confident that a fixed rate option will strengthen our brokers’ offering at a time when payments stability is in high demand.”
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