Shawbrook introduces new regulated bridging mortgage products

The launch of Shawbrook’s two new specialist mortgage products meets the high demand from the bank’s business partners and further demonstrates the strength of this sector, after data recently revealed that regulated bridging loans had increased by 15% in Q2 of this year.

The launch of Shawbrook’s two new specialist mortgage products meets the high demand from the bank’s business partners and further demonstrates the strength of this sector, after data recently revealed that regulated bridging loans had increased by 15% in Q2 of this year.

Shawbrook’s RB1 (Regulated Bridging Mortgage – no refurbishment) and RB2 (Regulated Bridging Mortgage – light refurbishment) are available alongside its existing commercial mortgage products and are the bank’s first residential mortgage offering.

The RB2 product provides the option to carry out light refurbishment works on either new or existing properties in order to add value before sale.

Eligible customers will be able to borrow between £50,000 to £2.5m for a maximum 12 month term and loans start from 0.59% per month with an LTV of up to 70%. Interest is also rolled up and repayable upon exit.

Discussing the new products, Karen Bennett, sales and marketing director, commercial mortgages for Shawbrook Bank explained that the move to regulated bridging was a natural progression for the bank. After extensive research into the sector, she said, they wanted to be able to provide traditional finance solutions for chain breaks and for those looking to downsize – two of the more common purposes of this type of finance.

“We have therefore created two bridging products for this specific target market and particular purpose,” added Bennett.

“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.”

Shawbrook will only accept applications where an advised sale has taken place within the chain and the brokerage has the correct permissions to give that advice, and where the submitting intermediary also has the correct permissions. The new regulated bridging mortgage offering will initially only be available via Shawbrook Strategic Partners, including Mortgages for Business. 

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