Shawbrook cuts residential bridging rates and enhances bridge-to-term proc fees

Shawbrook has reduced rates by 0.05% on its 75% and 90% LTV residential bridging products, including light refurbishment.

Alongside the rate reductions, Shawbrook is increasing the procuration fee payable to broker partners on eligible bridge-to-term cases from 0.50% to 1.00%.

The enhanced proc fee applies where a Shawbrook bridging loan is refinanced onto a Shawbrook term product, where that product is the suitable next step for the case. Shawbrook’s existing 1% discount to the term product arrangement fee will also remain in place.

There have been no changes to bridging loan commissions which remain at 1.95% for broker partners.

These latest changes build on a series of bridging enhancements introduced earlier this year, including lending for costs up to 90% LTV on light residential refurbishments, commercial bridging up to 75% LTV and simplified underwriting requirements. Shawbrook has also improved its application journey with a modernised AIP and full mortgage application experience with AVMs available at up to 75% LTV for eligible properties.

Daryl Norkett, director of real estate proposition at Shawbrook, said: “Price, speed and certainty all matter when a client is using bridging finance. Reducing rates on our 75% and 90% LTV residential bridging products, including light refurbishment, gives brokers more competitive options for a broad range of property plans.

“Alongside this, the enhanced procuration fee and existing arrangement-fee discount support brokers when a Shawbrook term mortgage is the right exit from a Shawbrook bridging loan. Having worked with the broker and borrower on the bridging loan, we are well placed to support with longer term finance once that project is completed. Together with our wider bridging proposition improvements, these changes are designed to make it easier to support clients from acquisition through to longer-term finance with an end-to-end solution.”