Shawbrook removes 3% margin increase at expiry of STL facility
Shawbrook Bank is aiming to drive positive customer outcomes as an agenda item across its offering by removing the 3% margin increase across its Short Term Loan product range.
Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in C:\inetpub\wwwroot\2025.financialreporter.co.uk\htdocs\templates\front-end\partials\article_blockquote.php on line 2
Historically, the Bank approved a Short Term Loan to overrun where the customer had completed on their objectives for the property, but the sale/ refinance had fallen after the original loan expiry date.
Karen Bennett, Sales & Marketing Director for Shawbrook Commercial, said:
“We felt that penalising customers on this basis was not a strong outcome and have consequently removed this 3% margin as a matter of policy across all new STL business offered from Wednesday 21 October 2015 onwards. Whilst an overrun is still a breach of the loan agreement and should be avoided wherever possible, we are aware that there may be mitigating circumstances and in keeping with our pragmatic approach to lending - we are happy to be flexible.”
Shawbrook has dedicated significant resource throughout 2015 to improving its proposition in terms of flexibility and cost, and say this development will be a significant one for the STL borrower.
Breaking news
Direct to your inbox:
More
stories
you'll love:
This week's biggest stories:
This week's biggest stories:
Santander
Santander launches 98% LTV ‘My First Mortgage’
First-time Buyer
Improved affordability sparks 20% rise in first-time buyers: NationwideÂ
Inflation
Further rate cuts dampened as inflation rebounds to 3.4%
Mortgage Rates
Two Big Six lenders increase mortgage rates as swaps rise
Bank Of England
Bank of England holds interest rates at 3.75% in narrow 5-4 vote
Interest Rates
Looser Fed policy stance could slow further rate cuts, policymakers warn