Shawbrook Bank’s Commercial Mortgages team has released the latest update in its ‘Spring Fling’ series of pricing initiatives.
This follows its 0.25 percentage point reduction to arrangement fees for all new applications in March.
The second initiative is live as of today and focuses on commercial products, with three key changes including:
- Reduced pricing
- Three standardised LTV buckets across the range
- The retiring of the Bank’s LCI 1&2 products
- Increased maximum loan size of £15m for CI1 & CI2
The new commercial rates are considerably lower, with brokers’ clients being passed on a reduction of up to 0.64 percentage points on CI1 (Commercial) and up to 0.54% on CI2 (Semi-Commercial):
· (CI1) Commercial (up to 55% LTV) – reduction of 0.64 percentage points
· (CI1) Commercial (55.01 – 65% LTV) – reduction of 0.49 percentage points
· (CI1) Commercial (65.01 – 75% LTV) – reduction of 0.25 percentage points
· (CI2) Semi-Commercial (up to 55% LTV) – reduction of 0.54 percentage points
· (CI2) Semi-Commercial (55.01 – 65% LTV) – reduction of 0.44 percentage points
· (CI2) Semi-Commercial (65.01 – 75% LTV) – reduction of 0.30 percentage points
The bank has simplified its commercial offering further. As of now, there are three LTV buckets across commercial and semi-commercial products: up to 55% LTV, 55.01 – 65% LTV and 65.01 – 75% LTV.
Shawbrook has announced there will now be just two dedicated products for commercial investment: CI1 for commercial and CI2 for semi-commercial. The commercial mortgages team took the decision to retire LCI1 and LCI2, with CI1 and CI2 both accepting loans up to £15m. The bank’s E-AIP online application system, designed to provide a credit-backed IMO within 15 minutes for brokers, will still only be accessible for commercial applications under £750,000.
Karen Bennett (pictured), managing director of Shawbrook Commercial Mortgages, said: “We realise that cutting through the noise and providing a transparent, no-nonsense approach to lending makes our broker partners’ lives easier. We are confident that by streamlining our commercial product range, both brokers and their clients will benefit from a product offering which is both innovative and easy to understand. When combined with the significant pricing reductions which are now live, this emphasises our strong appetite to lend to investors and landlords in the commercial mortgages space.
“We still have two more rounds of the ‘Spring Fling’ to go and the Shawbrook teams are very excited about the positive customer outcomes these will provide for our brokers’ clients. I would advise our broker partners to keep a lookout for the next round of initiatives which will be on the way next week.”