Shawbrook Bank has unveiled a range of fixed rate options across its commercial mortgage range (excluding short term loans).
The bank has added the option for clients to take a three, four or five-year fixed rate period on their term loans. The client can choose to match the term to the fixed period (e.g. three-year term with a three-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 five-year fixed period) When the fixed rate expires, the rates will revert to the variable interest margin plus the three-month LIBOR.
Presently fixed rates range from 5.90% above three-month LIBOR for three-year large residential investments, to 8.61% for a five-year commercial mortgage. The fixed rates will be re-priced monthly, with the latest rates emailed to Shawbrook’s panel of broker partners monthly, as well as being available on Shawbrook’s website.
The Debt Service Coverage Ratio (DSCR) 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 (pictured), sales and marketing director for 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.”