Shawbrook Bank has implemented a re-structure of its commercial mortgage costing model for re-finance business, as well removing all of its switching costs for customers.
It has made the following changes for its broker partners.
Reduced cost of re-financing for customers: Previously, if a customer wished to refinance part way through their term onto a different product, move from variable to a fixed rate, or access additional borrowing, there was an associated arrangement fee of 1.95% for STL business and 1.50% for term business.
The Commercial Mortgages team decided that a flat rate fee of £895 (regardless of loan size or product) is a better outcome that yields significant savings for the customer.
Switching cost removed for customers: In addition to the development across re-finance business, Shawbrook has also announced that should the customer require a product switch at the end of their mortgage term, there will be no implementation charge. The historic charge had been 0.95% of the loan amount.
Karen Bennett, sales and marketing director of commercial mortgages at Shawbrook Bank, said :”This change is part of a focus on customer outcomes that we are determined to embed within the culture at Shawbrook. These changes and the ongoing improvement of our proposition is evidence of the bank’s commitment to achieving this goal.
“Naturally, we expect that these fee changes will be warmly welcomed by our brokers and their clients, with the re-structure resulting in potentially significant savings.”