Shawbrook Bank has launched into the regulated bridging market with two new specialist mortgage products.
The RB1 and RB2 are the Bank’s first residential mortgage products and are available alongside the lender’s existing commercial mortgage offering.
Shawbrook said its new products are designed to cater for clients looking to avoid ‘chain breaks’ and/or downsize. The RB2 also provides the option to carry out light refurbishment works on either the new property, or the existing property, in order to add value before sale.
The loans start from 0.59% per month and can be taken out at a loan to value of up to 70%. Clients can borrow from £50k to £2.5m for a maximum term of 12 months and interest is rolled up, repayable upon exit.
Cases are judged on an individual basis and clients will be asked to provide detailed repayment strategies to ensure they can repay the loan.
Shawbrook’s regulated bridging products are available to UK nationals with homes in England and Wales and can be accessed through the Bank’s broker partner network.
,”Although the regulated bridging market is new territory for Shawbrook, the move is part of a natural progression following our success within the short term loan market,” said Karen Bennett, sales and marketing director for commercial mortgages.
“After extensive research into this sector we wanted to provide a traditional finance solution for chain breaks and those looking to downsize. We have therefore created two bridging products for this specific target market and particular purpose.
“We’re always looking for ways to develop our offering in line with the evolving needs of our clients and brokers and our priority remains firmly focused on ensuring the best customer outcomes.”