Shawbrook Bank has revealed it will launch fixed rate products across its commercial mortgage products to complement the existing range next month.
Shawbrook has been developing a suite of products with fixed interest rates following demand from brokers looking to give their clients more predictability in payments, as well as people anticipating interest rate rises in the near future. These products are currently in the testing phase.
The existing product range will have fixed interest rate options of 2, 3, 4 or 5 years. At fixed rate expiry, the product will revert to the variable interest rate margin at the time plus the three-month LIBOR (subject to the minimum 0.75% LIBOR floor).
Alternatively, clients can choose a three or five-year fixed rate with a bullet repayment. The Debt Service Coverage Ratio (DSCR) 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, sales and marketing director of commercial mortgages at Shawbrook Bank, said: “We’re excited that we’ll soon be able to offer fixed rate options to our brokers and their clients. No booking fees are payable for the fixed rates and we understand the importance of clarity of price for the clients; this will be reflected within the process when launched.
“We feel the addition of a fixed rate period across all our products further strengthens our range of solutions for property professionals and SME clients.”