Shawbrook Bank has altered its Early Repayment Charge (ERC) structure, removing the 1% overhang that was in place on all term loans after five years.
This latest ERC change is available on all new formal offers issued by the bank.
Term Loan ERCs:
- 3 year term: 3% year 1, 3% year 2, 1% year 3
- 5 year term: 3% year 1, 3% year 2, 3% year 3, 3% year 4, 1% year 5
- 10-30 year term: 3% year 1, 3% year 2, 3% year 3, 3% year 4, 3% year 5
Shawbrook is also able to offer terms from 6-9 years, for which the ERCs for 10 years+ will be applied.
The bank said this move comes as part of a wider strategy towards transparent lending.
Recent changes include a reduction in pricing across the commercial and semi-commercial product ranges, in addition to refined criteria for short term products.
Karen Bennett, sales and marketing director of commercial mortgages at Shawbrook, added: “These changes to our ERCs come as a result of listening to the feedback provided by our broker partners and their clients, and marrying this with the expertise of the Shawbrook teams. Any feedback that helps us improve our ability to transact business is always welcome. In this circumstance, we are confident that this update is another positive step on our broader path towards process and product improvement.
“The bank is committed to transparent pricing and clear criteria, with the core aim being to ensure the best outcome for the customer and to reiterate our strong lending appetite.”