Shawbrook Bank has announced the removal of the 3% margin increase across its short term loan product range.
The lender has in the past approved a short term loan to overrun where the customer had completed on their objectives for the property, but the sale/refinance had fallen after the original loan expiry date.
Karen Bennett, sales and marketing director for Shawbrook Commercial, said: “We felt that penalising customers on this basis was not a strong outcome and have consequently removed this 3% margin as a matter of policy across all new short term loan business offered from Wednesday 21 October 2015 onwards.
“Whilst an overrun is still a breach of the loan agreement and should be avoided wherever possible, we are aware that there may be mitigating circumstances and in keeping with our pragmatic approach to lending – we are happy to be flexible.”