Shawbrook Bank has claimed its product switching facility has seen increasing numbers of clients enquiring about the opportunity to switch products when nearing the end of their existing facility.
This follows the facility’s soft launch in April this year.
When the loan reaches four months from maturity, Shawbrook will provide both the client and the original Shawbrook-accredited broker with information around the opportunity to switch to a current product with the bank.
Following this initial notification, the bank will update the broker by email at various milestones during the process should their client decide to proceed (and also if the switch does not go ahead). For loans below £750,000 existing customers will be eligible for a discount of 0.25% from the interest rate margin.
Shawbrook says the facility delivers process and cost efficiencies for the client, as well as additional revenue for the broker in the form of a further commission payment on completion of any new loan.
Karen Bennett (pictured), sales and marketing director for commercial mortgages at Shawbrook, said: “Since its launch in April, our switching facility has been gaining traction and we wanted all of our brokers and clients to be aware of this opportunity directly.
“From a client perspective, switching to a current product is faster, cheaper and simpler than arranging a refinance with another lender, and won’t add to the broker’s workload.
“We believe that this proactive approach adds real value to our broker partners by delivering options for their clients, along with additional revenue opportunities.”