For Unregulated Commercial Mortgages click here.
Shawbrook uses a reference rate for determining the interest rate on certain of our products. For some of these products, we use “Term SONIA” (also known as “Term SONIA Reference Rate” or “TSRR”). There are a number of approved providers of the Term SONIA Reference Rate, and the current provider we have chosen is set out below.
The Reference Rate Administrator we are currently using to provide Term SONIA is ICE Benchmark Administration Limited.
For further information regarding Term SONIA and ICE Benchmark Administration Limited, please refer to the following sources:
Bank of England – Term SONIA Reference Rate Summary
theice.com - Calculation Methodology
theice.com - Term SONIA Reference Rates
Shawbrook takes its responsibility as a lender seriously so we use a stressed rate when calculating affordability.
We assume an increase to your initial rate, ensuring that, as interest rates rise and as the economy recovers, we are confident that your property will generate sufficient income to cover all of its expenses at that time. As an investment, it is essential the property generates enough income to cover its costs.
Yes. We understand how important it is for you to manage your monthly incomings and outgoings and are happy to help by changing your payment date for you, as long as the change doesn't extend the overall term of your loan.
We would like to help you and your business succeed.
We don't offer payment holidays on any of our loans; you'll need to make your payments by Direct Debit each month as they fall due.
You can make an overpayment on your loan with us at any time. There is no minimum or maximum amount you can overpay, however for some of our products you may incur an Early Repayment Charge on the amount you repay if you pay off more than 10% in a 12 month period.
You can pay back your loan with us at any time. For some of our products, you will incur Early Repayment Charges if you pay your loan back before the agreed end date of the loan. Please check your Offer Letter for confirmation of whether Early Repayment Charges apply to your loan.
We offer two types of regulated bridging mortgages:
The regulated bridging mortgage is secured against the property you are selling, or the one you are looking to purchase, please note that this may be repossessed if you do not keep up repayments.
There is no minimum term. The maximum term is 12 months. If you do not redeem the mortgage within the 12 months, please contact us to discuss an extension.
The interest rate is fixed for the duration of the term (the maximum term is 12 months). Interest is accrued monthly and the total amount of interest payable is rolled up and paid upon exit of the loan.
There are no monthly repayments. You pay in full upon exit of the loan. The interest on the loan is accrued monthly and rolled up into one repayment, paid upon exit.
We will require a property valuation. Your mortgage broker will instruct the valuation on your behalf. Valuation fees will be payable, and the cost can be confirmed by your broker or ourselves prior to application. The cost will be dependent on the location of your property and its value. Valuation fees must be paid upfront, are non- refundable and cannot be added to the mortgage balance.