Commercial Mortgages

All Commercial Mortgages FAQ's

Why do you use a stressed rate in your affordability calculations?

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.

Can I change my payment date?

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.

Can I borrow additional money from Shawbrook?

We would like to help you and your business succeed.

I have a short term loan with you - can I extend it?

We can't ordinarily consider an application to increase your loan term (unless there are exceptional circumstances that have caused your project to overrun). However, we will gladly consider a new application from you for a longer term mortgage product on the property. Give us a call on 03301 234 522 and we can work out the options that are available for you.

Can I take a payment holiday?

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.

If you have experienced a change in your circumstances or are worried you may have difficulty making your monthly repayment, please call our payment helpline on 0345 848 0227.

If you’ve been affected by Coronavirus, either directly or indirectly, and you think you might struggle to make your loan repayments, click on the links to see our Coronavirus page or complete our online form and one of the team will be in contact with you.

Can I make an overpayment?

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.

Can I redeem my loan early?

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.

If you are interested in redeeming your loan with us, you can call us on 0345 848 0223 to request a redemption statement. You can request up to four redemption statements in any calendar year as part of the standard service provided on your account. A fee of £25 will be charged for any additional requests. This fee may be paid by you or another lender.

What is a regulated bridging mortgage?

We offer two types of regulated bridging mortgages:

Is the regulated bridging mortgage secured against my home?

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.

What terms are offered on the regulated bridging mortgage?

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.

How is interest charged on the regulated bridging mortgage?

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.

How often are repayments made to the regulated bridging mortgage?

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.

Will I need a valuation on my property, what will it cost and who will arrange it?

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.