What type of interest is charged on my second charge mortgage?
Shawbrook have a range of products available, from variable to 2 and 5 year fixed rates.
If you take a fixed rate product, once the fixed rate period comes to an end the interest rate will change to a variable interest rate. The variable rate charged can be changed at the discretion of Shawbrook Bank. The variable interest rate applied to your loan will not reduce below the rate as at the date of the mortgage.
Shawbrook Bank may vary the variable interest rate to take account of:
- changes in the Bank of England’s Bank Rate (which can be found at www.bankofengland.co.uk);
- changes (or anticipated changes) in the cost of funds used in its lending business;
- a material adverse change in the value of the security Property; or
- changes in law, decisions, determinations or guidance of any regulatory authority regulating Shawbrook Bank’s business or applicable codes of practice; or to ensure its business operates in a prudent and effective manner.