You are here: cherry > Press releases for June 2016 > Shawbrook reduces Early Repayment Charges on its term loans

23 June 2016

Improvement valid on all term loans after 5 years.

Shawbrook Bank has announced a change in its Early Repayment Charge (ERC) structure, removing the 1% overhang that was in place on all term loans after 5 years. This forms part of a wider strategy by the Bank to reiterate their commitment to transparent lending, coming off the back of a range of recent product enhancements. These include a reduction in pricing across the Commercial and Semi-Commercial product ranges, in addition to refined criteria for short term products which is designed to strengthen the lending teams’ ability to make sensible credit decisions on cases.

This latest ERC change is available on all new formal offers issued by the Bank.

Term Loan ERCs:

• 3 year term: 3% year 1, 3% year 2, 1% year 3
• 5 year term: 3% year 1, 3% year 2, 3% year 3, 3% year 4, 1% year 5
• 10-30 year term: 3% year 1, 3% year 2, 3% year 3, 3% year 4, 3% year 5

Shawbrook is also able to offer terms from 6-9 years, for which the ERCs for 10 years+ will be applied.

Karen Bennett, Sales & Marketing Director of Commercial Mortgages at Shawbrook added:

“These changes to our ERCs come as a result of listening to the feedback provided by our Broker Partners and their clients, and marrying this with the expertise of the Shawbrook teams. Any feedback that helps us improve our ability to transact business is always welcome. In this circumstance, we are confident that this update is another positive step on our broader path towards process and product improvement.

“The Bank is committed to transparent pricing and clear criteria, with the core aim being to ensure the best outcome for the customer and to reiterate our strong lending appetite.”