Shawbrook

Shawbrook Bank bills itself on being ‘proudly different’ to mainstream banks and lenders. Rather than offering fixed products, services and application acceptance criteria, customers and their requests are instead assessed on individual merit. Established in 2011, Shawbrook was founded to create the UK’s first true ‘human’ bank where key decisions are never made by computers.

Financial Services Offered by Shawbrook Bank

  • Debt Consolidation Loans
  • Car Loans Home
  • Improvement Loans
  • Wedding Loans
  • Fixed Term Accounts
  • Notice Savings Accounts
  • Easy Access Accounts
  • Second Charge Mortgages
  • Mortgages for over 55s
  • Bridging Finance

Bridging Loans from Shawbrook Bank

Usually, a bridging loan tends to be used for purchasing a property. These loans are designed to aid people who are moving house and who want to acquire a new property while their existing property is still on the market. When equity happens to be locked up in a mortgage, a Shawbrook Bank bridging loan may be appropriate to finance a property purchase.

Bridging loans can be especially valuable to property owners, people who are buying property at an auction and developers. Home-movers may be planning to use a bridging loan to cover a break in a property chain, to make sure that they can acquire a brand-new home while awaiting a mortgage. Nonetheless, it is important that you keep in mind that getting a bridging loan does not assure you will obtain a mortgage in the future.

How Do Bridging Loans Compare to Other Bank Loans?

In theory, they differ because they’re for a short-term purpose, whereas long-term loans tend to have more general purposes. In reality, the speed of getting the cash in your account is the main difference between the two. It can take weeks for some other banks like Barclays to complete a standard loan application, but a Shawbrook bridging loan can be obtained in twenty-four to forty-eight hours.

Interest Rates

How much will a bridging loan cost?

Adding up interest, the amount of the loan and the associated fees should give you an accurate number.

But how high are bridging loan interest rates?

And which factors can affect the rate of interest you will be paying?

  • Property value – How much your security is valued at will also affect the rate of interest applied to your loan. The more risk a lender faces, the higher the interest will be.
  • Open vs. Closed Closed bridging loans have a set repayment date, which lowers risk and lowers interest rates, while open bridging loans do not have a set repayment date.
  • Loan size Usually, bigger loans come with higher rates of interest due to the fact that they pose a greater risk to the loan provider.
  • Repayment terms – If you have chosen a closed bridging loan and you have set a concrete repayment date, the length of your loan may affect your interest rate – with longer loans subject to higher interest rates.

Applying for Bridging Finance

Any limited company, person, or trust can get a bridging loan online. The online application for bridging finance is usually easy to fill out and fast. These loans can be used for virtually any reason, as long as the reason for applying is accepted and the debtor is older than 18.

Bridging loans require some type of an asset, such as land or property as security. They are also a secured loan type and this means the lender takes first or second charge over the asset, property or land being financed.

If the borrower is a business, the lender might require further guarantees. The concept is that offering security to the lender guarantees the loan can be paid back. Without the ownership of an asset, a bridging loan application is unlikely to succeed.

The primary concern for online bridging loan lenders is how and when they’ll be paid back. Online loan providers will want to be certain that if they lend funds, they will be paid back as assured by the debtor.

The security will be used to work out the LTV of a bridging loan, which works in a comparable way to a typical mortgage from one of the big high street banks, such as the Halifax, NatWest, or Santander.

It shows the size of the loan in comparison with how much the property is valued at, which means that the overall loan amount must fit within the LTV limit.

Bridging Loan Calculator

Our bridging finance calculator is free, user-friendly and straightforward to use. It is a helpful tool that can help you:

  • Get an estimate on the amount you may be able to apply for.
  • Create estimations on how many payments you may make each month.
  • Find out how much you’ll be able to borrow without affecting your credit report.

Our bridging finance calculator can help you find the loan that is right for you.

In addition to offering you an accurate estimate regarding how much you can borrow and how much it will cost you, our bridging finance calculator can also help you narrow down which deals are the most appropriate for your circumstances.

Commercial Loans from Shawbrook Bank

Commercial loans are short-term products which can be renewed once matured. A commercial loan is used to finance the capital needs of a company; that is the daily running costs and the purchase or lease of any essential assets that may be required. A commercial loan can often be borrowed from a bank or a credit union.

A company’s assets tend to be used to secure the loan. In order to apply for a commercial loan, the business must always be seen as a good credit risk. To determine how good a credit risk the business is, specially appointed commercial loan officers will scrutinise various financial and tax statements whilst carrying out an analysis of a current business plan.

Loan Calculator

Our online loan calculators compare loans that can be paid back between terms of one and twenty-five years. The APR you’ll be charged will depend on your circumstances, and generally falls between 3.2% and 99.9%. You can compare the cost of various deals by altering the loan term or the amount you want to apply to borrow. You can also enter your monthly budget and let the calculator tell you how much you’re able to borrow and over what length of time. Loan calculators can be used for all available ShawBrook loan types, ranging from unsecured and secured products through to home and business loans.

Help-to-Buy Loans from Shawbrook Bank

These loans are intended to help people purchase a brand-new home without having to make a huge deposit. They are also highly useful for first-time buyers trying to get on the property ladder.

What is Help to Buy?

The Help to Buy scheme has three main parts:

Help to Buy ISAs, London Help to Buy and Help to Buy equity loans.

Do I qualify for the Help to Buy scheme?

To qualify for the scheme, you’re required to:

  • Be looking at buying a property worth £600k or less, although for Help to Buy ISAs – different limits apply
  • Have a deposit of at least 5%
  • Be purchasing a property you’re planning on living in most of the time

What Is a Help to Buy Equity Loan?

These loans represent one of the most popular ways of getting onto the property ladder and are aimed at those who look at buying a new-build property.

A Help to Buy equity loan works like this:

  • You put a deposit down of at least 5%
  • The government lends you up to 20% of how much the property is worth valued at as an equity loan
  • You get a mortgage on the remainder of the property’s value, so, if you put down a deposit of 5% and your loan was 20%, you would then apply for a 75% mortgage

Homeowner Loans from Shawbrook Bank

A homeowner loan is only available to those who already have a mortgage. This type of borrowing is known as secured borrowing because the debt is secured against your home, which can be repossessed if payments are not made as agreed.

Although this obviously reduces the lender’s risk, which results in preferential rates of interest, it simultaneously represents a significant risk to the borrower who will lose the property if repayments have defaulted.

How Much Can I Borrow?

The amount of the loan granted can vary from one lender to the next, but homeowner loans are generally available from £250,000 to £500k. This is because the loan providers always feel significantly more confident when approving loans to borrowers who are prepared to offer security.

How Long Do I Have to Repay My Homeowner Loan?

Because of the large amount of credit that’s associated with a homeowner loan, the repayments can be spread over 30 years. These terms mean that debtors often benefit from much lower interest rates, although be mindful that more interest will be paid overall the longer the debt exists.

Can I Repay the Debt Earlier than Anticipated?

Yes, you will almost certainly have the opportunity to pay back your homeowner loan early, but doing so will often incur an early settlement charge, which will be added to the balance at the time that a settlement figure is requested.

Career Development Loans from Shawbrook Bank

A good way to climb up the corporate ladder is by enhancing your CV with a postgraduate degree or similar qualification, but this can be quite costly.  It is estimated that a postgraduate degree costs an average £11k per annum.

A Career Development Loan is designed to offer postgraduate students assistance during their studies and they typically come with a more attractive interest rate compared to other loan products.

Professional Career Development Loans are where the Government pay the interest on your behalf for the duration of the course whilst you’re studying.  This means that you are not accumulating debt whilst attending your place of study.

The reason a Career Development Loan is better than a bank loan is that the Learning and Skills Council pay the interest for you whilst you’re studying. You can borrow as much as £10,000, although the final amount you are allowed to borrow is limited to 80% of your course fees, living costs and other expenses.

Commercial Mortgages from Shawbrook Bank

Commercial mortgages typically take over where business loans finish. Business loans up to £25,000 are usually unsecured, but for larger amounts many lenders need security to reduce the risk. Due to the administrative and legal costs of taking security on commercial property, it is typically considered highly uneconomic to borrow any amount less than £50,000 this way.

What Can Be Used as Security?

Most lenders take the property you are buying as security for the loan, which is normally 70% of what the property is valued at, and ask for a deposit for the balance of the purchase price. If you don’t have the cash available, you can usually offer the lender additional security, which is generally any other property you have substantial equity in, but this could also be other business assets such as shares or an insurance policy.

How Much Can I Borrow?

You can normally find a 70-75% mortgage for owner-occupied properties. If it’s an investment, then the amount you apply to borrow will be normally be determined by the rental income that is generated by the investment, but this will seldom exceed 65% of the purchase price. If you are buying a business that includes goodwill or stock, then the amount available will be further reduced.

Mortgage Calculator

A mortgage is a big financial commitment, so you need to know how much it’ll cost you and over what length of time. The best way of finding this out is to use a mortgage calculator which allows you to figure out exactly what your payments are going to be, whether you are moving house, a first-time buyer, re-mortgaging or applying for a buy to let mortgage.

Even if you’re an experienced investor or a first-time buyer, a mortgage calculator will help you find out the exact figures involved when deciding to sign up for a particular financing package.

An online mortgage calculator is a straightforward tool to use and will tell you within seconds how much the payments are going to be, based on how much you need to borrow, the mortgage term and the rate of interest. This useful tool is also referred to as a re-mortgage calculator or an APR calculator and works for different mortgages – ranging from first-time buyer mortgages to buy-to-let mortgages.

Be sure you’re aware that these results only offer a general indication of how much you are going to need because all mortgage providers have different ways of assessing how much you can borrow and the required repayments you will need to make in order to pay the mortgage off.

How to Apply

While many of the financial products and services provided by Shawbrook Bank can be applied for online, others require in-person meetings or telephone consultations. In any case, we can help you pinpoint and apply for the perfect product for your needs. Give a member of our customer support team a call today, or send us an email with an outline of your loan requirements.