Shawbrook Bank has launched into the regulated bridging market with loans starting from 0.69% to 70% loan-to-value.
The two products, called RB1 and RB2, are designed for clients wanting to downsize and/or to avoid chain breaks, where for example the customer wants to proceed with a purchase even if the buyer of their property has withdrawn.
The RB2 product provides the option to carry out light refurbishment works on either the new property or the existing property to add value before sale.
Clients can borrow from £50,000 to £2.5m for a maximum term of 12 months, while interest is rolled up and repayable upon exit.
Karen Bennett, sales and marketing director, commercial mortgages, Shawbrook Bank, said: “Although the regulated bridging market is new territory for Shawbrook, the move is part of a natural progression following our success within the short-term loan market.
“After extensive research into this sector we wanted to provide a traditional finance solution for chain breaks and those looking to downsize. We have therefore created two bridging products for this specific target market and particular purpose.
“We’re always looking for ways to develop our offering in line with the evolving needs of our clients and brokers and our priority remains firmly focused on ensuring the best customer outcomes.”
Cases are judged on an individual basis based on the banks existing lending methodology.
The products are available to UK nationals with homes in England and Wales and can be accessed through Shawbrook’s broker partners.