Shawbrook Bank has introduced a 95% loan to value secured loan product designed for employed homeowners with loan sizes ranging from £3k to £25k.
The new product will open up the secured market to a growing number of individuals looking for re-mortgaging alternatives and offers brokers more opportunities to complete deals.
Maeve Ward, head of sales of secured lending at Shawbrook Bank, said: “We’re very proud of the impact we made in the secured lending market last year and are delighted to introduce a new product which the sector was crying out for.
“We were aware that some homeowners were being hindered by a lack of LTV lending options but this product will really open up the market to them.”
Shawbrook said the enhanced LTV changes are based on feedback from brokers and the bank hopes this innovation will encourage other lenders to lower rates and increase LTV levels prompting an increase in competition.
Dave Pinnington, business development director at V Loans, said: “Only in its second month and 2013 has already unveiled some ground breaking changes – changes not seen since the credit crunch and one thing is certain today’s announcement will redefine the role the secured loan lender plays in the mainstream lending market.”
As with all Shawbrook’s secured loan products the bank allows monthly or lump sum overpayments without penalty, and can be used for a range of purposes including home improvements, holidays, educational fees and restructuring their finances into monthly affordable payments.