Shawbrook launches short-term loan for investors

Shawbrook will be offering short-term loans between £150K and £2.5M for the purchase of residential and semi-commercial investment property, funding up to 65% of the purchase price.

Loans will have a minimum term of three months, and a maximum term of 12 months.

Loans will be priced at 7.45% above three month LIBOR, giving a current monthly interest rate of 0.7%.

There will be no early repayment change and Shawbrook will require seven working days’ notice of redemption, subject to a minimum three month period.

Loans will be distributed through Shawbrook’s accredited brokers.

Stephen Johnson, new business director of Shawbrook Bank, said: “Our new short-term loan will be the latest addition to a suite of commercial lending products, and we are targeting the professional property investor with a proven track record looking to take advantage of the buying opportunities that exist in today’s market.

“As with all Shawbrook’s lending products, our short-term loan will be distributed through our network of brokers.

“When we launched Shawbrook in October 2011 we committed to making it easier for businesses to borrow and brokers to make deals happen, we believe the introduction of the short term loan is a strong complement to our existing proposition.”