Historically, the Bank approved a Short Term Loan to overrun where the customer had completed on their objectives for the property, but the sale/ refinance had fallen after the original loan expiry date.
Karen Bennett, Sales & Marketing Director for Shawbrook Commercial, said:
“We felt that penalising customers on this basis was not a strong outcome and have consequently removed this 3% margin as a matter of policy across all new STL business offered from Wednesday 21 October 2015 onwards. Whilst an overrun is still a breach of the loan agreement and should be avoided wherever possible, we are aware that there may be mitigating circumstances and in keeping with our pragmatic approach to lending - we are happy to be flexible.”
Shawbrook has dedicated significant resource throughout 2015 to improving its proposition in terms of flexibility and cost, and say this development will be a significant one for the STL borrower.
