FREQUENTLY ASKED QUESTIONS

Why do you apply a stress to your income calculations?

Shawbrook takes our responsibility as a lender seriously so we apply a stressed LIBOR rate when calculating affordability.

We increase the level of the current Libor to ensure that, as interest rates rise and as the economy recovers, we are confident that your property will generate sufficient income to cover all of its expenses at that time.  As an investment, it is essential the property generates enough income to cover its costs.

Can I change my payment date?

Yes. We understand how important it is for you to manage your monthly incomings and outgoings and are happy to help by changing your payment date for you, as long as the change doesn’t extend the overall term of your loan.

Please bear in mind that it will take us 10 days to implement any changes to your payment date. 

There is no fee for this service, however if you move your payment date back to later in the month, there will be additional interest payable until your new payment date. This will be rescheduled over the term of your loan, unless you opt to pay the additional interest at the time you complete the date change. 

Can I borrow additional money from Shawbrook?

We would like to help you and your business succeed. If you have a loan with us and think there is additional equity in your property, or you have another property you would like to raise capital on, please get in touch with your original broker who managed your existing mortgage application for you and they will get the ball rolling with a new application. If you can’t remember your original broker or would like to call us for an informal chat, please give us a call on 03301 234 522

Can I have a copy of your tariff of charges?

Please click here for a copy. 

I want to sell/re-mortgage one of the properties mortgaged with you - can I do this?

This is an application we can certainly look at for you. We call this a Part Release application, as you are releasing part of the security for the loan.

How do I apply?
You’ll need to complete a Part Release application form and return it to us along with payment of our administration fee of £95. If you are releasing part of a single property title, we’ll also need a plan showing the property with the section you wish to release clearly highlighted. You can call us, write to us by post or email, or click here for an application form. 

What’s the process?
Once we receive your completed application form and the associated information, we’ll complete an initial review to determine whether we can consider your request, within 72 hours of receipt.

If we can consider the application, we’ll look at the value of the property you want to keep mortgaged with us and calculate how much we can continue to lend against it.

In some cases we’ll need one of our panel surveyors to complete a full valuation of the property you want to keep mortgaged to us. Instances include where you are splitting a title, if the property has changed since we completed your loan, or if you want to retain some of the proceeds. If this is needed for your application, we’ll let you know how much our surveyor will charge and obtain payment from you. If a surveyor is needed, it usually takes around 7 working days from payment of their fee to receipt of the valuation report.

In the majority of cases, releasing part of the security will reduce its value. If your loan balance is higher than the amount we would normally lend against the revised property valuation, you’ll need to pay the difference back to us. If your mortgage is subject to Early Repayment Charges, these will be applied to the amount you repay.

We’ll also need to check that you can still afford the remaining mortgage with us, so if the release will reduce the income you receive, we’ll need to assess your affordability.

If you’re releasing part of a title, our solicitors will need to review the formalities to make sure they are in order for our secured lending purposes. Our solicitors’ fees are usually circa £225 + VAT, though the actual amount will depend on the complexity of the transaction. Our solicitors usually complete their review within 48 hours of instruction. If there are any queries in relation to the formalities, our solicitors will raise these directly with your legal representative to ensure these are resolved as quickly as possible.

Is there a chance you will decline my application?
As with any application, there is the chance that your application could be declined. This is rare, however instances may include the property you intend to keep mortgaged to us is not suitable (by itself) for secured lending purposes, or the product you have will not allow the release.  

Can I move the mortgage to another property in my portfolio?

We can consider this application. An administration fee of £115 is payable at the start of the application, to help cover our costs in managing the request. 

The replacement property must be suitable security for your loan moving forward. The replacement property should have sufficient equity to support the outstanding loan balance. We will also need to understand how much income the property generates, to ensure adequate coverage of the mortgage payments going forward. We will require a full valuation of the replacement property by one of our panel surveyors. A valuation fee will be payable; the fee amount will depend on the security value, type and location. Once we have the replacement security address we will be able to confirm the surveyor fee amount to you.  If we can proceed, our solicitors will need to approve the formalities of the transaction. Our solicitors’ fee will be payable (£375 + VAT for freehold properties (plus disbursements) and £400 + VAT for leasehold properties (plus disbursements).

If this is something you would like to investigate, please don’t hesitate to get in touch with a member of the team.

I want to let my commercial property – what do I do?

Under the terms of your mortgage with us you’ll need our consent prior to agreeing to let your property. We will just need to make sure that the lease is on commercially acceptable terms, in line with market rental, and that the affordability for your loan will not be impacted. 

You or your chosen solicitor will need to forward a copy of the lease to us along with payment of our administration fee of £55 and our solicitors’ fee of £225 + VAT. We’ll then start our review.

If the proposed rental income doesn’t provide adequate coverage of your mortgage repayments, we will need evidence of additional income from you to ensure you can cover the shortfall.

How long will you take to complete an application for lease consent?
On average these complete within 7 working days.

You have a second charge on another property for additional security. I want to re-mortgage this property to another lender – can I do this?

This would be a Deed of Postponement application and this is something we can consider for you.

When your new mortgage provider completes your new mortgage, they will redeem your previous mortgage lender who will remove their first charge from your property. As a consequence, Shawbrook would become a first charge holder. The Deed of Postponement is an agreement between us and your new lender that provides our consent to your new lender taking a first charge on the property. Essentially, we agree to postpone our charge in favour of your new lender.

How can I apply?
We’ll need to hear from you or your solicitor with a copy of the new mortgage offer, the proposed Deed of Postponement, payment of our administration fee of £50 and payment of our solicitors’ fee of £75+ VAT. 

What is the process?
We’ll need to ensure that our position won’t worsen as a result of the re-mortgage. If you are borrowing more money OR are borrowing the money over a shorter term, we will need to be comfortable that there is still an acceptable level of equity in the property and that your ability to repay your loan with us is not reduced.

If you’re thinking of re-mortgaging a property we hold a second charge over, please notify us as early as possible.

What if my loan completed before January 2011?

If your loan completed before January 2011, you may be on a different version of LIBOR. If you think this may affect your loan, please contact us on 0345 848 0223.

I have a short term loan with you - can I extend it?

We can’t ordinarily consider an application to increase your loan term (unless there are exceptional circumstances that have caused your project to overrun). However, we will gladly consider a new application from you for a longer term mortgage product on the property. Give us a call on 03301 234 522 and we can work out the options that are available for you. 

I have a retention on my mortgage – how do I get this released?

A retention is held when there are essential works that are needed on the property. Your original Offer Letter will detail the works that are required and the terms on which the retention has been held.

Once you’ve completed the works you can simply give us a call on 0345 604 0989 and we’ll start the process of releasing your retention.

As mentioned in your Offer Letter, we will need to instruct a surveyor to visit the property and verify the works have been satisfactorily completed. We’ll also need to receive invoices from you to demonstrate the work you have had completed and the funds you have paid out. There’s no administration fee for this application but you’ll need to forward us payment of the surveyor fee prior to instruction.

Subject to our surveyor confirming the work has been satisfactorily completed and receipt of corresponding invoices, we will look to release the retention money directly into your bank account. If your account is in arrears, we will apply the funds to your account to clear these and release any remaining funds to you. 

I have a retention but don’t need it anymore – what do I do?

Just let us know – we can simply apply the retention to reduce your mortgage balance.

I want to borrow more money with another lender and secure this against the security property - can I do this?

This is an application we can consider from you. We’ll just need to make sure that the request will not reduce your ability to service your loan with us, and that the level of lending against the property will not exceed 75% of its value.

There’s an administration fee of £50 for this application. If you’re borrowing money from another company, we’ll need a copy of the Offer Letter from them together with confirmation from you of what you’ll be using the funds for. If the charge is needed to secure a loan for purposes not directly related to the security property or the business, we may not be able to approve your application.

I want to be removed from the mortgage – can I do this?

Unfortunately not - the mortgage was agreed on the covenant of all current borrowers. 

The customer(s) who wish to remain in ownership of the property can apply for a new mortgage with us in their sole name(s). Any new application will be underwritten on the strengths of the customer(s) to remain only and usual application fees will apply.

If this is an option you would like to consider you can contact your original broker who acted for you on your current mortgage. If you can’t recall your original broker or would like to speak to a member of the team, please call us on 0345 604 0989.

I have a limited company loan - can I transfer the loan to another limited company?

No, loans are not portable between companies, even if that company is related. If you want another company to have the mortgage, they will need to apply for a new loan with us as a property purchase.

I’m leaving my Limited Company - will you release me from the guarantee?

This isn’t a request we can consider as the mortgage was agreed on the strength of covenant provided by all guarantors. The obligations under the guarantee are tied to the individual and will remain in place until the debt is fully repaid, even if the individual leaves the company.

We can only consider releasing any guarantor if a like for like replacement is proposed. The replacement would need to be a director of the company, have at least the same level of experience within the business sector and be in a financial position at least equal to the original guarantor. 

I want to apply for planning permission to change/develop the property - can I do this?

Under the terms of your mortgage we’ll need to consent to any planning application prior to submission to the local planning authority. We’ll also need to consent to the development works before they start. 

If you are looking to significantly change or develop the security property and we were not aware of this when we agreed to your loan, it may not be something that we can agree to, as the value of your property may change throughout the development. To change/develop the security would pose a greater risk to us as a lender than was agreed to under the terms of our original Offer Letter. 

As a starting point we’ll need to understand how you propose to fund the development, how you’ll continue to make your monthly payments on your loan with us, and any effects on the value of the security property, both in the development stages and if the development were completed.

If you are thinking of applying for planning permission, please call us on 03301 234 522 to discuss your proposals.

Can I take a payment holiday?

We don’t offer payment holidays on any of our loans; you’ll need to make your payments by Direct Debit each month as they fall due.  

If you have experienced a change in your circumstances or are worried you may have difficulty making your monthly repayment, please call our payment helpline on 0345 848 0227.

Can I make an overpayment?

You can make an overpayment on your loan with us at any time. There is no minimum or maximum amount you can overpay, however for some of our products you may incur an Early Repayment Charge on the amount you repay if you pay off more than 10% in a 12 month period. Please check your Offer Letter for confirmation of whether Early Repayment Charges apply to your loan.

You can either pay a lump sum, or increase the amount you pay each month for a set period of time. If you’re interested in making an overpayment, give us a call on 0345 848 0223 and we can talk you through the payment options.

Can I redeem my loan early?

You can pay back your loan with us at any time. For some of our products, you will incur Early Repayment Charges if you pay your loan back before the agreed end date of the loan. Please check your Offer Letter for confirmation of whether Early Repayment Charges apply to your loan.

If you are interested in redeeming your loan with us, you can call us on 0345 848 0223 to request a redemption statement. Your redemption statement will be free of charge although any subsequent redemption statements requested within 12 months of this request will incur a £25 charge.

I want to vary a commercial lease that has been previously approved on my property - can I do this?

Any proposal to vary a lease will need our consent under the terms and conditions of your loan with us. We’ll need to receive a copy of the legal documentation, confirmation of what is being varied and why, and payment of our solicitor's fee. Our solicitor's fee will be £95–£150 + VAT, depending on what is being varied.  We’ll need to ensure that the variation doesn’t pose any additional risk to the security or to your ability to maintain your monthly repayments. We’ll also need payment of our administration fee of £55. 

I have a leasehold property mortgaged to you and want to extend my lease - will you consent?

We will just need to ensure that the legalities are in order but usually, this is an application we would approve. We’ll need payment of our solicitor's fee of £150 + VAT and our administration fee of £55. Once we receive the legal documentation from your solicitors, we’ll start our review.

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3 MONTH LONDON INTERBANK OFFERED RATE (LIBOR)

 

0.30%

From 1 July 2017

Please note that Shawbrook Bank applies a minimum rate of 0.75% to the term rate margin.

If your loan completed before January 2011, you may be on a different version of LIBOR. If you think this may affect your loan, please contact us on 0345 848 0223.

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