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REGULATED BRIDGING


Shawbrook Bank offer highly competitive rates with our Regulated Bridging Mortgage offering. This provides a simple, no-nonsense framework which sets us apart from the high street banks and other providers. Our case by case, personal approach has helped over 2000 customers and we are delighted to have these products as an enhancement to our existing offering.

What is a “Regulated Bridging” Mortgage?

A mortgage product that is widely used in the market with its primary purposes being to cater for what are termed as ‘chain breaks’, and/or downsizing.  It provides for the scenario where a customer does not want to run the risk of losing a desired property because of an unforseen delay in selling their existing property. They purchase on a regulated bridge and secure the property, sell their existing property, and then pay down the regulated bridge.

SCENARIO 1:
Geoff & elizabeth jones, retired teachers

Mr & Mrs Jones have owned their house for 25 years. Their three children have flown the nest and they want to downsize as the property is now too big for their current needs. They find their dream cottage that requires some light refurbishment before they can move in but they do not want to wait for their existing property to sell as they may lose out to a rival homebuyer. 

They spread the finance across both properties (finance is secured against the sum of both values) allowing them to benefit from a lower LTV (Loan to Value).

They complete the sale of their existing property six months later, pay down the regulated bridge and are happily settled in their new home and their brand new kitchen without the worry of waiting nervously through numerous property viewings and estate agent promises.

SCENARIO 2:
JOHN & KIRSTY SMITH, YOUNG MARRIED COUPLE

John and Kirsty have been married for three years and have started planning on having a family. Their existing two bedroom semi-detached property is now too small and they wish to make the jump to a bigger property in an area closer to the desired schools. They find a four bedroom place that fits the bill and want to move quickly. However, their property is tied up in a long chain and they do not want to run the risk of losing the new property.  

They decide to speak to their mortgage adviser and agreed to apply for a regulated bridge that would plug their short term need for finance. The lender advances them the loan and rather than having to risk their chain collapsing they are able to secure their dream family home within 2 weeks, Their existing two bed property sells quickly and having secured a mortgage on their new home, they use the funds to fully repay the regulated bridge with no early repayment charges. 

Regulated bridging is definitely something customers should enter into with their eyes open and with a clear view of how they are going to repay this short term debt (also known as an exit strategy). 

Confidence in the fact that your property will sell within the desired timeframe is crucial and research to this effect is important.  Shawbrook would always recommend that you speak with an independent professional mortgage adviser to ensure that a regulated bridging loan is the right type of finance for you.

Shawbrook Regulated Bridging Mortgage products:

We have two products available that have highly competitive rates. As with everything Shawbrook does, we like to keep things simple and operate on a case by case basis. We are not a tick box lender and will assess your case according to your circumstances. 

Our products:

1/ The customer wishes to buy a property and carry out light refurbishment works (on the new property, or on the existing property to enhance value pre-sale). 

2/ The customer wishes to buy a property with no refurbishment works planned.

Product Highlights:

  • Rates from 0.59%pm to 0.73%pm
    • Up to 70% LTV
    • Loans from £50k to £2.5m
    • Maximum term of 12 months 
    • No minimum term and no early repayment charges
    • No minimum interest 
    • Interest is rolled up (Repayments are payable on exit)
    • Complete transparency at every stage – no unexpected rate increases or fees

If you would like to discuss these products in more detail, please contact your regulated mortgage broker. If you do not currently deal with a broker, please feel free to contact the Shawbrook team on 03301 234 521 or email us by clicking here and we will be able to put you in touch with an approved broker in your area. 

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3 MONTH LONDON INTERBANK OFFERED RATE (LIBOR)

 

0.35%

From 1 April 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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