Shawbrook’s Commercial Mortgages division is entering the heavy refurbishment arena with the launch of a new short term finance product, STL6.

Following broker feedback, the STL6 has been designed for clients wishing to purchase a property then add value to their investment by undertaking heavy refurbishment works. These works might include loft conversions, internal reconfigurations or changes of use, and are defined as those works requiring more than 15% of the current property value to carry out.

Further product details:

• 0.89% per month pricing up to 70% LTV (based on MV not GDV)
• Terms up to 18 months – no minimum interest, or minimum term
• Repayment options of fully serviced, part serviced-part retained or fully retained

Should the client then wish to hold onto the property for rental purposes rather than selling-on, they have the option of switching to a term loan with Shawbrook, which will be eligible for the existing client discount.

Shawbrook says it will focus considerably on the short term loan (STL) market during 2014 and will bring out a range of new products, improve existing criteria and processes and review pricing.

Karen Bennett, sales and marketing director for commercial mortgages at Shawbrook Bank, said: “We know from our brokers that they see a real demand for this kind of finance, so we’re really excited to be able to respond to that feedback and support them with the addition of STL6 to our range.

“Last Autumn we created our dedicated STL desk and are pleased to have completed over 100 deals since then. But this isn’t enough for us. We see this move as further evidence of our commitment to the STL market, and this is just one of the many initiatives we have up our sleeves. We want to set the standard in the short term finance arena, as we have in the commercial mortgages market.”

As well as expanding Shawbrook’s STL range, the introduction of STL6 has been accompanied by the clarification and refinement of the bank’s existing short term products STL4 (Residential Light Refurb) and STL5 (Mixed Use Light Refurb).