Shawbrook Bank has announced changes to its RI0 product for simple residential security.

Based on feedback from various broker partners since the launch of the product in July 2015, the commercial team has made changes to the RI0 product covering the use of deposit funds and a clarification around the credit history of the applicant for this product.

Upon launch of the RI0 product, it was a requirement that the deposit was funded from the client’s own sources. After studying this over the past six weeks Shawbrook has subsequently removed this requirement, allowing broker partners to follow the standard deposit criteria.

In response to a call for clarity around the client’s credit history as it relates to the RI0 product, Shawbrook is now able to define what it terms as ‘unacceptable adverse’ as follows:

• Unsatisfied CCJs within the last 24 months. However, where they are recently satisfied Shawbrook is able to discuss the circumstances to gain a better understanding of the clients position, but agreement will be on a case by case exception basis. CCJs over 24 months that remain current will require an explanation to be considered acceptable, and must be cleared prior to completion.
• Mortgage arrears are unacceptable regardless of when they occurred
• Business adverse within the last 36 months
• Unsatisfied defaults over £100 within the last 24 months

Shawbrook said these changes are designed to bring more clarity for broker partners across the bank’s policy, helping them to better service their clients.

Karen Bennett, sales and marketing director of commercial mortgages, said: “We strive to consistently shine a light on our own performance, responding to the needs of our brokers and making changes wherever possible to help them grow their business and deliver for the borrower.

“This change and the additional clarity provided around customers’ credit history is a clear indicator of our desire to promote transparency across our offering, and we plan to continue this using feedback from our broker partners and the market.”