Shawbrook Bank has unveiled a 95% LTV secured loan product designed for employed homeowners.

The lender believes its new product will open up the secured market to a growing number of individuals looking for re-mortgaging alternatives and offers brokers more opportunities to complete deals.

Loan sizes range from £3,000 to £25,000. As with all Shawbrook’s secured loan products, the bank allows monthly or lump sum overpayments without penalty, and can be used for a range of purposes, including home improvements, holidays, educational fees and restructuring their finances into monthly affordable payments.

Maeve Ward, head of sales, secured lending at Shawbrook Bank said: “We’re very proud of the impact we made in the secured lending market last year and are delighted to introduce a new product which the sector was crying out for.

“We were aware that some homeowners were being hindered by a lack of LTV lending options, but this product will really open up the market to them.

“Our aim is always to be one step ahead of the curve and this product is a first for the market. We value the relationships we share with our broker partners and we will continue to work closely with them this year to enhance our product range, making sure that our offering and services suit the needs of the market and offer real value.

“These changes illustrate our ambition to make Shawbrook the lender to follow in 2013 and we have many more product developments to follow in the coming months, so watch this space.”

Dave Pinnington, business development director of V Loans, added: “It’s great to see Shawbrook being the first lender to break the 90% LTV barrier and head-up the market with a product that will significantly benefit both broker and borrowers alike.

“Shawbrook have dared to go where most mortgage lenders fear to and today’s decision should serve to fill a huge gap in the market where LTV’s above 90% are either not available or extremely difficult to obtain through mainstream lenders.”