Previously customers were charged 0.95% of the loan amount, but the bank decided that this was acting as a deterrent for customers wishing to retain funding with the bank.
Rules around refinancing have also changed, as before there was an arrangement fee of 1.95% for short-term business and 1.50% for term business, but this has now been changed to a flat rate fee of £895 regardless of the loan size.
Karen Bennett, sales and marketing director of commercial mortgages at Shawbrook Bank, said: “This change is part of a focus on customer outcomes that we are determined to embed within the culture at Shawbrook.
“These changes and the ongoing improvement of our proposition is evidence of the Bank’s commitment to achieving this goal.
“Naturally, we expect that these fee changes will be warmly welcomed by our brokers and their clients, with the re-structure resulting in potentially significant savings.”
