Shawbrook Bank has reduced its arrangement fees across all of its term products offered through its commercial mortgages division from 1.7 per cent to 1.5 per cent.
Based on a loan of £350,000, for example, the new reduction will mean clients will make a saving of £700.
The reduction is applicable to any existing cases where a formal mortgage offer has not been made, and is also available on all new Shawbrook applications with immediate effect.
The arrangement fee, after deducting the commitment fee paid at the point of mortgage offer, is added to each loan. This fee is added outside of the published product loan-to-value limits.
Karen Bennett, sales and marketing director for commercial mortgages at Shawbrook Bank said: “The reduction of our arrangement fees, alongside the additional clarity we are providing across our product range, is part of our ongoing dedication to improve our product line for our broker partners and their clients.
“Our unwavering commitment to the broker market remains and we pride ourselves on our pragmatic approach to lending to ensure good customer outcomes, as this reduction demonstrates.”
Last month, Teachers Building Society lowered the arrangement fee on its 95 per cent and 90 per cent LTV mortgages to £899.
ruth.gillbe@ft.com
