The customer can fill the whole of the term with the fixed period, for example a 3-year term can be matched with a 3-year fix, or they can have a longer term with an initial fixed rate period. In the latter case when the fix expires rates return to a standard variable rate based on 3-month LIBOR.
Fixed rates currently stand at 5.90% above 3-month LIBOR for 3-year large residential investments, while they amount to 8.61% for 5-year commercial mortgages.
Rates are re-priced monthly, while the latest increases will be emailed to Shawbrook’s panel of broker partners monthly and also made available on its website.
Karen Bennett, sales and marketing director of commercial mortgages at Shawbrook Bank, said: “We are delighted to offer our fresh approach to our brokers and their clients with the addition of fixed rate options.
“We understand the value of predictability that fixed rates offer and also the importance of clear pricing for property professionals and SME clients.
“We are confident that a fixed rate option will strengthen our brokers’ offering at a time when payments stability is in high demand.”