Benefits include the facility to make monthly or lump sum overpayments without penalty and an early repayment notice period of only 28 days with a £195 fee, meaning clients are free to pay down or pay off at any time.
Maeve Ward, head of sales and secured lending, at Shawbrook, said: “We have listened to feedback from our partners and increasing our loan size was one of the requests that we considered.”
Brightstar Financial’s director of secured loans, Bradley Moore, believed that the timing of Shawbrook’s announcement could not have come at a better time.
He said: “We are getting a lot of calls from brokers used to remortgaging clients who need to raise capital and keen to help clients either locked into their mortgage or facing the loss of their interest only status if they move to a new lender.”
Moore said Shawbrook’s secured loan facility, with its increased loan size, will enable brokers’ clients to raise capital without being tied into a fixed term due to the flexible nature of the product.
He added: “I can see second charge lending becoming an increasingly viable option to remortgaging, with products like this being made available to help clients caught in the mortgage trap.”