Previously the lender approved a short-term loan to overrun where the customer had completed on their objectives for the property but the sale or refinance had fallen after the original loan expiry date.
Karen Bennett, sales and marketing director for Shawbrook Commercial, said: “We felt that penalising customers on this basis was not a strong outcome and have consequently removed this 3% margin as a matter of policy across all new short-term business offered from 21 October 2015 onwards.
“Whilst an overrun is still a breach of the loan agreement and should be avoided wherever possible, we are aware that there may be mitigating circumstances and in keeping with our pragmatic approach to lending - we are happy to be flexible.”
Shawbrook has dedicated significant resource throughout 2015 to improving its proposition in terms of flexibility and cost.
