Shawbrook Bank is reducing rates across selected second charge mortgage products. 

This move bucks the wider mortgage trend of rising rates, and will see changes applied to products with an 85% LTV. 

Rates will now start from 6% on loans from £5,000 to £150,000 at this LTV band. Rate cuts will applied to both variable and fixed rate options.

These reductions mean the variable rate option is now priced at 6%, down from 6.45%. The two-year fixed rate product will charge 6.25% (previously 6.8%) with a five year fix at 6.3% (previously 6.85%). 

Rates on second charge mortgages up to 75% LTV remain the same. However Shawbrook is also launching a new limited edition five-year fixed-rate large loan. This will charge a rate of 4.55% on loans over £100,000, up to 75% LTV. 

As well as these rate enhancements, Shawbrook is also simplifying its second charge mortgage lending criteria, by easing requirements for documentation and simplifying income criteria.

Shawbrook head of bridging and second charge Gavin Seaholme says these changes underline the bank’s commitment to provide a competitive second charge proposition. 

He says: “We are making the process from application to completion as straightforward as possible for brokers and customers.  We have open channels of communication with our customers and key broker partners from which we have been able to evolve our proposition and make changes with them in mind.”