Aspen Bridging has launched flexible loan extensions in a move designed to protect a borrower’s equity in projects that have been subject to unforeseen delays.
Working in close cooperation with the lender, customers will have the capacity to extend a loan for up to six months if serviced, and up to two months if non-serviced.
Jack Coombs, director at Aspen Bridging said: “There are two key considerations at play here. The sector is not working in the best interests of the client if penalties are added the moment a borrower goes over term, because ultimately how does this protect their equity and their ability to refinance?
“For a ‘flextension’ to be offered there has to be a good reason for the requirement and a credible exit must remain in place, and if these stipulations are met then it is in everyone’s best interests, including ours, to find a workable solution.
“The client always has to remain the foremost consideration in every transaction, that’s how you retain repeat custom and protect the long-term reputation of your business.”
Aspen Bridging has already made several product improvements in 2019.
In March the firm increased its maximum loan sizes up to £4m net for portfolios and £2m net on single properties. It also revealed new time-based service excellence targets, which shows that the company aims to take the majority of business from enquiry to completion in just three to 10 days.