Aspen 80% LTV Bridge-To-Let loan creates cost-effective options for developer
A developer seeking cost-effective options for their latest project has chosen Aspen Bridging’s new Bridge-To-Let (BTL) product, which ultimately gives them maximum flexibility across the term.
The client owns a six-bedroom guest house in Bath which they want to convert into three two-bedroom residential apartments.
Taking advice from the introducer they chose the product for heavy refurbishment bridging with a one-year BTL period to avoid the need for a development exit bridge, while having the flexibility to transfer immediately onto the cheaper BTL term after finishing works so they can test the market to either refinance or sell.
The £557,500 light development Bridge-To-Let loan was completed at 80% LTV day 1 plus commitment to fund 100% of works costs, over a 24-month term, with the initial 12-month bridge on a flat rate of 0.75% pm followed by a 12-month BTL period at 4.49% pa.
Zoe Morgan of South West Business Finance (SWBF) said: “I found dealing with Aspen and the underwriting team for this proposition a pleasure.
“They worked with us to shape the resulting proposal to meet with the client’s requirements, both in providing the level of funds needed for the project and also comfort with the options to exit.
“This satisfied initial concerns raised and we were able to meet client’s expectations. Nothing was too much trouble for Aspen to deal with and I will certainly be working with them again.”
Aspen launched its innovative Bridge-To-Let product in February, which is designed to offer wider use flexibility and lower ERC’s than existing or hybrid named offerings.
Available up to 80% LTV, with bridge rates starting at 0.64% pm and BTL rates of 4.49% pa, the product is open to UK and foreign applicants, including first-time buyers, up to a maximum loan size of £10m.
Terms run for either 18 months or two years, and are split equally between the retained bridge initial period and the serviced BTL.