Aspen Bridging has reported June 2020 to be one of its best months on record, approving £294m of deals across 382 cases.
The figures are up from £107m across 219 cases in May 2020, representing a 175% and 74% increase respectively, while the business also achieved even greater growth of 301% in new lending month-on-month.
The average deal size rose to £770k from £488k, the increase being trackable to when Aspen increased its top loan amount to £3m net at the end of May.
Aspen says its performance is down to a number of further factors including an increase in its maximum LTV to 75%, the reintroduction of its medium refurbishment and commercial product ranges and a 0.59% per month interest rate.
It has also cited its decision to lend and adapt throughout the Covid-19 crisis as a key contributory factor in creating broker trust, as many other lenders funded by mainstream and private-equity lines withdrew from the market or minimised their product offering.
Jack Coombs, director at Aspen said: “Clearly this is an excellent increase in approvals, enquiries and new lending, supported by the attractiveness of the new product range and by the increase in appetite from investors and property professionals to take on new projects as lockdown eases.
“Furthermore the major improvement in conversion and completion ratios shown in the much higher new lending figures, up 301%, just demonstrates both the increased willingness of borrowers to really progress deals and the strong appetite Aspen has for new business.
“Lenders who are low geared or equity funded like us will continue to reliably operate and offer brokers and customers a credible lending service, and by continuing to lend when others vacated the market we have substantially strengthened our reputation and market share.”
Aspen’s rate card has a maximum LTV to 75%, which can be realised through both physical and desktop valuations, and a top loan amount of £3m net.
The lender’s flat and stepped rate products include residential and light refurbishment, residential and medium refurbishment, HMOs, prime semi-commercial and prime commercial property.
The equity-funded lender further streamlined their processes during Covid-19, with full remote capacity and same day pay-out facilities.