Its new BTL product provides flexibility for borrowers
Aspen Bridging has provided a £557,500 light development bridge-to-let (BTL) loan to a developer seeking cost-effective options for their latest project.
The client, who owns a six-bedroom guesthouse in Bath which they want to convert into three two-bedroom residential apartments, has chosen Aspen’s new bridge-to-let product that ultimately gives them maximum flexibility across the term.
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. They also had the flexibility to transfer immediately on to the cheaper BTL term after finishing works so they can test the market to either refinance or sell.
The loan was completed at 80% LTV day one, 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), found dealing with Aspen and the underwriting team for the proposition a pleasant experience.
“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 comfort with the options to exit,” Morgan said. “This satisfied initial concerns raised and we were able to meet client’s expectations.”
Aspen launched its bridge-to-let product in February, which is designed to offer wider use flexibility and lower ERCs 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 £10 million.
Terms run for either 18 months or two years, and are split equally between the retained bridge initial period and the serviced BTL.
