Due to current market conditions, Tiuta has taken the prudent decision to suspend its 75% loan-to-value range and temporarily withdraw its Refurbridge and Underbridge products.
The move follows several high profile departures from the buy-to-let market which means that even some professional buyers may struggle to refinance, despite having purchased a property at a significant discount to its market value.
Tiuta advises that the current market for the professional investor is very strong and it is confident that buy-to-let and commercial lenders will return. However, it must ensure that all buyers have a viable exit route post purchase and is therefore reflecting in its lending criteria what is happening in the broader market.
Tiuta will continue to offer bridging finance for loans up to 70% loan-to-value based on open market value and with a maximum loan value of £2m.
Gary Booth, CEO of Tiuta, said: “We are obviously very disappointed to have to reduce our LTVs and suspend two of our most popular products, Refurbridge and Underbridge. Sadly, this is not a reflection of a deteriorating market as many of our professional buyers are capitalising on some very significant opportunities. However, it is not commercially in our clients, or Tiuta’s interests, to offer finance when there is not a clear exit route.”
