Aspen has increased the market size of its bridge-to-rent product by introducing a combined term of up to five years, and has reduced rates for both the initial bridge and buy-to-rent (BTL) periods.
Photo by Edward Moss. All rights reserved. S&U Solihull
Applicants can now opt for a bridging or development loan of up to 24 months, followed by a BTL that can run for up to three years.
The product can be used to support major renovation, land development or a quick purchase by UK and overseas nationals. An initially maintained bridge precedes a maintained BTL with low ERCs.
Associated bridging rateThere are s available at 0.74% per month and development rates of 0.79%, both recently reduced by 60 basis points, followed by BTL at 6.89% per annum, also reduced by 35 basis points.
The loan is fully underwritten in advance and uses a single facility letter and a single initial valuation for both elements, with the lender also offering Docusign and a search fee to simplify the legal process.
The maximum loan size is £15 million with LTVs of up to 80% and the product is available to finance residential, semi-commercial and commercial properties in England and Wales.
Commenting on the launch, Jack Coombs S&U chief operating officer (parent company of Aspen) said: “We are excited to launch our new five-year Bridge to Let and we are confident that the longer term and reduced rates will be welcomed by real estate investors, developers and their agents.”