Aspen overcomes obstacles to complete complex £2.1m Bridge-To-Let loan

16 January 2023

A last minute change of security properties and a deadline to refinance during postal strikes did not stop Aspen Bridging completing a £2.1m Bridge-To-Let (BTL) loan within three weeks.

The developer was nearing the end of their current Development Finance deal, but faced with a cooling market the client sought a bridging solution to complete the finishing touches and sell the newly-built detached six-bedroom house in Twickenham, London for maximum value.

Original security was based on two properties in Twickenham, however as the developer had a fixed low interest term mortgage on one of the properties, Aspen recommended a revised first charge loan using their No Valuation service on another unencumbered property in Surbiton, South West London to enable a better deal to proceed.

Approached by Matthew Archer, Director at Tapton Capital, Aspen also agreed to use a comfort charge on the original BTL to enable the rental coverage to be sufficient in order to get the customer the funds required.

Taking the case from start-to finish Saif Khalique, Senior Underwriter and Loans Manager at Aspen, proposed the Bridge-To-Let product to give the developer extra flexibility should they encounter any further issues.

The deal was completed at 70% LTV over a 24-month term, with the initial 12-month bridge on a flat rate of 0.89% pm followed by a 12-month BTL period at 6.49% pa.

The team also overcame several logistical problems caused by the postal strikes, coordinating solicitors and borrowers with Aspen’s recommended courier service to guarantee deadlines were met.

Matthew said: “Aspen understood the issues and swiftly restructured the loan, using their AVM service and organising rapid security visits to do so. They took a commercial approach throughout and both us at Tapton and our client could not be happier with the result.”

Aspen’s award-winning Bridge-to-Let product is designed to offer wider use flexibility and lower ERC’s than existing or two-year hybrid offerings.

Available up to 75% LTV, with bridge rates starting at 0.89% pm and BTL rates of 6.49% 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.