Afin Bank has launched a new regulated bridging proposition offering lending of up to 80% LTV gross.
The bank said the new proposition is designed for borrowers with time-critical funding needs, such as purchase before sale or sales delays and will be led by John Smith, who has been promoted to head of bridging at Afin Bank.
In addition to offering higher LTVs, Afin’s bridging product also rolls up interest to be paid at the end of the loan, with interest calculated on a daily basis and not compounded.
Other features include AVMs up to 80% LTV, valuations based on open market value (OVM), dual representation and title insurance and personal borrower status, including for customers with UK visas and limited credit footprint in this country.
Loans are available from £50,000 up to £3million with a 2% arrangement fee on the net loan size, not the gross loan.
John Smith (pictured), head of bridging, Afin Bank said: “We looked at the needs of borrowers and especially those who are being poorly served by existing providers.
“What was clear is that they all wanted a common-sense approach to lending and timely decisions so they can fund their plans, whether that is short-term financing or light refurbishment before sale or refinance.
“Because bridging is a short-term facility, we also wanted to ensure customers could maximise their finances, so we are lending up to 80% LTV gross, providing access to funds to pay for refurbishments costs from day-one, and rolling up interest to be paid at the end of the loan rather than customers having to manage monthly payments.”
Afin said its bridging loans are exit-dependent so the customer must complete a robust, defined and evidenced exit strategy to ensure repayment within the loan term.
