Aspen enters bridge-to-let market
Aspen Bridging has entered the bridge-to-let (BTL) market with an innovative product designed to offer wider use flexibility and lower ERC’s than existing BTL or hybrid 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 £10m.
Terms run for either 18 months or two years, which are split equally between the retained bridge initial period and the serviced BTL.
Aspen is targeting several key borrower types including those undergoing heavy to medium works cases or HMO conversions (with 100% works funding available) and those seeking unrushed development exits (offering no bridge ERC or minimum interest).
The product gives borrowers flexibility to transfer onto the cheaper BTL phase after month seven or to extend the bridge if required meaning the loan can react to how long a works project takes to complete.
Additionally, once on the serviced BTL, the borrower has the time and the option to either refinance onto the best longer-term Buy-To-Let rates in the market or to sell without heavy ERCs.
Aspen’s aims to support developers working on heavier works or HMO conversion cases by reducing the amount retained upfront and ultimately removing the need for development exit bridging with the BTL period giving borrowers time to either sell or to build rent roll & then refinance.
Jack Coombs, director at Aspen Bridging, said: “Having launched Bridge-To-Let as a pilot from October last year we are very excited to now be launching to the whole broker community.
“We believe we are filling a true gap in the market here and we are confident our new product will make up to 50% of our planned growth in 2022 and beyond.”
The launch is the second major announcement this February, with Aspen recently announcing its 2022 rates and product card with a new Development Exit & Refurbishment product with up to 80% LTV for experienced developers with clean credit.
Aspen’s commercial and semi-commercial products, HMO and residential bridges all benefitted from a mixture of higher LTVs and lower rates, with Flat Rate products now available from 0.64% pm. The lender’s popular Stepped Rate continues to be available from 0.39% pm.
Applications remain open to UK and overseas borrowers, either individuals or corporates, for properties across England and Wales up to a maximum loan size of £10m.