Afin Bank launches regulated bridging up to 80% LTV
Afin Bank has launched a regulated bridging proposition lending up to 80% loan to value (LTV) gross, designed for borrowers with time-critical funding needs.
It is aimed towards borrowers who need funds for instances like a purchase before a sale or a delay in sales.
John Smith (pictured), head of bridging at Afin Bank, said: “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 Bank’s bridging product does not require monthly payments. Instead, interest rolls over to be paid at the end of the loan. It is calculated on a daily basis and is not compounded, so customers pay exactly what is due when they exit.
Loans are available from £50,000 up to £3m with a 2% arrangement fee on the net loan size.
Afin Bank’s bridging loans are exit-dependent, so the customer must provide an evidenced exit strategy to ensure repayment within the loan term.
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Smith 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.”
