Ultimate Finance revamps bridging range

Ultimate Finance has today (23rd November) launched a refreshed residential bridging finance offering to support property investors and developers post-CBILS.

The lender has cut its rates to now start from 0.89% per month and increased its LTV to 75%.

The suite of products introduces new residential variants designed around the borrower’s requirements for:

  • property purchase
  • development exit 
  • development finish and exit
  • refurbishment
  • re-bridge and other forms of refinancing.

Ultimate Finance is also offering equity release options on development finish and exit and refurbishment projects upon formal completion, allowing redeployment of capital. 

Josh Levy, CEO at Ultimate Finance (featured in the video, above), said: “Back in March, as lockdown began, we took the decision to reduce our maximum LTV, and we are pleased to reintroduce the ability to go up to 75% on deals of up to £2.5m, alongside across-the-board price reductions.

“Building on the success of our CBILS bridging offering, with over £150m of applications received in the first week alone, we’re looking to build on our record year of new business and ensure we have the solutions to meet the needs of clients and brokers in the months ahead, as Covid-related uncertainty continues and government support schemes unwind, including the stamp duty holiday.”

Liam Cavanagh, head of bridging finance at Ultimate Finance, added: “The property financing market remains constrained, and we’re committed to using our bridging finance to fill the gap and make up for reduced lending appetite elsewhere through the quick provision of funding.  

“Our new equity release offering is specifically designed to help developers or landlords nearing completion on projects, to release capital tied up in the project and purchase their next property, which is not readily available in the market right now.”

“We’ve been taken aback somewhat by the level of demand for CBILS,” Josh told B&C when asked how much Ultimate Finance had lent so far through its CBILS bridging offering.

Its development exit product was accredited by the British Business Bank in July, which Josh explained has been used solely as a refinancing tool.  

“By the end of this year, across our total CBILS and non-CBILS range, we would have done somewhere between £50m-60m of new business, which is about double what we did in 2019.

“A fairly significant chunk of that will be CBILS.”

B&C asked Josh how he thinks Ultimate Finance has been able to achieve this record level of business and adapt during the crisis.

He explained that it had a strong pipeline in Q1 and was able to deliver on a lot of those cases before the end of March.

Ultimate Capital also remained lending throughout the first lockdown, and CBILS had “boosted” its balances.

“Clearly, a big part of what any lender does is not just getting money out the door, it’s how you work with your clients once they are onboarded,” he noted.

He explained it had around £8m-10m of redemptions that were expected in the spring, but were delayed or cancelled due to the vast majority needing to be facilitated by some form of refinance.

“That reflects where the market has been for refinancing,” Josh said.

“So, we’ve had to work doubly hard with our clients this year to support them.”

He highlighted that this had been a joint effort between Ultimate Finance and its brokers.

“Never before has the broker-lender community come together so strongly to support clients, and I think that needs to be something that maintains through next year and beyond.”

Next week, Ultimate Finance will be launching a broker application portal, which will act as another way to support brokers.

You can watch the full interview, where Josh discusses the key USPs of the new product range and his thoughts on the commercial real estate market next year, below.

Ultimate Finance is holding a webinar on Thursday 26th November at 09:30am to take brokers through the full product offering and criteria. 

Brokers can register to attend here.

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