Aspen funds two bridging loans to save development project

Aspen Bridging has completed two bridging loans in one day — within 20 and seven days from applications — to help a developer with their next large-scale project.

The client originally applied for a £430,000 loan, secured against a £675,000 three-bedroom end terraced property, in order to purchase land for their next development scheme.

However, as the sale of a £465,000 two-bedroom flat on the same development in Chingford fell through, the borrower required a second £310,000 bridging loan to assist with the immediate cashflow issues.

Following discussions with Aspen’s head of sales Ian Miller-Hawes and senior underwriter Prabhat Talwar, both loans were completed on the lender’s no valuation product at 70% and 75% LTV, respectively.

The first facility was taken on a fixed rate at 0.79% over 12 months, while the second one was arranged on a stepped rate at 0.49% over a six-months term.

Both loans will be cleared by sale of assets.

Ian said: “What was already a fast-moving application took on a new dimension when the developer asked to add a second property to ensure there were no cashflow issues with the purchase of the new land.

“We discussed their requirements at length, and it was decided to keep the completions separate, so that loan one could operate as originally required, and loan two could be repaid as soon as the developer felt comfortable; this ensured payments were kept to a minimum.

“It is this flexibility and transparent advice that makes Aspen a truly dependable bridging lender, and our commitment to speed saves people’s projects.”

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