Tuscan Capital

Tuscan launches commercial bridging offering

Tuscan Capital has entered the commercial bridging market after securing a new funding facility.

The business confirmed that it has renewed one of its original institutional funding facilities and has agreed a new private funding partnership, resulting in Tuscan Capital now having access to multiple funding channels.

Consequently, the specialist lender has introduced its first-ever product dedicated to property landlords and developers operating in the commercial sector.

Previously, Tuscan Capital focused on residential, semi-commercial, HMO, and mixed-use bridging, but it now has the appetite and capacity to reach and serve a new broker/client demographic.

The new commercial product offers qualifying borrowers:

  • up to 65% LTV (exceptions apply)
  • from £100,000-5m
  • from 3-18 months 
  • for purchase, refinance or capital raising
  • retail units, office units, warehouses and industrial premises
  • land with planning as supporting security (land element up to 55% LTV)
  • assets of non-standard construction (up to 55% LTV)

Colin Sanders, CEO at Tuscan Capital (pictured above), said: “Our new wider lending proposition has been made possible through our access to multiple funding channels which are distinct from the rest of the market. 

“Our funding partners complement one another as they have different and differing risk appetites. 

“This gives us the flexibility to consider business which would not typically tick the boxes of institutional funders, and allows us both to price competitively for risk while taking a realistic, commercial approach where the quality of the deal justifies it.” 

The commercial bridging facility is expected to be one of many enhancements being rolled out by the finance provider this year. 

Other improvements include:

  • a sharpened appetite for larger loans (£3m-10m) where multiple properties and/or portfolios are being acquired
  • greater criteria flexibility across the existing range of light and heavy refurbishment, mixed-use conversion, and developer-exit products 
  • a new 2-3-year term facility for existing borrowers 

The new ‘stabiliser’ facility is a 2-3-year term product for clients who have finished their refurbishment projects but need to repay their bridging loan while they prove their rental model (by stabilising the rental yield), ultimately enabling them to refinance with a high-street BTL provider.

The stabiliser offering is only available to existing Tuscan Capital bridging borrowers.

Features of the stabiliser product include:

  • term for 24 or 36 months
  • up to 70% GDV (with equity release allowable)
  • interest to be fully-serviced monthly from the rental income
  • rates from 0.575% per month

“Having enjoyed a stellar 2021 and building our loan book beyond all expectations, we head into 2022 with a significantly enhanced proposition and a strengthened operational team to support it,” Colin added.

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