aspen bridging

Aspen launches bridge-to-let offering




Aspen Bridging has introduced a new bridge-to-let product designed to offer wider-use flexibility and lower ERCs.

The new option — open to UK and foreign applicants, including first-time buyers — offers loans up to £10m at maximum 80% LTV, with bridging rates starting at 0.64% pm and BTL rates of 4.49% per annum.

Terms run for either 18 months or two years, split equally between the retained bridging initial period and the serviced BTL.

However, the product gives borrowers the option to transfer onto the cheaper BTL phase after month seven or to extend the bridging facility if required, meaning the loan can react to how long a project takes to complete.

Once on the serviced BTL, the borrower has the time and the option to either refinance onto a longer-term BTL facility or to sell without heavy ERCs.

Aspen is targeting several key borrower types for this product, including those undergoing heavy-to-medium works cases or HMO conversions (with 100% works funding available) and those seeking development exits (offering no bridging ERC or minimum interest).

The lender 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 build rent roll and then refinance.

Jack Coombs, director at Aspen Bridging (pictured above), said: “Having launched the bridge-to-let product as a pilot from October last year, we are very excited to now be introducing it to the whole broker community. 

“We believe we are filling a true gap in the market here and are confident our new product will make up to 50% of our planned growth in 2022 and beyond.” 

Earlier this month, Aspen revised its existing bridging suite.

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