The new proposition was designed to provide finance to cover the VAT on property purchases.
Borrowers can obtain term sheets online on Adsum’s website by inputting the advance amount required and the anticipated completion date of the property purchase, after which the client can opt for either an upfront or deferred fee funding option.
If choosing the upfront fee funding option, the client will be asked to pay the deposit to cover Adsum’s legal fees, and once the loan is approved and ready to drawdown, the remaining 2.5% facility fee and 60-day interest will be pre-charged upfront.
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The client will then receive 100% of the VAT on completion, at an interest rate of 0.75% per month.
Mike Underwood, head of origination at Adsum (pictured above), said: “We listened to feedback from brokers in the sector, who told us clients want not only to completely cover the VAT on practical completion, but also lower rates more in line with traditional bridging and to be able to book in the deal upfront – meaning that it’s all confirmed and one less thing to worry about.
“Our proprietary technology and client onboarding process allows us to offer this with just a few clicks, as well as increasing broker fees to the best in the market.”
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