The client required the funds to convert their six-bedroom guesthouse into three two-bedroom residential apartments.

The bridge-to-let loan — which will cover all refurbishment work costs — was arranged at 80% LTV day one over a two-year term, with the initial 12-month bridging part priced at 0.75% per month, followed by a 12-month BTL period at 4.49% per annum.

The borrower chose this option to avoid the need for a development exit bridge, while having the flexibility to transfer immediately onto the cheaper BTL term after finishing works, so they can test the market to either refinance or sell.

Zoe Morgan, commercial finance and banking adviser at South West Business Finance, who introduced the deal to Aspen, said: “I found dealing with Aspen and the underwriting team for this proposition a pleasure.

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“The lender worked with us to shape the resulting proposal to meet the client’s requirements, both in providing the level of funds needed for the project and also comfort with the options to exit.

“This satisfied the initial concerns raised and we were able to meet client’s expectations; nothing was too much trouble for Aspen to deal with and I will certainly be working with them again.”

Aspen launched its bridge-to-let product in February, which is 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.