Aspen Bridging has entered the bridge-to-let market.
Available up to 80% LTV, with bridge rates starting at 0.64% pm and buy-to-let rates of 4.49% pa, the product is open to UK and foreign applicants, including first-time buyers, up to a maximum loan size of £10m.
Terms run for either 18 months or two years, which are split equally between the retained bridge initial period and the serviced buy-to-let.
Aspen is targeting several key borrower types including those undergoing heavy to medium works cases or HMO conversions (with 100% works funding available) and those seeking unrushed development exits (offering no bridge ERC or minimum interest).
The product is designed to provide borrowers with the flexibility to transfer onto the cheaper buy-to-let phase after month seven or to extend the bridge if required meaning the loan can react to how long a works project takes to complete.
Additionally, once on the serviced buy-to-let, the borrower has the time and the option to either refinance onto longer-term buy-to-let rates or sell without heavy ERCs.
Aspen says it 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 buy-to-let period giving borrowers time to either sell or to build rent roll & then refinance.
Jack Coombs (pictured), director at Aspen Bridging, said: “Having launched bridge-to-let as a pilot from October last year we are very excited to now be launching to the whole broker community.
“We believe we are filling a true gap in the market here and we are confident our new product will make up to 50% of our planned growth in 2022 and beyond.”