Reditum Capital will now offer LTVs up to 80% for selected ‘quality’ assets, up from its previous 70% LTV, and a reliance on 180 days as opposed to 90- day forced sale valuations.
The lender is also removing personal recourse as an overhaul of its approach to lending on deals below 60% LTV.
In addition, Reditum Capital has introduced a five-working day guaranteed timescale for the completion of transactions, once standard documentation has been received.
Tim Mycock, business development director at Reditum Capital, said: “These moves are disruptive but show that we understand the pressures facing our clients in getting deals completed. We are prepared to be fleet of foot in order to meet demands in an industry facing challenges.
“The real estate sector enjoys stability, but with the potential for a short term delay in market strength caused by the General Election, those trying to process new deals during this period may feel a hit.
“And that’s why we have opted to utilise 180 day RICS valuations instead of 90 day forced sale valuations and higher LTV’s for quality assets is a massive benefit for our customers. We are addressing a significant gap in the bridging finance market, which means borrowers can put less cash into the transaction, leverage the deals that need to be snapped up urgently and therefore, see a solid return on investment in the long run.”
