Commercial bridging specialist justbridging.co.uk has launched a product which it claims holds the key to unlocking billions of pounds in property professionals’ portfolios.
John Davies (pictured), director at justbridging.co.uk, said: “Our research shows property professionals are equity rich but options poor. This is because prior to the financial crisis many had the foresight to take out tracker mortgages around just 0.5% to 1% above Base Rate.
“Understandably, the last thing they want to do is unlock the equity in their portfolios by remortgaging as this would significantly increase their overall borrowing costs. This can be extremely frustrating as they are unable to use their equity to take on additional properties or improve their housing stock.”
These frustrations have led justbridging.co.uk to introduce its PortfolioBuilder facility that provides flexible funding solutions from £10,000 to £500,000 for established property businesses in the UK that own at least one or more commercial properties, which includes buy-to-lets.
The PortfolioBuilder facility operates in one of two ways. Firstly, as a replica of a second charge bridging loan – but where a much higher than standard LTV is required. Secondly, as a replica to a normal bank overdraft which helps flatten out the peaks and troughs of late rental payments and can allow the release of funds to carry out repairs and improvements.”
Davies added: “We are a lender to the business model and not a property lender. We focus on how the business is being managed and who is managing it. This results in potential access to loans at significantly higher LTVs if security is taken over real assets.”