United Trust Bank (UTB) has improved its ‘Heavy Refurbishment’ offering to support both experienced property professionals as well as those just beginning their property development journey.
The product changes are immediately available with slightly differing criteria depending upon the borrower’s level of experience. Heavy refurbishment projects include, for example, significant conversions and extensions, and change of use from commercial to residential and HMOs. Light refurbishment projects continue to be catered for on the Bank’s standard residential bridging product.
UTB has also created a specific underwriting team within the bridging division whose main responsibility will be to manage non-regulated bridging loan applications through a streamlined process, benefitting from a pragmatic and commercial underwriting approach.
Highlights of the new Heavy Refurbishment product include:
For experienced property developers
- Rates from 0.59% pm
- Maximum 75% LTV against day 1 value (NET of interest but including fees)
- Up to 100% of works costs funded
- Maximum 75% total LTGDV
- Must be able to show evidence of two recent successful projects
For inexperienced borrowers
- Rates from 0.74% pm
- Maximum 70% LTV against day 1 value (NET of interest but including fees)
- Up to 100% of works costs funded
- Maximum 70% total LTGDV
- Borrowers must be using suitably qualified contractors/professionals with demonstrable experience to complete the works
Borrowers can also benefit from the enhancements to UTB’s Fast Track and AVM criteria announced in the Spring. These were introduced to increase opportunities for brokers to recommend UTB’s bridging service to professional property developer and investor clients for standard and light refurbishment cases
The Bank increased its maximum LTV to qualify for its Fast Track and Hometrack AVM service from 60% to 65% and its maximum Fast Track loan size to £1m net. The maximum individual property value qualifying for a Hometrack AVM was doubled to £2m.
The increased maximum loan size of £1m (net) substantially increased the volume of cases brokers can now place through the Fast Track service, which when combined with Hometrack AVMs can give brokers instant pass/fail indications and allow them to produce their own terms and Decisions in Principle (DiPs) in minutes, 24 hours a day. The service enables brokers submitting ‘self-service’ applications to proceed quickly with greater speed, accuracy and certainty.
Owen Bentley (pictured), head of sales – bridging, United Trust Bank, said: “Since enhancing our Fast-Track and AVM criteria we have seen a significant increase in enquiries from brokers placing more business with a particular emphasis on customers buying and improving properties for resale or letting.
“Our new heavy refurbishment offering in addition, makes UTB’s overall bridging proposition even more attractive in a market that is seeing increasing demand for refurbishment projects. It allows us to make more funding available for clients to purchase opportunities and then cover all the improvement costs. And with a new streamlined non-reg application process and specialist underwriters and case managers driving deals through, we believe we have one of the best combinations of product, pricing and speed in the market.
“We are continually talking to brokers about what will help them write more business, so you can expect to see more improvements and enhancements to our products, terms and processes throughout the summer.”
