Afin Bank has launched a new regulated bridging proposition offering lending up to 80% LTV gross, designed for borrowers with time-critical funding needs, such as purchase before sale or sales delays.
Afin’s bridging product removes the pressure of monthly repayments by rolling up interest to be paid at the end of the loan. Interest is calculated on a daily basis and is not compounded, so customers pay exactly what is due when they exit.
Product features include AVMs up to 80% LTV; valuations based on open market value (OVM); dual representation; and title insurance and personal borrower status, including for customers with UK visas and limited credit footprint in this country.
Loans are available from £50,000 up to £3m with a 2% arrangement fee on the net loan size, not the gross loan.
As with all of Afin’s lending, each deal will be individually underwritten. Afin’s bridging loans are exit-dependent so the customer must complete a robust, defined and evidenced exit strategy to ensure repayment within the loan term.
The new bridging product joins Afin’s existing offerings of residential and buy-to-let mortgages for customers who may struggle to secure lending from mainstream lenders because of their circumstances, such as the self-employed and contract workers, people with complex incomes, qualified professionals, high-net-worth customers and foreign nationals with a UK work visa.
The new proposition is being led by John Smith (pictured), who has been promoted to head of bridging.
John said: “We looked at the needs of borrowers and especially those who are being poorly served by existing providers. What was clear is that they all wanted a common-sense approach to lending and timely decisions so they can fund their plans, whether that is short-term financing or light refurbishment before sale or refinance.
“Because bridging is a short-term facility, we also wanted to ensure customers could maximise their finances, so we are lending up to 80% LTV gross, providing access to funds to pay for refurbishments costs from day-one, and rolling up interest to be paid at the end of the loan rather than customers having to manage monthly payments.”
