"It allows us to make more funding available for clients to purchase opportunities and then cover all the improvement costs."
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.
For experienced property developers, who can show evidence of two recent successful projects, rates start from 0.59% pm with a maximum LTV of 75% and a maximum 75% total LTGDV.
For inexperienced borrowers, rates start at 0.74% up to 70% LTV and 70% total LTGDV.
The product changes are further enhanced by the creation of a specific underwriting team within the bridging division whose main responsibility will be to manage non-regulated bridging loan applications through a streamlined process.
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 developers 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.
Owen Bentley, head of bridging sales at United Trust Bank, commented: “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.”