Specialist mortgage lender Aspen Bridging has released a series of rate reductions following an overhaul of its sourcing system.
Currently, the company provides both a low rate product for clients who may require an early exit from their policy, and a flat rate product for those looking at a full-term product.
The low rate deal has now dropped from 0.90 per cent to 0.85 per cent per month for the first five months of the loan with loan-to-values of up to 80 per cent, while its secondary period rate for any remaining months has been slashed from 1.5 per cent to 1.25 per cent. In comparison, the flat rate product has been cut from 1.20 per cent to 1.09 per cent. Aspen will also let its representatives set rates on a case-by-case basis according to the acceptability of the deal.
According to the lender, it will not only take a revised approach to bad credit, but has also improved its sourcing due to consultation with brokers.
The product carries a 2 per cent arrangement fee.
Jack Coombs, director at Aspen Bridging, said: “We are maintaining our high LTV and bespoke focus within bridging, while lowering the rates to enable customers to access more mainstream rates.
“The purpose of these changes is simply to make our products both less expensive and more accessible.
“We are offering these same rates right up to 80 per cent LTV for residential and 70 per cent for commercial.”
Michael Perry, bridging finance broker at Enness Bridging Finance, said: “Aspen Bridging is offering a competitive LTV, at 80 per cent and this is attractive as most lenders will cap LTV at around 70 per cent to 75 per cent.
“The fact they offer high LTVs on both and a heavy refurbishment is an attractive proposition and the ability to make multiple drawdowns keeps the cost of development work down.
“The products also cater for complex clients with bad credit, giving these borrowers an opportunity where they wouldn’t otherwise have one, and the option to cross collateralise is always good, enabling the borrowers to take out a first charge on their main residence, while also taking out multiple second charges on the properties to secure the required loan amount.”
It seems like Aspen Bridging has been a very busy bunch of late with an update to its sourcing system and if it has revamped its methods of trading as much as it claims, then this can only be a good thing for intermediaries. However, as it deals with property bridging loans, this would be a niche offering for advisers at best.
There are not many negatives to the offer and with a higher than usual LTV this should give intermediaries who may deal with this kind of product some wriggle room. However, always remember that a 0.5 per cent exit fee (in this case) is likely to be unpopular.