United reduces minimum bridging loan size

United reduces minimum bridging loan size

United Trust Bank has reduced the minimum on its bridging loan to £75,000 due to increased demand for smaller loans.

The move applies to both regulated and non-regulated lending on a first or second charge basis and the group said it is in response to increasing demand for smaller bridging loans from brokers and customers across England and Wales.

The group said it will also allow automated valuation (AVM) to be used on loans meeting certain criteria.

Gavin Diamond, United Trust Bank commercial director for bridging, said the move was in response to demand from areas where average property values, and therefore loan requirements, may be less than in London and the south east. 

He said: "The bridging market has grown significantly in the last few years, largely as a result of professional finance brokers recognising the flexibility and versatility of bridging finance and its suitability as a finance option in a variety of circumstances.

"This is a message we have taken out to brokers across the country and we have had an excellent response. The AVMs will significantly reduce the cost and loan processing time for borrowers too."

Simon Allen, broker at buy-to-let mortgage finance expert Searchlight Finance, said the lower loan sizes available were welcome.

He said: "As investors move north, looking for good-value properties, there will be greater demand for smaller loans. This is a positive move." 

He also welcomed the use of AVMs.

Mr Allen said: "Some lenders are already doing this but they are in the minority, so this is really welcome, especially with United Trust's slick processing in the background."