Afin Bank has launched a new bridging finance proposition offering lending of up to 80% LTV gross for borrowers who need funding quickly, including those buying before selling an existing property or dealing with delays in a sale.
The new product is designed to support time-sensitive borrowing while removing the need for monthly repayments. Instead, interest rolls up throughout the loan term and is paid when the loan is repaid. Interest is calculated daily and is not compounded, meaning borrowers pay only the amount that has accrued when they exit the loan.
Afin Bank focuses on borrowers who may find it more difficult to secure funding through mainstream lenders, and it has developed the new bridging finance proposition with features intended to simplify access to short-term lending.
Bridging finance designed for time-critical borrowing
The product includes:
- Automated valuation models (AVMs) available up to 80% LTV.
- Valuations based on open market value (OMV), helping customers achieve the highest available valuation.
- Dual representation to help complete cases more quickly.
- Title insurance and personal borrower status, including for customers with UK visas and those with a limited UK credit footprint.
Loans are available from £50,000 to £3 million. The product carries a 2% arrangement fee calculated on the net loan size rather than the gross loan. As with all of Afin Bank's lending, the bank's underwriting team will assess each application individually.
The lender has appointed John Smith as head of bridging following his promotion to lead the new proposition.
"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," said Smith (pictured).
"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 refurbishment 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."
