United Trust Bank (UTB) has launched its latest in bridging / development finance solutions, by way of a new range of flexible residential property improvement loans aimed at experienced property developers.
The new range of products include a funded works improvement loan and an unfunded works improvement loan, which can support either acquisition costs and improvement works, or acquisition costs alone.
Suitable for developers who are looking to carry out a range of projects, the loans can be exited either via sale of the property once works are complete or through refinancing, should the property be retained for letting.
The funded works improvement loan allows the borrower to fund 100% of the improvement costs at a maximum of £500,000 or 50% of initial market value, whichever is lower, and to borrow a maximum of £1.5m subject to a maximum 70% of loan to gross developed value (LTGDV).
Interest, which is added to the loan, is charged at 0.95% per month.
The unfunded works improvement loan can provide up to 70% of the purchase price with interest at 0.75%, and is suitable for cases where borrowers intend to fund improvement works themselves.
Gavin Diamond, head of sales and underwriting at UTB’s Bridging Division, said:
“With terms of up to 18 months, these flexible and extremely competitive new loans will appeal to experienced property improvers looking for excellent value and the opportunity to work with a finance partner that understands the property business, the process and the challenges which can often arise during a residential improvement project.”
“Like many of the products brought to market by United Trust Bank, it is a specific response to demand and has been developed in consultation with our broker partners.”
“The team at United Trust Bank has decades of collective experience in the property sector as well as in short-term secured finance, and can provide much more than just the pounds and pence required to successfully complete a project, especially should complications crop up along the way.”
UTB requires all applicants to have completed at least two similar projects before applying.
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