Aspen Bridging has become the first UK lender to state it will lend on pre Covid-19 property values.
Under the market leading offering, all valuation bases are to be provided on the special assumption of normal market conditions as were prevailing as of March 1st, 2020 without the coronavirus and any associated economic impact.
The lender took the unprecedented step to counter a pattern of valuers applying blanket 5-25% reductions in valuation prices during the pandemic, which in turn creates deep uncertainty for clients and brokers as to what actual loan amounts are actually available.
Aspen Bridging was one of the first lenders to introduce desktop valuations to circumnavigate the surveying shutdown which poses a major obstacle for the specialist finance industry.
In addition all meetings are undertaken via Facetime, and the lender’s legal partners operate with full remote capacity and pay-out functions.
Jack Coombs, Director at Aspen Bridging said:
“By taking the value of a property on March 1st, 2020 we have created market leading leverage for every single application, and in turn generated a transparent, easy-to-understand offering.
In today’s market, based on desktop valuation bridging we control our risk with a 62.5% LTV limit, which still represents one of the leading figures.
Lenders who are low geared or equity funded like us will continue to reliably operate and offer brokers and customers a credible lending service, and we will continue to introduce innovative ideas to deliver on our promises.”
Aspen Bridging is accepting applications up to £1 million net at a maximum 62.5% LTV for residential and residential light refurb projects.
Flat rates start at 0.89% with terms running from 12-14 months, with stepped rates starting at an initial 0.59% up to a maximum of 12 months.