Castle Trust revamps bridging loan range
Castle Trust Bank has reduced the five-year fixed rate on its TermTen range from 7.49% to 6.39%, on loans up to £5m.
To give brokers and customers the option of additional certainty, a booking fee of 0.07% can be used to guarantee the rate, as long as the loan completes within 120 days from submission.
TermTen can be used for standard BTL, HMOs up to 6 rooms, MUFBs and holiday lets.
The lender has also made changes to its Standard, Light Refurb and Heavy Refurb Bridging ranges, to include both sale and refinance exit options.
In recognition of current market conditions, the term of bridging loan cases with a sales exit strategy has been extended to 18 months, with no ERC after 3 months.
The maximum LTV is up to 80% net, Maximum LTGDV 75%, meaning that fees and interest can be added to the loan above the maximum LTVs, with a minimum loan size of £200k.
Interest rates start at 0.85%.
Anna Lewis, Commercial Director at Castle Trust Bank, says:
“We’ve listened to brokers and understand the challenges they are facing in the current economic climate.
Our new TermTen rate is now extremely competitive, and our ever-popular booking fee option can provide confidence and security regarding the rate whilst the case is being progressed.
Our specialist bridging proposition has been tremendously popular this year, and the inclusion of sale as an exit strategy will make the proposition even more accessible.
By increasing the term on sale cases to 18 months, we’ve recognised and acted upon current market conditions, and this enhancement will give property investors the time they need to help them achieve their target sale price.
Should they be able to achieve that earlier, there’s no ERC if they repay the loan after 3 months.
These updates and improvements to our proposition show that we’re listening to brokers, and working with them to address the issues being faced by their clients.”