Tuscan Capital launches commercial bridging loan product

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Colin Sanders Tuscan Capital

As part of its new wider short-term funding offering, Tuscan Capital has entered the commercial lending market with the launch of its first-ever product dedicated to property landlords and developers operating in the sector.

Previously, Tuscan Capital had focused on the residential, semi-commercial, HMO and mixed-use bridging sectors.

However, with a new funding facility in place the lender said it now had the appetite and capacity to reach and serve a new broker/client demographic.

Tuscan Capital said the commercial bridging facility is just one facet of an enhanced offering being rolled out for 2022. Other improvements include:

  • A sharpened appetite for larger loans (£3m to £10m) where multiple properties and/or portfolios are being acquired;
  • Greater criteria flexibility across the existing range of light refurbishment, heavy refurbishment, mixed-use conversion and developer-exit products; and
  • A new 2/3 year term facility for existing borrowers.

Tuscan Capital confirmed it has been able to make these enhancements following the renewal of one of its original institutional funding facilities and the introduction of a new private funding partnership, resulting in the lender now having access to multiple funding channels and unlimited capacity.

The new commercial product – named “Commercial Bridging by Tuscan Capital” – presents the following headline features and is now available to qualifying borrowers:

  • Up to 65% LTV (exceptions apply)
  • From £100k to £5m
  • From 3 -18 months
  • For purchase, refinance or capital raising
  • Retail units, office units, warehouses and industrial premises
  • Land with planning as supporting security (land element up to 55% LTV)
  • Assets of non-standard construction (up to 55% LTV)

The new term facility – named “Stabiliser by Tuscan Capital – is a 2/3 year term product for clients who have finished their refurbishment projects but need to repay the bridge while they prove their rental model (by stabilising the rental yield), so enabling them ultimately to refinance with a High Street buy-to-let lender.

The Stabiliser is only available to existing Tuscan Capital bridging borrowers and aims to provide a ‘comfort blanket’ for clients who want assurance that they can repay the bridge once their building work is complete.

Features include:

  • Term for 24 or 36 months;
  • Up to 70% GDV (with equity release allowable);
  • Interest to be fully-serviced monthly from the rental income; and
  • Rates from 0.575% per month.

Colin Sanders, pictured, Tuscan Capital’s CEO, said:

“Our new wider lending proposition has been made possible through our access to multiple funding channels which are distinct from the rest of the market.

Our funding partners complement one another as they have different and differing risk appetites.

This gives us the flexibility to consider business which would not typically tick the boxes of institutional funders, and allows us both to price competitively for risk while taking a realistic, commercial approach where the quality of the deal justifies it.

Having enjoyed a stellar 2021 and building our loan book beyond all expectations, we head into 2022 with a significantly enhanced proposition and a strengthened operational team to support it.”