Recognise Bank has announced an increase in its loan-to-value (LTV) ratio for residential bridging finance from 75% to 80%. This change allows borrowers greater access to capital, making it easier for them to fund various property types, including buy-to-let portfolios and semi-commercial assets.
How Does This Change Affect Borrowers Seeking Bridging Finance?
The increase to 80% LTV means that borrowers can now secure a larger portion of their property’s value through bridging finance. This is particularly beneficial for those looking to invest in buy-to-let properties, HMOs, or mixed-use developments. With rates starting from 0.77% per month, the new offering provides more flexibility in accessing funds for property purchases or renovations.
What Types of Properties Are Supported by Bridging Finance?
Recognise Bank’s bridging finance options cover a wide range of property types. This includes residential properties, commercial investment properties, and owner-occupied businesses. The ability to finance up to 80% LTV opens doors for investors who may have previously been limited by lower LTV ratios.
What This Means for Landlords and Investors Using Bridging Finance
For landlords and property investors, the increase in LTV can significantly enhance purchasing power. This means they can take on more ambitious projects or expand their portfolios without needing to raise as much upfront capital. The ability to access up to 80% of a property’s value can also facilitate quicker transactions, which is vital in a competitive property market.
Frequently Asked Questions
What is bridging finance?
Bridging finance is a short-term loan used to bridge the gap between immediate funding needs and longer-term financing solutions, often used in property transactions.
How can I apply for bridging finance with Recognise Bank?
Interested borrowers can apply directly through Recognise Bank’s website or through intermediaries who facilitate bridging finance applications.