In a significant move for the property finance sector, TAB has joined the TMA Mortgage Club lending panel, enabling members to access a wide array of specialist property finance products. This partnership enhances the options available for brokers and their clients, particularly in the bridging finance market, which is important for property investors looking for flexible funding solutions.
What Types of Bridging Finance Does TAB Offer?
TAB provides a diverse range of finance options tailored for property investors. Their offerings include residential, semi-commercial, and commercial mortgages, as well as bridging loans. For mortgages, rates start at 3.50% plus the Bank of England base rate, with loan amounts ranging from £100,000 to £5 million. Loan-to-value ratios can reach up to 75% for residential properties and 70% for commercial assets.
In terms of bridging finance, TAB’s products cater to immediate funding needs, offering loans from £100,000 to £5 million with terms of up to 24 months. The starting rate for these bridging loans is an attractive 0.68% per month, providing a competitive edge in the market.
How Does This Impact Brokers and Clients?
The inclusion of TAB in the TMA Mortgage Club significantly enhances the financing options available to brokers. This is particularly important given the growing demand for flexible and quick funding solutions in the property market. With TAB’s track record of lending £759 million since its inception in 2018 and the recent £500 million facility secured from CarVal, brokers can be more confident in their ability to meet client needs, regardless of market conditions.
For clients, this means access to a broader spectrum of financial products that can accommodate various investment strategies, whether they are looking for long-term mortgages or short-term bridging solutions.
What This Means for Property Investors
For property investors, the partnership between TAB and TMA Mortgage Club is a game-changer. With increased access to bridging finance, investors can act swiftly on property opportunities without the delays often associated with traditional financing methods. The ability to secure loans with high loan-to-value ratios and competitive rates allows for greater flexibility in investment decisions.
Investors should watch for how TAB’s offerings evolve in response to market demands and whether they introduce new products that could further enhance funding options.
Frequently Asked Questions
What is bridging finance?
Bridging finance is a short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing one. It is typically used when quick access to funds is necessary.
How can I access TAB’s products through TMA Mortgage Club?
Brokers who are members of TMA Mortgage Club can access TAB’s range of specialist property finance products, including bridging loans, by contacting their TMA representative for more details on the application process.