United Trust Bank (UTB) has expanded its bridging finance offerings by introducing new products tailored for near-prime borrowers and those undertaking heavy refurbishment projects. This move is significant as it broadens access to bridging finance for a wider range of borrowers, including those whose financial circumstances may not align with traditional lending criteria.
What are the new bridging finance products?
UTB’s latest offerings include a Near Prime product aimed at borrowers who may not meet standard lending criteria but still present a good risk. This is particularly beneficial for individuals with unique financial situations, allowing them to access bridging finance that was previously out of reach. Additionally, the Heavy Refurbishment product caters to investors and landlords looking to undertake significant property improvements, providing them with the necessary capital to realise more ambitious projects.
How do these changes impact borrowers and investors?
The introduction of these products means that landlords and property investors now have more options when seeking financing for their projects. With bridging rates starting at 0.57% per month, borrowers can secure funding quickly, enabling them to act swiftly in a competitive property market. This flexibility is important for those looking to capitalise on opportunities, particularly in the refurbishment sector where property values can be significantly enhanced through renovation.
What this means for near-prime borrowers
The Near Prime product is a game-changer for borrowers who have faced challenges in securing traditional loans due to non-standard circumstances. This could include self-employed individuals or those with complex financial histories. By catering to this demographic, UTB is facilitating greater financial inclusion and enabling more potential homeowners and investors to access the property market.
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, or to fund refurbishment projects.
How can I apply for UTB’s bridging finance products?
Interested borrowers can apply directly through UTB’s website or contact their mortgage broker for assistance in navigating the application process.