Castle Trust Update

Interest in our Bridge to Let option just keeps growing and growing – could it help your clients too? Don’t forget we underwrite the bridge and the term application at the outset, giving your client up to 9 months on an interest roll-up basis, with no payments if they wish, and a guaranteed exit to the term loan when they’re ready to switch.

That’s exactly what one of our clients, a UK Limited Company, did recently:

The Property

• The property was a three-bed terraced house, valued at £300,000, to be converted to a six-bed HMO
• The property required refurbishment, a refit, and a loft conversion – all under permitted development rules

 Our Bridge to Let solution

• We provided an 80% gross day one bridging loan of £240,000 at 0.67% pm on an interest roll up basis
• The client had 9 months of interest roll up available, without any payments, to allow for any over runs and to allow time for letting or sale

 Flexibility delivering results

• The works were completed quickly and after 3 months, the client opted to switch without an ERC to TermTen, our 10 year Buy to Let loan, fixed at 5.29% for the first 5 years
• The gross TermTen loan of £318,000 was 75% LTV against the uplifted value of £425,000. This enabled the client to replenish the cash they spent on the refurbishment, and facilitate their next purchase