TUSCAN CAPITAL RESTORES MAXIMUM LTV TO 75%
Tuscan Capital has launched a new range of broker-focused bridging products that restores maximum LTVs to their pre-lockdown levels.
The lender said it had been encouraged to make the move following a surge in demand from introducers for competitively structured short-term funding products.
Tuscan Capital confirmed it had previously reduced maximum LTVs both to reflect wider market adjustments and to ensure its operational continuity during the recent period of national shutdown.
With effect from 1st September, the following maximum LTVs will apply:
• Purchase Bridge - up to 75% LTV
• Refurbishment Bridge - up to 70% LTV
The lender confirmed that other relevant product criteria is listed in full on its website.
Colin Sanders, Tuscan’s CEO, said: “Funding is readily available now and our team fully back in place and prepared for an increase in new business.
“Given the uncertainty of the past five months, I’m expecting an uplift in new applications through to the end of 2020 as developers and investors make firm decisions about their plans and strategies for 2021.
“During lockdown, we remained open for business whilst focusing primarily on servicing our existing clients and on those deals we had committed to fund before the shutdown occurred. But we also took time to monitor closely shifting market appetite.
He continued: “Having fully honoured our committed-to pipeline of cases - which included several purchase cases and a number of large, complex BTL portfolio deals - we listened to the voice-of-the-customer and decided to stretch our LTV boundaries where investors are willing to fund a 25% deposit and the associated purchase costs.
“It also became clear to us there was pent-up demand for refurbishment funding, so we decided to raise our maximum LTV to 70% in this important market sector.”
Sanders concluded that whilst today’s unique set of health and economic circumstances will require intelligent adaptation and agile responses, Tuscan Capital remains cautiously optimistic for the future of the UK property market and is keen and able to provide funding support to viable projects.