Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Afin Bank Unveils Regulated Bridging Loans Up to 80% LTV

Afin Bank has launched a regulated bridging loan product, offering lending up to 80% loan to value (LTV) gross. The new proposition is designed for borrowers with time-critical funding needs, such as purchasing a property before selling an existing one or managing delays in sales.

The bridging product is structured so that borrowers do not need to make monthly payments. Instead, interest is rolled up and paid at the end of the loan term. Interest is calculated daily and is not compounded, meaning customers pay only what is due upon exit. The product allows access to funds for refurbishment costs from day one.

Loans are available from £50,000 up to £3 million, with a 2% arrangement fee applied to the net loan size. Afin Bank requires borrowers to provide an evidenced exit strategy to ensure repayment within the loan term, as the loans are exit-dependent.

This development may be relevant to UK letting agents and inventory clerks working with clients who require short-term finance solutions for property transactions or refurbishments.