Property landlords in the UK wanting to access bridging loans quickly have been offered a range of products by Keystone.
The firm says it has a range of bridging products which will deliver quick finance for landlords to buy properties, refurbish them and refinance them.
There are six products which have been priced in accordance with the applicant’s credit profile with prime borrowers enjoying better rates than applicants with an adverse credit history.
For bridging loans of up to £1 million, Keystone rates start from 0.85% per month with a 70% LTV – though this rises to 75% LTV on referral.
The credit line is being funded by Lancashire Mortgage Corporation
Decisions on bridging loans
Keystone’s managing director, David Whittaker, said: “Decisions on bridging loans are made within hours and funds released in five working days.”
He added that the products have no exit fees and that the costs and fees for borrowers have been kept intentionally low.
There is an assessment fee which is a one-off £199 cost with a bridging loan facility fee of 2%.
The bridging loans for landlords are available now via various broking firms.
Remortgages hit record peak
Meanwhile, new data has revealed that homeowners in the UK are cashing in on rocketing property values by pushing the average remortgage loan value to new heights, according to the Mortgage Advice Bureau (MAB).
The firm says that the typical remortgage value in June was £166,100 which grew by 2% in July to £170,094 – this is the highest figure since 2009 when data was first recorded.
MAB point out that the average value being remortgaged in the UK is now worth £300,898 – the highest since October 2014.
The research also reveals that homeowners are opting not to take smaller loans which would decrease their mortgage repayments but to use property price gains to generate cash.
The net result is that the average house equity has fallen to stand at £130,804.
Using property for releasing extra funds
MAB’s head of lending, Brian Murphy, said: “Many homeowners are using their property for releasing extra funds and they have benefited from house price rises.”
However, Mr Murphy pointed out that by opting for higher LTV ratios means that the borrowers are also opting for higher mortgage repayments.
He added too, that the average price of property in the UK has risen by a third in five years, according to the Office for National Statistics.
The MAB data has been put together from responses given by 900 estate agents and 700 mortgage brokers which revealed that remortgages have risen by 35% year-on-year.
Applying to remortgage
Most of those applying to remortgage are doing so ahead of an expected interest rate rise in the coming months and mortgage experts predict a growing number of homeowners will remortgage in the next few months.
Those who are remortgaging are opting for fixed rate deals and can enjoy some excellent deals being offered by lenders currently.
Mr Murphy added: “Mortgage interest rates have tumbled since the beginning of 2015 and many lenders are offering low rate deals.”
He also pointed out that some lenders have increased their rates in recent weeks which means that the peak for low remortgage deals is coming to an end.