The bridging part of the deal is available to 75% of open market value for six months to allow landlords to refurbish the property, which is then revalued. Landlords can then raise up to 75% of the new property value, if proof of new tenancy is provided.
The rate is dependent on the final LTV, with a 75% LTV two-year fixed at 6.99%.
Ian Balfour, chief executive of SMS, said: “Landlords can buy at auction with confidence knowing that, with the bridging element of the product, they have the time to refurbish and the guarantee of a fixed rate longer term product to finance the property without having to run the risk of not finding finance at the end of the bridge period.”
Guy Garrard, head of business development at Tiuta, said: “Having analysed the market, it was clear to us that one of the bottlenecks despite the demand for short-term financing came when landlords needed to refinance away from the bridging facility onto a longer term finance deal when at present there is so little reliable funding generally. With this product, the intermediary market gets a really business tailored product which removes any uncertainty from the transaction and provides real finance continuity.”