Aspen Bridging to lend on pre-pandemic valuations

All valuation bases are to be given on the assumption of normal market conditions as of 1 March 2020, before the World Health Organization declared the virus a pandemic 10 days later, it said.

The lender made the decision to counter what it said was a “pattern” of valuers giving properties five to 25 per cent reductions in valuation prices.

Aspen said this created “deep uncertainty” for clients and brokers when determining what loan amounts are actually available.

The lender said it was continuing to manage its risk by completing desktop valuations with a 62.5 per cent loan to value limit for residential and light residential refurbishments.

It will accept applications with a maximum loan of £1m and flat rates start at 0.89 per cent with terms running from 12-14 months. Stepped rates start at an initial 0.59 per cent and are up to a maximum of 12 months.

In addition, all meetings are undertaken via Facetime, and the lender’s legal partners are working remotely.

Jack Coombs (pictured), director at Aspen Bridging, said: “By taking the value of a property on March 1 we have created market leading leverage for every single application, and in turn generated a transparent, easy-to-understand offering.

“Lenders who are low geared or equity funded like us will continue to reliably operate and offer brokers and customers a credible lending service, and we will continue to introduce innovative ideas to deliver on our promises.”