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Spring Finance cuts pricing and adds AVMs to bridging range

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  • 07/03/2023
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Spring Finance cuts pricing and adds AVMs to bridging range
Specialist lender Spring Finance has added the use of automated valuation models (AVMs) to its bridging range and lowered pricing.

The availability of AVMs will apply immediately. 

They can be used against first charge residential and debt consolidation bridging loans up to £200,000 at a maximum loan to value (LTV) tier of 65 per cent as well as second charge residential and debt consolidation bridging loans up to £100,000 at a maximum LTV of 60 per cent. 

This comes after requests made by brokers to allow the use of AVMs. Spring said this would improve the speed of processing while providing certainty and cost savings for borrowers. 

The changes to its bridging products include a reduction in rates and the introduction of price bands. 

For example, the first charge residential bridging loan up to 60 per cent LTV previously had a monthly rate of 0.84 per cent, and up to 70 per cent LTV was priced at 0.94 per cent. The lender has now introduced a 65 per cent LTV option with a rate of 0.89 per cent.

The second charge residential bridging loan up to 50 per cent LTV had a rate of 0.94 per cent, and up to 65 per cent LTV a rate of 1.04 per cent. A 60 per cent LTV option has been added with a rate of 0.99 per cent.

The flat rate of 0.99 per cent for first charge heavy renovation loans is now 0.94 per cent up to 50 per cent LTV and 0.99 per cent up to 65 per cent LTV. The second charge equivalent has changed from a single rate option of 1.14 per cent to 1.09 per cent up to 50 per cent LTV or 1.14 per cent up to 60 per cent LTV.

Last year, the lender received an undisclosed funding line from Natwest to support its bridging and obtained a second cash injection from Hampshire Trust Bank.

 

‘Big demand for specialist bridging’

Jim Baker, sales director of bridging at Spring Finance, said: “The market is predicting a big demand for specialist bridging this year but there will still be challenges for introducers trying to manage upfront costs and having confidence that lenders will complete on deals and in a timely manner.  

“Helping brokers create great customer outcomes is at the heart of what we do.”  

Claire Newman, director of bridging at Spring Finance, added: “Certainty of decisions and speed of transactions are critical in this market and this is another step in ensuring Spring provides the best in class service for our introducers.  

“We are constantly looking to refine our products and processes and I am proud of the reputation we are building at Spring.” 

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