Castle Trust Bank reduces five-year fixed rates and updates bridging range

There is a 0.07 per cent booking fee to secure the rate as long as the loan completes within 120 days from an application being submitted. The range offers loans of up to £5m and can be used for standard buy-to-let, houses in multiple occupation (HMO) up to six rooms, multi-unit freehold blocks (MUFBs) and holiday let properties. 

The lender has also made changes to its standard, light refurbishment and heavy refurbishment bridging products to include sale and refinance exit option. 

The term for cases with a sales exit strategy has also been extended to 18 months. There is no early repayment charge (ERC) after three months and Castle Trust Bank said this was done in light of current market conditions. 

It is available up to 80 per cent loan to value (LTV) net, and loan to gross development value (LTDGV) of 75 per cent. 

The lender will allow fees and interest to be added to loans above the maximum LTV, and the range offers a minimum loan size of £200,000. 

Rates on the range begin from 0.85 per cent. 

Castle Trust Bank: ‘Listening to brokers’

Anna Lewis (pictured), commercial director at Castle Trust Bank, said: “We’ve listened to brokers and understand the challenges they are facing in the current economic climate. Our new TermTen rate is now extremely competitive, and our ever-popular booking fee option can provide confidence and security regarding the rate whilst the case is being progressed.

“Our specialist bridging proposition has been tremendously popular this year, and the inclusion of sale as an exit strategy will make the proposition even more accessible. By increasing the term on sale cases to 18 months, we’ve recognised and acted upon current market conditions, and this enhancement will give property investors the time they need to help them achieve their target sale price. Should they be able to achieve that earlier, there’s no ERC if they repay the loan after three months.

“These updates and improvements to our proposition show that we’re listening to brokers, and working with them to address the issues being faced by their clients.”