United Trust Bank reduces minimum bridging loan size to £75k and uses AVMs

United Trust Bank has announced that it will now provide bridging loans from £75,000 with immediate effect. This applies to both regulated and non-regulated lending on a first or second charge basis. The move is in response to increasing demand for smaller bridging loans from brokers and customers across England and Wales.

In addition, an automated valuation (AVM) can be used on loans meeting certain criteria.

UTB introduced a national sales strategy last year and recruited a larger team of BDMs to build relationships with brokers and intermediaries well beyond the traditional London and South-East bridging finance hot spots. Feedback received from brokers indicated that there was a demand for smaller bridging loans and the Bank has responded.

Commenting on the change Gavin Diamond, United Trust Bank Commercial Director – Bridging, said:

“The reduction in our minimum bridging loan size from £100,000 to £75,000 broadens our offering to brokers and customers in areas where average property values, and therefore loan requirements, may be lower than London and the South East.

“The bridging market has grown significantly in the last few years, largely as a result of professional finance brokers recognising the flexibility and versatility of bridging finance and its suitability as a finance option in a variety of circumstances. This is a message we have taken out to brokers across the country and we’ve had an excellent response. The AVMs will significantly reduce the cost and loan processing time for borrowers too.

“We have the products, the team and the systems in place to be able to fulfill an increasing volume of deals without compromising our high service standards. What’s more, UTB remains a dependable and approachable lender with a robust source of funds and a strong appetite to lend.”

Snapshot of UTB bridging finance lending criteria and key features

  • Minimum loan size £75k
  • Maximum loan size £15m+
  • Residential and mixed-use security
  • Max LTV 70% MV
  • No upper age limit
  • Individual, corporate and trust borrowers
  • FCA regulated and unregulated loans
  • Interest calculated daily
  • Rolled interest facility
  • Valuations and legal fees at cost