Castle Trust Bank has announced a series of reductions on their bridging loan interest rates, making them a more attractive option for property investors looking to finance renovations or bridge gaps in funding. These new special edition rates apply to both Light and Heavy Refurb bridging loans, with the bank setting a deadline for completion by the end of July to avail of these preferential rates.

What’s on Offer?

Castle Trust Bank’s initiative features reduced rates across various loan-to-value (LTV) ranges for their Light and Heavy Refurb bridging loans. Here’s a breakdown of the new rates:

Light Refurb Bridging Loans

• For LTVs between 70% and 80%: Rates have been cut from 0.85% to 0.80% per month.
• For LTVs up to 65%: There’s even more good news as rates have dropped from 0.85% to 0.75% per month. Importantly, there are no time constraints to qualify for this rate.

Heavy Refurb Bridging Loans

• For LTVs between 70% and 80%: Rates have been lowered from 0.95% to 0.90% per month.
• For LTVs up to 65%: Rates have been substantially reduced from 0.95% to 0.80% per month, with no time limitations on qualification.

Additionally, the bank has reduced the interest rate on its Standard Bridge products to just 0.75% per month for loans up to a 70% LTV, a decrease from the previous 0.85%.

Strategic Enhancements

Anna Lewis, Commercial Director at Castle Trust Bank, shared insights into the bank’s strategic moves. According to Lewis, Castle Trust has significantly improved its bridging loan offerings since their launch, especially with the introduction of Net LTV calculations. This innovative approach allows fees and interest to be added above the standard maximum LTVs, providing a greater degree of flexibility for borrowers.

Lewis expressed excitement about the bank’s ability to make their loan range more appealing, particularly with the special pricing in the critical 70% to 80% LTV band and other rate reductions at lower LTVs. This move is poised to make Castle Trust Bank a go-to for property investors seeking competitive financing solutions.