Case Study: How Aspen’s £950k Bridge-to-Let Deal Closed in Just 10 Days — What London Landlords Need to Know

What Is Aspen’s Bridge-to-Let Product and Why Does It Matter?

Aspen has enhanced its bridge-to-let offering to combine short-term bridging finance with longer-term buy-to-let (BTL) lending into a single, streamlined product. This hybrid solution allows landlords and investors to secure quick funding to purchase properties and then transition seamlessly into a buy-to-let mortgage, avoiding multiple lenders or cumbersome reapplications. Key features include:

• Combined terms up to five years
• Loan amounts up to £15 million
• Loan-to-value (LTV) up to 80%
• Monthly bridging rate of 0.89%
• Annual buy-to-let rate of 6.49%

A recent example saw Aspen close a £950,000 deal in just 10 days, demonstrating the speed and efficiency this product brings. For London landlords facing competitive markets or requiring rapid financing, this offers a strong option to streamline purchases and refinancing into one straightforward package.

Practical Implications for Landlords

Faster Deal Completion

Aspen’s “one-person-per-case” approach simplifies communication and reduces delays common with larger or segmented lenders. When bidding on in-demand properties or managing multiple acquisitions simultaneously, this speed can make a crucial difference.

Loan Structuring and Financial Planning

Understanding the interest rate structure is essential. The bridging portion charges 0.89% monthly (approximately 10.7% annually if compounded), transitioning to a buy-to-let rate of 6.49% per annum after refinance. Landlords should model cash flows carefully to ensure affordability throughout both phases.

For example, on a £950,000 loan at 80% LTV, bridging interest could amount to around £7,500 per month before switching to the buy-to-let terms.

Compliance and Exit Strategy

The product requires refinance into a buy-to-let mortgage within the combined term (up to five years). Landlords should:

• Verify eligibility against Aspen’s buy-to-let lending criteria
• Plan realistic exit strategies considering market conditions
• Monitor interest rates and lender policy updates regularly

Failing to refinance on time could result in higher costs or forced sale.

Considerations for Different Landlord Profiles

• Single-Unit Landlords: Benefit from quick bridging to secure properties before arranging longer-term mortgages.

• HMO Operators: Larger loan limits and longer terms support portfolio growth or refurbishment projects.

• Portfolio Landlords: Simplified refinancing reduces administrative burden and enables efficient capital recycling.

• Accidental Landlords: May find this product complex but useful when professionalising or expanding holdings.

Recommended Next Steps for London Landlords

1. Review Aspen’s Product Details: Obtain full documentation to understand all fees, covenants, and eligibility.
2. Assess Portfolio Fit: Evaluate how combined bridging and buy-to-let financing aligns with your strategy and cash flow.
3. Run Financial Scenarios: Model bridging interest, buy-to-let repayments, and exit timelines under various market conditions.
4. Engage Early: Contact Aspen or your broker to clarify documentation requirements and accelerate approvals.
5. Plan Your Exit Strategy: Ensure you have a clear plan and contingency for refinancing within the product term.
6. Monitor Market Rates: Stay informed to adjust your plans according to interest rate fluctuations.

How Rentals & Sales Can Support London Landlords

Our dedicated team provides tailored portfolio reviews, compliance audits, and financing strategy advice to help you navigate innovative lending products like Aspen’s bridge-to-let offering. We assist in deal structuring, loan applications, and ensure your exit strategies are robust.

Contact us to schedule a consultation and optimise your funding approach in today’s competitive London property market.

Compliance note: This article provides general information and does not constitute financial advice. Please consult a qualified mortgage broker or financial advisor before committing to any lending product.