Masthaven Bridging Finance

Masthaven, now known as United Trust Bank (UTB), offered bridging finance solutions tailored to a range of property-related needs. While Masthaven’s brand no longer exists, understanding their bridging finance offerings provides valuable insight into UTB’s current capabilities and the broader bridging loan market.

Bridging loans, in essence, are short-term finance options used to “bridge” a gap between events. Masthaven’s bridging loans were often employed in situations where borrowers needed immediate access to funds to complete a property purchase, refinance existing debt, or undertake property development projects. Because of their short-term nature (typically ranging from a few months to a year), bridging loans typically carry higher interest rates than traditional mortgages. However, they provide crucial flexibility and speed often unavailable through conventional lending channels.

Masthaven differentiated itself with a pragmatic and flexible approach to underwriting. They considered applications from a wider spectrum of borrowers, including those with complex income streams, adverse credit history, or non-standard property types. This made them a viable option for individuals and businesses unable to secure funding from mainstream lenders.

Common uses for Masthaven bridging finance included:

• Property Acquisition: Quickly securing a property purchase when a traditional mortgage isn’t readily available, such as at auction or with a short completion deadline.
• Chain Breaking: Preventing a property transaction from falling through due to delays in the sale of an existing property.
• Refurbishment and Development: Funding renovation projects, property conversions, or ground-up developments where staged payments are required.
• Debt Consolidation: Consolidating existing short-term debts into a single, more manageable loan, often with a plan to refinance to a longer-term product.
• Business Finance: Providing short-term working capital for businesses, secured against property assets.

Factors to consider when evaluating Masthaven (UTB) bridging finance included the loan-to-value (LTV), interest rates, arrangement fees, and exit strategy. The LTV represented the percentage of the property’s value that the loan covers. Higher LTVs typically meant higher interest rates and a greater risk for the lender. A well-defined exit strategy, such as refinancing with a mortgage or selling the property, was crucial for repaying the loan within the agreed timeframe and avoiding potential penalties.

Furthermore, it’s important to note that bridging finance is a regulated product, and borrowers must undergo thorough affordability assessments. Consulting with a specialist bridging finance broker is highly recommended to compare different lenders, understand the associated risks, and ensure the chosen loan structure aligns with individual circumstances and financial goals. While Masthaven operated as an independent brand, their expertise now resides within United Trust Bank, continuing to serve the bridging finance market with their unique perspective.