Aspen Bridging has launched flexible loan extensions.
Customers will now be able to extend their loan for up to six months if serviced, and up to two months if non-serviced.
The decision is designed to protect a borrower’s equity in projects that have been subject to unforeseen delays, according to the firm.
Aspen Bridging director Jack Coombs comments: “There are two key considerations at play here. The sector is not working in the best interests of the client if penalties are added the moment a borrower goes over term, because ultimately how does this protect their equity and their ability to refinance.
“For a ‘flextension’ to be offered there has to be a good reason for the requirement and a credible exit must remain in place, and if these stipulations are met then it is in everyone’s best interests, including ours, to find a workable solution.
“The client always has to remain the foremost consideration in every transaction, that is how you retain repeat custom and protect the long-term reputation of your business.”