"Borrowers will need to work with a lender that wants to support them through these uncertain times "
Borrowers will be able to trigger an automatic extension clause, meaning that on expiry of the initial 12 months term, borrowers will be able to automatically extend the term of the loan for a further 12 months.
The facility will allow an automatic 12-month extension on the proviso that the facility is not in default at any time during the initial loan term.
TAB offers range of short-term loans for first and second charges, as well as for commercial and residential property.
Earlier this month, the lender announced that it will utilise AVMs and desktop valuations to continue lending on residential property up to a value of £2 million.
Duncan Kreeger, founder and CEO of TAB, commented: “TAB is about building trust with our community and being transparent from the outset and with this in mind borrowers should feel they have more than just a loan, it's a business relationship.
"Once again we are constantly searching for ways to better cater for our client’s needs and I feel this small change to our documentation may give those in need, vital time and space in which to complete their dealings.”
James Kent, co-founder of Life Financial Solutions, added: “Borrowers will need to work with a lender that wants to support them through these uncertain times and what TAB is offering will make a lot of sense to borrowers and brokers right now.
"Some lenders have in the past charged large penalty fees when a loan term reaches maturity often equal to 5% of the loan amount making the process of extending an expensive exercise. TAB is now offering a guaranteed extension which is welcome news to the market."
