Dragonfly Property Finance has launched a two-year buy-to-let product at 6.99% p.a.
Borrowers can choose to defer 2% of the interest payable, creating an effective pay rate of 4.99% p.a.
The arrangement fee on the new two-year buy-to-let product remains at 2.5%, while the minimum loan size is £50,000 and the maximum £1.5m.
The rental coverage 100% at the chosen pay rate. A 3% ERC applies for the fixed rate period but not in the final three months of the loan term. If borrowers choose to pay 4.99% p.a, the 2% deferred interest is payable upon redemption.
D’mitri Zaprzala, head of sales at Dragonfly Property Finance, said: “Securing a buy-to-let mortgage from a high street lender is becoming harder by the day, especially for non-standard landlords. But this is a lending gap we are more than happy to fill.
“At Dragonfly, we pride ourselves on being able to take a view on individual borrowers, however unusual their circumstances or requirements. We don’t box tick but look at each application on its merit and make a decision based on that.
“At a time when mainstream lenders are tightening their buy-to-let criteria, we are open for business and this latest product launch will hopefully make that very clear to brokers.”