Dragonfly Property Finance has broadened its Bridge-to-Let product.
Borrowers can move into a medium-term loan of two or three years automatically, without the need for any further underwriting or additional documentation.
The minimum loan size on the original Bridge-to-Let product remains at £1m, but Bridge-to-Let has now been extended to a mid-range product with loans starting from £500,000.
During the seven-month bridge facility, interest on loans between £500,000 and £999,000 (up to 70% LTV) is charged at 10.99% pa. If borrowers select the 2% deferred interest rate option, the pay rate falls to 0.749% pcm (8.99% pa).
From month eight on, the point at which the bridge facility converts into the medium-term loan (if the loan has not redeemed), the interest rate falls to 8.99% pa.
The original Bridge-to-Let product remains exactly the same. On loans of £1m+ (up to 70% LTV), interest is charged at 8.99% pa. Again, if the deferred interest rate option is selected, this reduces the pay rate to 0.583% (6.99% pa).
Mark Posniak, head of sales and marketing, Dragonfly Property Finance, said: “We firmly believe ours is the only genuine Bridge-to-Let product on the market. If borrowers can’t redeem within seven months, they are switched onto our medium-term product without needing to be underwritten for a second time.
“With other products on the market, this simply isn’t the case. Having listened to our introducers, we decided to halve the minimum loan size, which opens this unique product to a whole new range of property investors.”