LendInvest has launched a new three-year bridge product as a funding alternative to a conventional buy-to-let loan.
It has been designed for experienced borrowers who are looking to raise capital, or looking to acquire a lower yielding property.
Interest is charged at 6.99% per year (pay rate 4.99% with 2% interest deferred). It is available on loans between £100,000 and £2 million and on terms from one to 36 months.
The product has a maximum loan to value of 70% on day one (rising to 75% as interest on the loan is deferred and rolled up). It requires an 110% interest cover minimum.
Matthew Tooth, chief commercial officer at LendInvest, said: “Following an influx of enquiries from borrowers seeking to purchase or raise additional capital against a low yielding property, we developed this product with this niche audience in mind.
“The three-year bridge acts as an alternative to a mainstream buy-to-let product, tailoring a traditional bridging loan for a longer term.”