Dragonfly Property Finance has today launched the UK’s first ‘bridge-to-let’ product – a hybrid of a short and medium term loan that boasts the lowest bridging loan rate ever offered in the UK at 70% LTV.
Dragonfly’s bridge-to-let product is a 2 or 3 year fixed rate product with an initial 7 month bridge period built-in.
Interest during both the initial bridge period and the remaining term of the 2 or 3 year loan is charged at 0.749% pm (8.99% pa).
If borrowers select the deferred interest option, this lowers the pay rate further to just 0.583% pm (6.99% pa).
Bridge-to-let enables borrowers to redeem the loan free of penalties within the 7 month bridge period.
If they are not able to redeem the loan within that period, borrowers have the safety net of seamlessly switching into Dragonfly’s two or three year medium-term loan.
This happens automatically, without the need for any further underwriting or additional documentation.
The minimum loan size for the bridge-to-let product is £1m and the maximum loan size is £25m. An initial tranche of £50m has been put aside for the launch. Dragonfly’s bridge-to-let product is especially suitable for borrowers who need to do minor works to their property in the bridging period and want the assurance of a guaranteed Buy-to-let loan to take out the bridge.
Jonathan Samuels, CEO, Dragonfly Property Finance, said: “Bridge-to-Let gives borrowers the best of both worlds: the lowest ever interest rate on a bridging loan and a powerful built-in protection mechanism.
“With the typical bridging loan rate roughly 1.15% pm, the bridge we have built into the front end of this product — at 0.749% pm — is truly exceptional.
“And if borrowers can’t redeem within seven months, they are simply switched onto our medium-term product without needing to be underwritten for a second time.
“This product is both a hedge and a hugely powerful acquisition tool for professional property investors.”
Dragonfly is on Complete Mortgages’ extensive bridging lender panel and we also have whole of market access for buy to let mortgages. Please contact one of our bridging loan or buy to let experts at out Guildford office on 01483 233014. We also have a member of our commercial / bridging loan sales team based in London.