Auction Finance has launched two new bridging loan products at its lowest ever rates.
The three-month and six-month low rate bridge products offer a monthly interest rate of 0.75% on a typical loan to value of 70%. Up to 100% funding is also available with supporting security.
The flexible low rate bridge products come with a no exit fee option and can be redeemed fully or in-part at any time. The provider says the three-month bridge was created in response to a growing number of customers looking to redeem their loans early.
Auction Finance works with a number of auction houses including Barnard Marcus, Edward Mellor, Clive Emson, Graham Penny and Eddisons.
Loans typically vary from £25,000 to £1 million, with an average loan size of £74,500.
Chris Baguley, director of Auction Finance Limited, said: “We have seen a sharp rise in the number of property investment purchases at auction throughout 2012 and the start of 2013.
“This has been fuelled both by new investors entering the buy-to-let market, attracted by low property prices with high yield potential and seasoned investors looking to increase their portfolios.
“With this surge in demand, and as a principal lender with our own substantial funding, we have been able to reduce our rates and pass on the benefits to these investors.
“Our aim is to continue to offer our customers competitive finance options and further establish our position as the market leading lender within the auction finance sector.”
