Dragonfly Property Finance has launched a new commercial term loan aimed at property investors.

The product is a three-year fixed-rate loan priced at 9.99% a year, available on property purchases and refinancing.

The borrower has the option to defer 2% pa until repayment of the loan, which reduces the pay rate to 7.99% pa.

It is available on a minimum loan size of £500,000, up to a maximum of £10m, on loans to value of up to 60%.

It is aimed at investors who need longer term solutions and carries an early redemption charge of 6%, which is payable at any time up to, but not including, the final month.

Ludo Mackenzie, head of commercial property at Dragonfly Property Finance, said: “Many investors want a short term bridge and value the flexibility to exit without penalty. However, for those investors that have a longer horizon and are able to service a 7.99% pa interest rate, this is a great product.

“In many cases, we expect to see bridge borrowers move onto the term loan once they have completed their asset management plans.

“The attraction is that they can arrange both loans from the outset and therefore remove any refinance risk, as well as cost.”