Funding 365 is relaunching its Stepped Rate Bridge product with interest starting at 0.49% per month for the first six months.
From months seven to 12 the interest rate steps up to 1.15% per month and there is an exit fee of 1.15%.
These rates apply to loans up to 65% LTV. Up to 75% LTV is available, with interest starting at 0.59% per month for the first six months.
The first charge, unregulated product delivers loans between £200,000 and £5 million secured against residential properties across England and Wales. Permitted uses include property purchase, refinance, refurbishment and development exit.
In line with all of Funding 365’s products, there are no admin fees or early redemption charges (subject to a three-month minimum term). These rates are based on a 1.5% broker commission.
Mike Strange (pictured), Funding 365’s director, said: “Our flat rate residential bridge product offers some of the best interest rates in the industry, but we found that a few brokers were still asking us to bring back our stepped rate product. Whilst niche, this product is worth keeping in mind for those clients who would benefit from a lower initial interest rate and/or who believe that they will be able to exit their loan early.
“This makes it particularly suited to landlords who are looking to purchase investment property before finding tenants and exiting on to a buy-to-let mortgage, or developers who are looking to exit their development funding and are already in the process of selling their properties.”
