Lender widens bridge-to-let criteria

Published on

Dragonfly Property Finance has broadened its Bridge-to-Let product.

Borrowers can move into a medium-term loan of two or three years automatically, without the need for any further underwriting or additional documentation.

The minimum loan size on the original Bridge-to-Let product remains at £1m, but Bridge-to-Let has now been extended to a mid-range product with loans starting from £500,000.

During the seven-month bridge facility, interest on loans between £500,000 and £999,000 (up to 70% LTV) is charged at 10.99% pa. If borrowers select the 2% deferred interest rate option, the pay rate falls to 0.749% pcm (8.99% pa).

From month eight on, the point at which the bridge facility converts into the medium-term loan (if the loan has not redeemed), the interest rate falls to 8.99% pa.

The original Bridge-to-Let product remains exactly the same. On loans of £1m+ (up to 70% LTV), interest is charged at 8.99% pa. Again, if the deferred interest rate option is selected, this reduces the pay rate to 0.583% (6.99% pa).

Mark Posniak, head of sales and marketing, Dragonfly Property Finance, said: “We firmly believe ours is the only genuine Bridge-to-Let product on the market. If borrowers can’t redeem within seven months, they are switched onto our medium-term product without needing to be underwritten for a second time.

“With other products on the market, this simply isn’t the case. Having listened to our introducers, we decided to halve the minimum loan size, which opens this unique product to a whole new range of property investors.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Landbay increases LTV and loan limits on Limited Edition AVM range

Landbay has expanded its Limited Edition range of automated valuation model (AVM) products, raising...

Santander raises loan to income limits in boost for buyers

Santander UK is raising its loan to income (LTI) thresholds, allowing some mortgage customers...

DPT marks 25th project milestone with Signature Property Finance

DPT Monitoring Surveyors has begun work on its 25th development finance project for Signature...

KSEYE reaches £1bn lending milestone

Specialist lender KSEYE has passed the £1bn mark in total lending, crediting strong broker...

Suffolk Building Society introduces higher income multiples for renters

Suffolk Building Society has increased its maximum income multiple to 5.49 for applicants with...

Latest publication

Latest opinions

Could a move to ‘enhanced advice’ also mean mandatory protection conversations?

The FCA’s recent Mortgage Market Discussion Paper (DP25/2) has got the industry talking about...

Take off the rose-tinted glasses and stop chasing a rate cut

Every six weeks the financial world raises its eyebrows at the prospect of a...

Job cuts to inflation shock: preparing for a mortgage arrears crisis

The latest data on jobs paints a picture of a rapidly weakening labour market. The...

URGENT! AI Is coming for you. Or maybe not…

I’ll try to make this as straight to the point as I can. The...

Other news

Landbay increases LTV and loan limits on Limited Edition AVM range

Landbay has expanded its Limited Edition range of automated valuation model (AVM) products, raising...

Santander raises loan to income limits in boost for buyers

Santander UK is raising its loan to income (LTI) thresholds, allowing some mortgage customers...

DPT marks 25th project milestone with Signature Property Finance

DPT Monitoring Surveyors has begun work on its 25th development finance project for Signature...