Mercantile Trust has updated its bridging proposition, cutting rates, as well as expanding its lending proposition to support those otherwise underserved. It has also set up a dedicated mortgage desk to improve broker service.

The residential product range now includes: ‘micro’, light and heavy refurbishment and second charge bridging products.

Following rate reductions of up to 0.25 percentage points, rates now start from 0.75%.

The bridging proposition now consists of:

Residential bridging loan:

• When there are no works required, loans are available from £50,000-£500,000 as both a first and second charge up to 75% LTV.

Micro bridging loan:

• Loans are available from £25,000-£49,999 as either a first or a second charge up to 75% LTV.

Light refurbishment bridging loan:

• Loans are available from £50,000-£500,000 as either a first or a second charge up to 75% LTV.

Heavy refurbishment bridging loan:

• For properties in need of significant structural improvements that require planning such as wrap around extensions, digging into the basement, loft conversions etc. Loans are available from £50,000 up to £500,000 as a first charge only up to 75% LTV.

Second charge bridging loan:

• Loans are available from £50,000 – £250,000 up to 75% LTV.

To support these changes, Mercantile Trust has created a designated mortgage desk as a central point of contact for broker enquiries and referrals. The objective of the mortgage desk is to ensure that each and every case is assessed on its individual merit and to provide brokers with clarity on what is required from the outset.

All of Mercantile Trust’s bridging products come with the ability to refinance to term and no Early Repayment Charges; interest is calculated daily with the ability to service or roll the interest.

Maeve Ward, director of commercial operations at Mercantile Trust, said: “We’ve spent considerable time talking to brokers about how to make our proposition clearer and more attractive to borrowers. Our new range offers keenly priced products that cater for a wide variety of scenarios.

“Alongside these product improvements, our new mortgage desk has been designed to make the broker and customer journey smoother.

“These changes are just the beginning of a whole series of significant improvements to our products that you will see from Mercantile Trust over the coming weeks and months.”