Octane Capital has reduced its risk rating given the improved outlook for the UK property market and broader political stability following the December general election result.
As a result, and with immediate effect, the lender will be lowering rates on its larger bridging, developer exit and refurbishment loans by up to 2% per annum.
The elder believed that a number of its larger loans will now become “some of the most competitive in the market”.
Mark Posniak, managing director, Octane Capital, said: “Like other lenders, we regularly review the macro-economic outlook and felt especially compelled to do so in the New Year following the decisive General Election result.
“Our in-house view is that a new environment of greater political certainty will see a lot of pent-up demand for property come through, with subsequent upward pressure on prices.
“We also believe that the Bank of England will counter any continued economic weakness with monetary easing, providing a further boost to the property market through lower borrowing rates.”
