Interest rate starts at 0.49% per month
Short-term property finance lender Funding 365 has relaunched its stepped rate bridge product, featuring an initial interest rate of 0.49% per month for the first six months that increases to 1.15% per month from the seventh to the 12th month, with an exit fee of 1.15%.
The rates are applicable to loans with a loan-to-value (LTV) of up to 65%. For loans extending up to 75% LTV, the initial interest rate is set at 0.59% per month for the first half-year.
The first charge, unregulated product is designed for loans from £200,000 to £5 million secured against residential properties located in England and Wales. Permitted uses include property purchase, refinance, refurbishment, and development exit.
There are no administrative fees or early redemption charges, assuming a minimum term of three months. The rates outlined are contingent upon a broker commission of 1.5%.
“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,” said Mike Strange (pictured), director at Funding 365.
“While 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.”
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