The new option is available across its residential bridge, commercial, and refurbishment loan products
Short-term property finance specialist Tuscan Capital has announced the launch of a new base rate tracker option that will complement its existing range of fixed-price products.
The new option is available across Tuscan’s Fast Track residential bridge loans, as well as its commercial and refurbishment loan products.
Tuscan’s base rate tracker starts at 0.53% over bank base rate, and has a minimum term of three months with a maximum loan-to-value (LTV) of 75%. There are no exit fees or early settlement penalties.
If interest rates change during the loan term, the borrower will have the option to adjust the monthly payments or have the adjustment collected on redemption.
Read more: Tuscan Capital introduces ‘Fast Track’.
“Given the volatile economic conditions at present and with so much speculation about interest rates increasing over the short- to medium-term, we thought brokers should be armed with the option of fixed or variable interest rates across our product range,” Colin Sanders, chief executive at Tuscan Capital, said. “With interest rates trending upwards, finance providers in all markets will be looking to hedge their position for fixed-term products.”
Richard Deacon (pictured), sales director at Tuscan Capital, added that while the certainty of fixed rates can be appealing to customers, the costs for lenders to lock down their own funding becomes expensive in this environment.
“This can mean that fixed money isn’t the cheaper option, particularly when borrowing a short-term bridge loan,” Deacon said. “By Tuscan offering the choice of a base rate tracker or a fixed product, the broker can help the customer choose the best option for their circumstances. It also highlights Tuscan’s continued commitment to evolving and improving its proposition.”
