The new offering features a hybrid of serviced and retained interest
Bridging lender London Credit has introduced a new buy-to-let product, aimed at assisting property investors during a period of market uncertainty.
The lender’s new offering is a hybrid buy-to-let product with a two-year term that allows investors to service part of the loan while retaining the remaining interest, which is payable upon redemption.
Available for residential and semi-commercial properties, the product features a maximum loan-to-value (LTV) ratio of 70% at redemption. Borrowers have the option to exit the loan without penalty after six months.
London Credit also provides bridging loans ranging from £100,000 to £3.5 million on residential, commercial, and semi-commercial properties. It primarily operates in London, the South East, and major cities across the UK.
The loans are available for periods ranging from three to 18 months and cater to various needs such as product refurbishment, auction finance, and capital raising. It has recently increased the maximum LTV ratio for its residential loans to 75%, but for commercial and semi-commercial loans, the maximum remains at 65%.
“We’ve been asked by a number of brokers to develop something to help their clients to navigate immediate uncertainty in the buy-to-let market, and this new product, which enables a hybrid of serviced and retained interest, does just that,” said Marios Theophanous (pictured), credit manager at London Credit.
“The product is available for a term of two years, but borrowers can exit it without penalty after just six months, providing them with the flexibility they need to respond to market changes as they choose.
“We think that this product will empower investors to take control of their investment and make longer term decisions at the right time.”
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