The aim of the launch is to give brokers greater control of the products and bring a more innovative approach to bridging finance. The product features include one rate of 1.25 per cent for all loan-to-values (LTVs) of the amount borrowed, with any rate charged over 1.25 per cent being paid as commission.
As part of the product enhancements, brokers can decide whether to apply exit fees and early repayment charges (ERCs) to any of the loans. For those that do add an exit fee or ERC, Blemain confirmed that 50 per cent would be paid as commission. The product also offers an interest only period of 12 months or longer if required and has no interest loading on roll-up, deferred payments, payment reductions or stage payments.
Average commission rates start at 1.5 per cent, while there is a 1 per cent lenders arrangement fee.
Commenting on the launch, Gary Bailey, director of the Blemain Group, said: “I am delighted to develop our bridging finance products to help put intermediaries in control of their bridging loans business. I believe the new criteria maintains us as market leaders in bridging finance and we are pleased to give intermediaries more choice for their bridging loan requirements.”
John Maclean, managing director at Link Lending, admitted the bridging loans market needed greater transparency if it was to appeal to intermediaries and borrowers. He said: “These terms and rates are certainly an improvement on what Blemain has been offering previously. Anything that offers brokers and customers more transparency is to be applauded.”
