The new ‘baby’ loans cater for borrowers looking for smaller amounts between £3000 and £10,000 and have a maximum LTV of 60% including fees and a rate of 13.9%.
According to Dave Pinnington, business development manager of V Loans, the market has been crying out for this type of facility, which offers a much lower minimum loan size than usual.
"While there has been a shortage of funding generally, it has been difficult to borrow small amounts as lenders have not seen it as economical. We are pleased that Link Loans have understood the problem and introduced this product. Clients we are dealing with have specific reasons for borrowing, and not every client wants to take on larger amounts than they really need."
