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LendInvest Launches New 3-Year Bridge Product
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
LendInvest, the leading specialist mortgage lender, has launched a new three-year bridge product as a funding alternative to a conventional buy-to-let loan.
LendInvest Launches New 3-Year Bridge Product
The three-year bridge loan has been specifically designed for experienced borrowers who are looking to raise capital or are looking to acquire a lower yielding property.
Interest on the three-year bridge product is charged at 6.99% per year, at a pay rate of 4.99% with 2% interest deferred.
It is available on loans worth between £100,000 and £2m, and is offered on terms from one to 36 months.
The maximum loan-to-value ratio (LTV) of the three-year bridge product is 70% on day one, rising to 75% as interest on the loan is deferred and rolled up.
There is also an 11% minimum interest cover.
The Chief Commercial Officer at LendInvest, Matthew Tooth, comments on the launch: “Following an influx of enquiries from borrowers seeking to purchase or raise additional capital against a low yielding property, we developed this product with this niche audience in mind. The three-year bridge acts as an alternative to a mainstream buy-to-let product, tailoring a traditional bridging loan for a longer term.”
The launch marks further expansion of the LendInvest product range. The three-year bridge loan is LendInvest’s third product launched this year, following the successful rollout of pre-construction finance in April and refurbishment finance in February.
Research from Paragon Mortgages revealed yesterday that there has been an increase in demand for specialist residential mortgage products.
Meanwhile, another study has found that landlords still have an appetite for future property investments, despite the Government’s recent and ongoing reduction in tax relief on their finance costs.
Are you looking to invest further in the property market? Perhaps the new offering from LendInvest could be the right loan for you.
Remember to take the Government’s tax changes into account when taking out a buy-to-let mortgage.
