Lender TAB is reintroducing fixed rates for first charge residential bridging loans.
Residential bridging loans up to £750,000 and with an LTV of up to 70%, including the cost of borrowing, are eligible for the new fixed rate.
For loans up to 60% LTV, the rate starts at 0.90% per month. For loans up to 65% LTV, the rate is from 0.95% per month and for loans up to 70% LTV has a rate from 1.00% per month. Terms range from one to 24 months and there are no exit fees.
While the focus of the reworked range is residential properties, TAB says it will consider loans secured against commercial properties.
Duncan Kreeger, CEO and founder of TAB, said: “With the base rate shifting last spring, we had to find a balance between supporting our borrowers and supporting our business. The solution was to become the first bridging lender to introduce tracker rates. But we are an innovative lender and we are always looking to improve and push ourselves to do better. As the market stabilises, we wanted to provide more options for our customers. Reintroducing fixed rates, to complement our tracker products, was one of them. Your payments won't go up for the duration of the loan, no matter how high rates go. And you'll know exactly what you'll pay so you can budget around it.
“Some things aren’t changing. The service will remain as efficient as with our variable rate products and we continue to be flexible and consider projects that traditional lenders may not. We have the property market experience to recognise potential. Our goal is to continue helping borrowers unlock the capital they need for projects such as the purchase of investment properties, breaking chains, capital raises, the completion of refurbishment and refinancing.”
The new range complements TAB’s existing first charge tracker loans, including a residential bridging finance product for loans up to £15,000,000 from 7.99% per year over the Bank of England base rate — and a first charge commercial loan tracker product from 8.50% per year over the Bank of England base rate at a maximum LTV of 70%.
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