Dragonfly’s bridge-to-let product is a 2 or 3-year fixed rate product with an initial 7-month bridge period built-in.
Interest during both the initial bridge period and the remaining term of the 2 or 3-year loan is charged at 0.749% pm (8.99% pa).
If borrowers select the deferred interest option, this lowers the pay rate further to just 0.583% pm (6.99% pa).
Bridge-to-let enables borrowers to redeem the loan free of penalties within the 7-month bridge period.
If they are not able to redeem the loan within that period, borrowers have the safety net of seamlessly switching into Dragonfly’s two- or three-year medium-term loan.
This happens automatically, without the need for any further underwriting or additional documentation.
The minimum loan size for the bridge-to-let product is £1m and the maximum loan size is £25m. An initial tranche of £50m has been put aside for the launch. Dragonfly’s bridge-to-let product is especially suitable for borrowers who need to do minor works to their property in the bridging period and want the assurance of a guaranteed buy-to-let loan to take out the bridge.
Jonathan Samuels, CEO, Dragonfly Property Finance, said: “Bridge-to-Let gives borrowers the best of both worlds: the lowest ever interest rate on a bridging loan and a powerful built-in protection mechanism.
“With the typical bridging loan rate roughly 1.15% pm, the bridge we have built into the front end of this product — at 0.749% pm — is truly exceptional.
“And if borrowers can’t redeem within seven months, they are simply switched onto our medium-term product without needing to be underwritten for a second time.
“This product is both a hedge and a hugely powerful acquisition tool for professional property investors.”