With interest-only loans fast disappearing from the high street, the new product is likely to act as a powerful portfolio tool for professional property investors and landlords.
Both the 4 and 5-year products are available up to 70% LTV and are priced at 8.49%, with the option to defer 1% until redemption of the loan (giving an effective pay rate of 7.49%).
The loans are exclusive to properties in England and require 100% rental cover. A sliding scale of early repayment charges applies of between 6% and 3%.
Dragonfly Property Finance now offers a full range of medium-term buy-to-let products, ranging from 2–5 years in length.
Jonathan Samuels, CEO, Dragonfly Property Finance, commented: “The demand for buy-to-let is growing by the day and yet the feedback we receive from brokers is that the products simply aren’t there to meet it.
“Landlords want interest only but with the high street banks as risk-averse as ever increasingly they’re not getting it.
“The new 4 and 5-year buy-to-let products emerged from these conversations with brokers and are a natural extension to our popular 2 and 3-year products. “What’s very clear is that alternative finance has taken root in the UK. The monopoly of the high street banks in relation to property finance is well and truly over.
“In fact, you could say that alternative finance is fast becoming mainstream.”