Marsden Building Society has launched an initiative for a short-term lending solution which offers an alternative to a bridging loan.
Designed to support intermediaries who have clients between properties and need a mortgage to support their move, the mortgage allows clients to take a term up to a maximum of two years with no early repayment charges.
Steve Robinson, head of lending at the Marsden, said: “We continue to develop our lending solutions and pride ourselves on being a niche lender.”
“We were finding many intermediaries looking for options for their clients who are in the process of buying and potentially need a short-term mortgage.
“The mortgage follows the same process as our standard residential mortgages and as we individually underwrite cases, we will take the same level of personal care to support.”
The product has a maximum of 2-year product term and is available on interest-only up to 60% LTV. It’s a variable rate of 5.24% with a £299 booking fee and a £1,200 arrangement fee, which can be added to the mortgage, and offers brokers a proc fee of 0.4%.
Clients can walk away from the mortgage at any time during the 2-year term as the product has no early repayment charges.
Robinson added: “This is a new initiative that we’re trialing in the market and welcome feedback from brokers and their clients.”