Dragonfly Property Finance has launched a new ‘bridge-to-let’ product for smaller loan sizes.
The seven month bridging facility is for loans between £500,000 and £999,000, up to 70% LTV, and will charge borrowers at 10.99% per annum. If borrowers select the 2% deferred interest rate option, the pay rate falls to 0.749% per calendar month, equivalent to 8.99% a year.
After seven months, the loan, if it is not redeemed, is automatically converted into a medium term two or three year loan and the interest falls to 8.9%.
Dragonfly’s existing product for loans of £1m remains the same – with interest charged at 8.99%. It also automatically turns into a medium term loan after the initial seven month bridge.
Dragonfly’s head of sales and marketing Mark Posniak said: “Having listened to our introducers, we decided to halve the minimum loan size, which opens this unique product to a whole new range of property investors.”