LendInvest has launched a product for property investors it defined as a ‘3-year bridge’. The loan costs 6.99% to 70% loan-to-value but has a pay rate of 4.99% with 2% of the interest being deferred. The product is intended as a hybrid between bridging and buy-to-let for those who are willing to pay more to raise capital or who want to acquire a low yielding property. LendInvest hires Andy Virgo as Southern England BDM It has an income coverage ratio of 110% rather than complying with the Prudential Regulation Authority’s buy-to-let stress tests and is designed for experienced borrowers. Matthew Tooth (pictured), chief commercial officer at LendInvest, said: “The product is called a bridge because it’s more expensive than mainstream buy-to-let but investors can use it to raise money. “It’s also not as restrictive in terms of PRA criteria.” The product comes with a 3% early repayment charge in the first year, 2% in the second year and 1% in the third, while there is no charge in the last three months of the loan. The maximum LTV can rise to 75% as the interest is rolleded up.
LendInvest has launched a three-year bridge product for property investors that is intended to be a hybrid between bridging and buy to let. It costs 6.99% for up to 70% loan to value and has a pay rate of 4.99%, with 2% of the interest deferred. The company said it was looking at other ways to make money from its new product, including offering loans on properties in areas where there are no mortgage lenders or letting them out as short-term lets. There is an early repayment charge of 3% in the first year, 2% in the second and 1% in the third, with no charge in the last three months of the loan.