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 up to 70% for up to 70% loan to value and has a pay rate of up to 70% , with 1% of the interest deferred. The loan is designed for experienced borrowers, offering an income coverage ratio of 110% rather than complying with the Prudential Regulation Authority's buy-to-let stress tests. There is an early repayment charge of 3% in the first year , 2% in the second and 1% in the second , with no charge in the first year of the loan.