This new rate is only available on properties within the M25 area and is subject to Tiuta’s standard fee scales which stand at £495 in upfront legal fees and a £495 admin fee which is deducted on completion. Tiuta also charges a 1 per cent arrangement fee, which is also deducted on completion.

Guy Garrard, head of business development at Tiuta, commented: "We have always been transparent regarding our fee-charging structure and despite this being a market-leading offering we are delighted to confirm that our standard fee scales apply."

Tiuta’s decision to tailor this new rate within the M25 basin reflects the increasing demand for short term lending within the Capital. And whilst other parts of the country may not be able to reap the benefits of the new rate, the decision to lend in one’s ‘comfort zone’ may not be such a bad thing according to some.

Craig Scott, Director of Bromley based Commercial 1 Limited, said: “The product looks pretty good and caters for most areas although it is restricted to within the M25 which is where the funder appears to be more comfortable."

It was also announced yesterday that newly formed packager ‘Brightstar Financial’, created by Rob Jupp, ex-director at Savills lending solutions, has established a strong relationship with Tiuta. By launching his new business in parallel with the new bridging product, Robb Jupp was able to open trade with highly attractive rates. It was also recently announced that Tiuta is financially backing Brightstar’s launch.

Craig Scott commented: “It’s nice to see Rob back in the market and it comes as no surprise that he has rekindled his working relationship with the guys at Tiuta.”

Many in the industry welcome the new competition and are applauding Tiuta’s ability to cater for the demands of its customers at a time when traditional lending seems unable to fill the void.

In offering such a competitive rate, Tiuta is following a trend set by both Lancashire Mortgage Corporation and Drawbridge bridging finance. Drawbridge offer rates as low as 0.75 per cent on a two to three year loan facility and 0.99 per cent on twelve months or less. Lancashire Mortgage Corporation also offer a similar rate of 0.75 per cent.

Gary Bailey, Director at Blemain Group, said: “It’s always good to see lenders launching new products in the current market to cater for the rising demand for bridging loans. Lancashire Mortgage Corporation currently offer a three month bridge with a rate of 0.75 per cent, available nationwide, and we’ve seen good levels of business on this product.”

Mark Posniak, Marketing & Operations Director, Drawbridge Finance, added: “Market-leading rates are one thing but equally important in the current climate is the appetite and ability to lend in both large and small amounts, as well as a readiness to look at deals that fall slightly outside the tramlines."

And whilst smaller bridging lenders may feel unable to compete with such low rates, the trends show that both brokers and their clients often look for all of the 3 Rs: Rate, Reliability & Relationships (In no particular order).