TAB launches tracker bridging product

TAB has introduced a new tracker product range to sit alongside its fixed-rate loans, following the Bank of England’s recent interest rate increase.

Prices for the new TAB tracker suite start from 6.80% per annum over base rate — currently available from 7.80% per annum or 0.65% per month.

The new range offers loans up to £10m for a maximum of 24 months, with LTVs going up to 70% for residential bridging and 65% for commercial.

The lender has also introduced tracker options to its development finance range, which offer the same loan sizes and terms as the fixed-rate counterparts — rates for the development finance tracker start from 0.75% per month or 9% per annum.

TAB tracker was developed for borrowers who are planning a quick sale, want to take advantage of a cheaper interest rate, or don’t expect rates to rise during their term.

Duncan Kreeger, CEO and founder of TAB (pictured above), said: “In the residential market, fixed-rate mortgages are more expensive than tracker rate mortgages; with a fixed-rate loan, the borrower is paying more for the security of knowing what their interest rate will be for the duration of the deal.

"This new product allows us to sharpen our pricing and keep rates as low as possible, while other lenders may speculatively and arbitrarily raise fixed rates to protect themselves against base rate increases. 

“If borrowers are confident that they can cover the payments if the bank rate goes up, the TAB Tracker may appeal to them. 

“It’s a bold, radical reform, and I don’t think anyone else is making the effort to innovate like this and help their customers. 

“We’ve also taken the decision to quote the interest on our loans annually — we like to be transparent, as well as innovative.”

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