Dragonfly Property Finance’s new loan product is a hybrid of a two or three-year fixed rate product and an initial seven-month bridging period and is available at up to 70 per cent LTV.

The new offering also promises the UK’s lowest-ever bridging loan rate for its LTV: during both the initial bridge period and the remaining term, interest is charged at a monthly rate of 0.749 per cent (8.99 per cent yearly).  

The Bridge-to-Let product will also enable borrowers to redeem the loan within the seven-month bridging period free of any financial penalties. 

Should customers be unable to redeem the loan in this time, their loan will automatically switch into Dragonfly’s two or three-year medium-term product.

This automatic switch will give Dragonfly’s customers a so-called “safety-net” without the need for any additional underwriting or documentations.

Loans are available with a value of £1 million to £25 million, with Dragonfly setting aside an initial tranche of £50m to cover the launch of the product.

The product is especially suited for borrowers who need to do minor works to their property within the initial seven months and would like the assurance of a buy-to-let loan to take out the bridge.

It will also help those weary of less-flexible bridging rates and terms, especially those products which charge early repayment fees.

Speaking about the new product, Jonathan Samuels, CEO of Dragonfly Property Finance, said: “Bridge-to-Let gives borrowers the best of both worlds: the lowest ever interest rate on a bridging loan and a powerful built-in protection mechanism.

“With the typical bridging loan rate roughly 1.15 per cent monthly, the bridge we have built into the front end of this product — at 0.749 per cent per month — is truly exceptional and, if borrowers can’t redeem within seven months, they are simply switched onto our medium-term product without needing to be underwritten for a second time. 

“This product is both a hedge and a hugely powerful acquisition tool for professional property investors.”