Exclusive: Improvements made to the industry's "only genuine" bridge-to-let product

London-based specialist lender, Dragonfly Property Finance, has broadened its market-leading ‘Bridge-to-Let’ product.

Dragonfly’s Bridge-to-Let product allows borrowers to move into a medium-term loan of two or three years automatically, without the need for any further underwriting or additional documentation.

Mark Posniak, Head of Sales & Marketing, Dragonfly Property Finance, commented:  “We firmly believe ours is the only genuine Bridge-to-Let product on the market. If borrowers can’t redeem within seven months, they are switched onto our medium-term product without needing to be underwritten for a second time.

“With other products on the market, this simply isn’t the case. Having listened to our introducers, we decided to halve the minimum loan size, which opens this unique product to a whole new range of property investors.

“We’ll be at The Finance Professional show on Wednesday and look forward to answering any questions there.”

The minimum loan size on the original Bridge-to-Let product remains at £1 million, but Bridge-to-Let has now been extended to a mid-range product with loans starting from £500,000.

During the 7-month bridge facility, interest on loans between £500,000 and £999,000 (up to 70 per cent LTV) are charged at 10.99 per cent pa. If borrowers select the 2 per cent deferred interest rate option, the pay rate falls to 0.749 per cent pcm (8.99 per cent pa).

From month eight onwards, the point at which the bridge facility converts into the medium-term loan (if the loan has not redeemed), the interest rate falls to 8.99 per cent pa.

The original Bridge-to-Let product remains exactly the same. On loans of £1m+ (up to 70 per cent LTV), interest is charged at 8.99 per cent pa. Again, if the deferred interest rate option is selected, this reduces the pay rate to 0.583 per cent (6.99 per cent pa).