Loans of up to £2.5m are available up to 24 months. The decision to reduce the rate was driven by a rise in demand from investors as semi-commercial property prices fall around the UK, according to Kunal Mehta, managing director.
Cheaper, non-residential stamp duty rates payable on semi-commercial premises that are later converted into residential properties are also driving demand, the lender said.
Under current stamp duty land tax (SDLT) thresholds, a residential property purchased for £200,000 would incur an £11,500 payment, compared to a semi-commercial building, which attracts a £1,000 fee.
Mehta (pictured) said: “We have offered commercial and semi-commercial bridging since our inception 10 years ago; they are very much the bedrock of our business, with increasing deal numbers every year.
“Last year, we boosted the Bridge 75 semi-commercial LTV to 75% in response to market conditions, and we have reacted again by reducing the rate to 0.95% per calendar month to further enhance our competitive offering against a backdrop of reducing semi-commercial property prices around the UK.”
The growth of ‘just-off-high-street’ lending
Sponsored by Pepper Money
At the beginning of the year, the firm hired James Holehouse as its sixth underwriter in preparation for a busier year.
