Dragonfly launches deferred interest product for landlords

by: Edward Murray
  • 26/09/2016
  • 0
Dragonfly launches deferred interest product for landlords
Specialist lender, Dragonfly Property Finance, part of the Octopus group, has launched a two-year buy-to-let product with a rate of 6.99% and the option for borrowers to defer 2% of the interest payable.

If borrowers choose to defer, they will be charged 4.99% per annum, and the 2% deferred interest is payable upon redemption.

D’mitri Zaprzala, head of sales at Dragonfly Property Finance, commented: “At a time when mainstream lenders are tightening their buy-to-let criteria, we are open for business and this latest product launch will hopefully make that very clear to brokers.”

The arrangement fee on the new two-year buy-to-let product remains at 2.5%, the minimum loan size is £50,000, the maximum £1.5m, and the rental coverage 100% at the chosen pay rate. A 3% Early Redemption Charge (ERC) applies for the fixed rate period but not in the final three months of the loan term.

Dragonfly said the new product was aimed particularly at borrowers who wanted larger, bespoke loans and ‘non-standard’ borrowers with unconventional circumstances or requirements. These include:

  • Semi-commercial properties
  • 100% rental calculation
  • Company-structured applications (including on- and offshore entities and trusts)
  • No minimum background income
  • Rental shortfalls
  • Houses of Multiple Occupancy (HMOs)
  • First-time landlords
  • Maximum age beyond typical retirement
  • Unusual property types

Zaprzala added: “Securing a buy-to-let mortgage from a high street lender is becoming harder by the day, especially for non-standard landlords. But this is a lending gap we are more than happy to fill.”

In June this year, Dragonfly Property Finance confirmed it had advanced more than £2bn of loans since launch in 2009.

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