The product has been designed for experienced borrowers who are looking to raise capital, or looking to acquire a lower yielding property.
The bridge comes with interest of 6.99% per year – the pay rate is 4.99% with 2% interest deferred. It is available on loans between £100,000 and £2m with a maximum loan-to-value of 70% on day one (rising to 75% as interest on the loan is deferred and rolled up).
The product requires 11% interest cover minimum.
Matthew Tooth (pictured), chief commercial officer at LendInvest, said: “Following an influx of enquiries from borrowers seeking to purchase or raise additional capital against a low yielding property, we developed this product with this niche audience in mind. The 3-Year Bridge acts as an alternative to a mainstream buy-to-let product, tailoring a traditional bridging loan for a longer term.”
Chris Dailly, chief executive of Jumbo Bridging, said LendInvest is the latest bridging lender to extend its terms, plugging the gap left by mainstream lenders.
“It’s nice to see another product coming into the market to provide choice for borrowers. Nine years on from the credit crunch people still have problems getting development and commercial finance – the banks are still licking their wounds. That’s why bridging lenders are doing so well.”