The change applies to its standard bridge product, which can include light cosmetic work such as kitchen or bathroom upgrades if the works do not exceed 7.5 per cent of the property value.
For loans between £100,000 to £500,000, the rate is 0.75 per cent per month, and for loans from £500,000 to £1m, the price is 0.79 per cent per month.
Alex King, executive director of Lendco, said: “With demand for bridging loans increasing throughout this year, we’re very pleased to offer this product to support our brokers and their clients further. As a live example, on a loan of £500,000, the flexibility of our terms means the client can carry out up to £50,000 of decorative works.”
He added: “This offers the possibility of adding substantial value to the property, which, in turn, could have a massive impact on the revaluation and potential entry of the stock into the buy-to-let space.”