The Alternative Bridging product is available for terms of three to five years, up to 70 per cent loan to value (LTV). It offers a maximum loan size of £4m. 

The lender said the ERC-free feature would give borrowers the flexibility to refinance onto a longer term product more easily. 

It can be used for purchase, refinance and property refurbishment. The loan can be structured to align with a borrower’s cash flow, such as allowing interest to be accrued. 

Jonathan Rubins (pictured), director at Alternative Bridging Corporation, said: “There is much speculation that interest rates may have peaked and the mortgage price war in the mainstream market would certainly suggest this.  

“The truth is, however, that nobody knows what will happen in the future and while some borrowers are opting for bridging to buy time to see what will happen, a term loan from a specialist lender like Alternative Bridging is sensible middle ground between a bridge and a longer-term lender, particularly when there are no ERCs, as is the case with our term loan.” 

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He added: “The removal of ERCs provides borrowers with the peace of mind that they won’t be hit with any hefty fees if interest rates do come down and they spot an opportunity to switch to a longer-term product.”