TAB has launched a ‘life cycle’ mortgage, which allows borrowers to take out an initial bridging loan to purchase a property, which can later be extended to cover renovation costs and then converted into a longer-term loan.
The lender’s new TAB Series product is designed to guide real estate investors through every stage of the acquisition and development process and then provide long-term commercial financing.
Under the new product, TAB will lend up to £7.5 million and claims borrowers can save up to 2.75% on fees and lower legal costs and valuations by dealing with a single lender at every stage of the process.
But the lender has yet to announce rates for each stage of its lifecycle product
TAB says it will also move to open market values instead of 180-day valuations for home bridging loans up to £2.5m
Open market values are typically higher than 180-day appraisals, which are based on the price a property would be expected to fetch if it were to be sold within that limited time frame.
TAB is also reducing residential bridging loans to 4.99% per annum above the base rate, which means a current wage rate of 10.24%.
Chief executive and founder Duncan Kreeger said: “I am pleased to introduce the TAB Series to the market, our latest innovation designed to meet the needs of borrowers struggling with a changing interest rate environment.
“This bespoke solution, carefully crafted by our team, addresses a significant gap in the market and promises seamless support for borrowers at every stage of their real estate journey.
“By prioritizing their needs, from acquisition to management to sales, combined with the other changes we announced today, borrowers can take advantage of opportunities that otherwise might not have been affordable.”