Mario Berti

Octopus drops residential bridging rates



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Octopus Property has reduced its rates on its residential bridging loan range as it looks to revamp its entire lending suite.

The property finance lender, which has completed over £2.3bn of loans to date, has cut its residential bridging rate with a loan-to-value of up to 50% to 0.6%.

The significant rate reductions will take place across all major loan-to-value bandings with immediate effect.

What are Octopus Property’s new bridging rates?

LOAN-TO-VALUE    INTEREST RATE (PM)

Up to 50%                        0.60%
50.1-55%                      0.65%
55.1-60%                      0.70%
60.1-65%                      0.75%
65.1-70%                      0.80%

The change in rates will be the first phase of a comprehensive product update by Octopus on its entire loan range, which includes buy-to-let, commercial, refurb and development finance.

The rest of the changes will be rolled out during 2017 as it looks to deliver a strong proposition to brokers and their clients.

Mario Berti, CEO of Octopus Property, said the lender wanted to send out a clear message to the broker community that it was very much open for business.

“The overhaul of our product range that we will be announcing in 2017 – starting today with our bridging loans – is the most significant since we started trading back in 2009.

“The sector has evolved considerably over the past eight years and we felt it was time to evolve our own proposition fundamentally in order to continue to provide a best-in-class offering.

“It goes without saying that, as well as some of the best rates available, brokers will also enjoy the service levels and flexibility that Octopus Property has always been renowned for.”

Octopus’ announcement follows a wave of rate cuts across the bridging sector.

Last month, Precise Mortgages launched new bridging rates of 0.54% per month.

This came just days before Masthaven announced that it was slashing rates to as low as 0.49% on its first charge bridging products.

For a comprehensive list of lenders' different rates, visit The Index.

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