Newcastle Building Society has announced the launch of its new Day 1 bridging product which is designed to provide a fast bridging option for buy to let investors.
The Day 1 Bridge complements the existing 30 day bridging product which has proven very popular with brokers and their clients. The unique selling point of the Day 1 Bridge, just like the 30 day bridge, is that it provides investors with the opportunity to purchase buy to let property virtually as a cashless process, with Newcastle providing up to 100 per cent of the purchase price, provided it does not exceed 85 per cent of the value. This is especially useful where properties are being bought at a discount.
Newcastle's bridging products are on a closed basis, whereby there is a mortgage offer from another lender who will have agreed to refinance the bridge with the lender. That lender views the transaction as a straight remortgage at 85 per cent of value.
Whereas the 30 day bridge charges interest for a minimum of 30 days, the Day 1 Bridge is structured around same day completion and redemption. The charging structure between the products is different however they do increase the options available to the broker and their client.
Steven Marks, lending and operations executive at Newcastle Building Society, commented:
"Newcastle Building Society is delighted to launch a market leading One Day Bridge product - the Society's most recent offering to the bridging loan market. This product is designed to enhance the product choices open to investors and the comparable rates offered ensure that brokers are provided with an attractive and competitive bridging product.
"Newcastle Building Society is confident that the Day 1 Bridge will provide buy to let investors with further options to grow their portfolios while considering the best use of their cash resources."
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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