West One Loans has launched a bridging range with variable interest rates linked to the Bank of England base rate.
The range is available at up to 70% loans offered across all of the specialty lender’s existing bridging product categories, including regulated and unregulated.
Pricing starts from 70 basis points plus base rate for residential loans and 85 basis points plus base for commercial loans.
These follow-on products will complement the company’s existing fixed-rate bridging products, which cover a range of lending situations, including regulated and unregulated, residential and commercial securities, as well as purchase and land refinancing.
The move comes after the Bank of England raised interest rates by 50 basis points to 1.75% last month, its biggest hike since 1995, which took the base rate to a new high of 40 years. This is the sixth rate hike since last December.
Nick Jones, sales manager for West One’s bridging division, said: “Although interest rates have risen recently, it is possible that they will begin to stabilize – or even fall – in due course.
“That means setting rates for shorter-term projects isn’t always the best option. By offering this new lower tracking rate in addition to our range of fixed rates, we are giving our intermediaries and their clients access to a wide choice of financing options at competitive prices. »