Dragonfly launches 2-year BTL loan

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Dragonfly Property Finance is launching a two-year buy-to-let mortgage at 6.99 per cent.

Borrowers can choose to defer two per cent of the interest until redemption, creating an effective pay rate of 4.99 per cent.

The mortgage is for loans between £50,000 and £1.5m, with a 2.5 per cent arrangement fee.

The rental coverage is 100 per cent at the chosen pay rate.

There is a three per cent ERC for the fixed rate period, but not the final three months of the term.

A Dragonfly statement says: “The product launches at a time when landlords are finding it increasingly difficult to finance buy-to-let projects through mainstream lenders due to the shifting regulatory landscape and enhanced stress-testing.”

Dragonfly Property Finance head of sales D’mitri Zaprzala says: “Securing a buy-to-let mortgage from a high street lender is becoming harder by the day, especially for non-standard landlords. But this is a lending gap we are more than happy to fill.”