Marsden Building Society has launched a short-term mortgage on a trial basis that it is billing as an alternative to a bridging loan.
The lender says that it is responding to intermediaries who have clients between properties and require a mortgage to support their move.
The product features a maximum two-year term and is available on interest-only basis on up to 60 per cent LTV. It has a variable rate of 5.24 per cent and commands a £299 booking fee and an arrangement fee of £1,200.
Additionally, there is no early repayment charge, allowing clients to exit the mortgage any time during the two-year term.
In the event of the sale failing, the client will continue to make monthly payments and can wait until the next sale to complete on the mortgage.
Brokers will earn a procuration fee of 0.40 per cent.
Marsden head of lending Steve Robinson (pictured) says: “We were finding many intermediaries looking for options for their clients who are in the process of buying and potentially need a short-term mortgage.
“This is a new initiative… and [we] welcome feedback from brokers and their clients.”