SDKA has reduced the rate on its BRIDGE 75 Semi-Commercial product by 60bps to 0.95% pcm for loans above £250,000 up to 75% loan to value.
The lender said the change applies to loans with terms of up to 24 months and a maximum loan size of £2.5m.
SDKA said the reduction follows an increase in enquiries and applications linked to the pricing of semi-commercial properties and demand from borrowers looking to create or expand multiple income streams.
It also pointed to discussions with developers and brokers using semi-commercial assets for residential conversion, with some seeking to benefit from non-residential Stamp Duty Land Tax rates.
The lender said that, under current SDLT thresholds, a residential property bought for £200,000 would incur an £11,500 payment, compared with £1,000 for a semi-commercial building.
At £500,000, it said the equivalent figures would be £40,000 and £14,500 respectively.
Kunal Mehta (pictured), managing director of SDKA, said: “We have offered commercial and semi-commercial bridging since our inception 10 years ago, they are very much the bedrock of our business with increasing deal numbers every year.
“Last year we boosted the BRIDGE 75 Semi-Commercial LTV to 75% in response to market conditions, and we have reacted again by reducing the rate to 0.95% pcm to further enhance our competitive offering against a backdrop of reducing semi-commercial property prices around the UK.”
