TAB has introduced a new type of bridging loan in light of the Bank of England’s (BoE) interest rate rise last week.

The TAB Tracker will sit alongside its traditional, fixed-rate, short-term loans.

The product, which links to the BoE’s base rate, plus a margin, will start from 6.80% over base – working out at rates from 7.80% pa or 0.65% pcm. 

The product has been developed for borrowers who are planning a quick sale, want to take advantage of a cheaper interest rate, or don’t expect rates to rise during their term. 

TAB chief executive and founder Duncan Kreeger says: “We’re introducing the TAB Tracker, which will be cheaper than traditional fixed-rate loans. This new product allows us to sharpen our pricing and keep rates as low as possible while other lenders may speculatively and arbitrarily raise fixed rates to protect themselves against base rate rises.”

Kreeger confirmed that TAB’s existing 12-month fixed-rate bridging loans will still be available.

“There’s no pressure on borrowers to choose the TAB Tracker. If they’re looking for security, they might be better off with the old-school fixed-rate product,” he adds.