TAB has launched a “lifecycle” mortgage, allowing borrowers to take out an initial bridging loan to purchase property, which can later be extended to cover refurbishment costs and then converted into a longer-term loan.

The lender’s new TAB Series product is designed to take property investors through each stage of the purchase and development process and then provide long-term commercial finance.

Under the new product, TAB will lend up to £7.5m and claims that borrowers could save up to 2.75% on fees as well as lower legal expenses and valuations by dealing with a single lender through each stage of the process.

But the lender has yet to reveal the rates for each stage of its lifecycle product

TAB says it will also be moving to open market values rather than 180-day valuations for residential bridging loans up to £2.5m

Open market values are typically higher than 180-day valuations, which are based on the price a property could be expected to achieve if it had to be sold within that restricted timeframe.

TAB is also reducing residential bridging loans to 4.99% per annum over base rate, meaning a current pay rate of 10.24%.

Chief executive and founder Duncan Kreeger says: “I am happy to introduce TAB Series to the market, our latest innovation designed to meet the needs of borrowers grappling with a changing interest rate environment.

“Meticulously crafted by our team, this tailored solution addresses a significant gap in the market, promising seamless support for borrowers at every stage of their property journey.

“Prioritising their needs from acquisition to management to disposal coupled with the other changes we have announced today, empowers borrowers to capitalise on opportunities that may not have otherwise been affordable.”