A new range of products which offers short-term finance for landlords who need to carry out refurbishments has been launched by Keystone Property Finance.
The ‘refurb to let’ range has been created to meet the high demand for finance to enable landlords to carry out ‘light’ works to their properties.
After taking out these short-term deals, landlords will be given the option of switching onto a longer-term Refurb Exit fixed rate once the refurbishment work is concluded.
The Refurb to Let loan has a maximum term of six months, a minimum loan of £100,000 and allows landlords to carry out works such as installing a new kitchen or converting a standard property into Houses in Multiple Occupation (HMO) with up to six occupants.
Keystone said it also offered streamlined underwriting for the light refurbishment part of the application to help speed up the process. It also uses title insurance to expedite the legal process and offer added protection to the buyer.
The rates on Keystone’s Refurb to Let range start at 0.85% and products are offered up to 70% LTV. Borrowers are also given the option of servicing the interest on the light refurbishment loan or rolling it up and paying it off on exit.
You can access this product via your mortgage broker.
Elise Coole, managing director of Keystone Property Finance, said: “We’re excited to enter a new area of lending with the launch of our first-ever refurb to let range. Demand for this type of finance is soaring, as more landlords look to boost yields by converting properties into small HMOs or upgrading tired stock.
“Brokers told us they needed a product for exactly this reason – so we built one. We’ve designed the range to be fast, flexible and simple – with streamlined underwriting, the choice to roll up or service interest and a clear path to longer-term finance.
“With the addition of our updated Refurb Exit Fixed Rate range, landlords can also take advantage of further borrowing when they refinance the light refurbishment loan they have with us – all while benefiting from a smooth, end-to-end journey.”
When the refurbishment works are nearing completion, brokers can apply on their clients’ behalf for a fixed rate from Keystone’s Refurb Exit Fixed Rate range, which has rates starting from 4.69%. Or they can simply redeem the Refurb to Let loan.
Borrowers who opt for a product from Keystone’s Refurb Exit Fixed Rate range are able to unlock additional borrowing if they wish and qualify for a free revaluation.
