It is aimed at landlords wishing to purchase or remortgage a property that requires a level of light refurbishment before renting the property. The initial rate is 5.89% variable (SVR + 0.5%) for 2 years with a 2.5% arrangement fee. The initial advance is up to 75% of the current value, with up to 75% of the after- works value available on completion of the works.
Andy Young, Chief Executive at TBMC, says:
“There is a high level of interest from landlords in refurbishing buy-to-let properties, but there are very few products that cater specifically for this segment of the market. This product from Saffron Building Society is unique in the marketplace as it offers up to 75% of the end value, which enables landlords to recoup the money they have spent on refurbishment as soon as the work is finished.
“Carrying out minor refurbishments, such as installing a new kitchen, can make a huge difference to the attractiveness of a property and can really impact potential rental charges. This is a very useful product which brokers can use to help their landlord clients to expand their portfolios or improve their existing buy-to-let properties.”
Peter Izard, Head of Mortgages at Saffron Building Society, added:
“We are delighted to team up with TBMC to help distribute this excellent light refurbishment buy-to-let mortgage for existing landlords. Saffron is dedicated to offering a buy-to-let mortgage proposition that meets the needs of property investors and this product has been specifically designed to help those who wish to carry out improvements on rental properties. There is strong demand for this type of product and TBMC’s buy-to-let expertise will assist us in providing it to appropriate landlord applicants.”
