"With landlords looking at different ways of boosting their profits, this product gives them a new way of increasing rental yields and capital values."
Precise Mortgages has launched a refurb buy-to-let offering which allows borrowers to refurbish a property before renting it out, as well as enabling them to take value from the property to reinvest elsewhere.
The proposition includes a bridging product with rates from 0.49% per month, followed by an exit onto a long term buy-to-let mortgage, which does not need to be repayed while refurbishment works are being completed.
The proposition is only available through mortgage intermediaries and Precise will offer two procuration fees – one for the bridge and one for the buy-to-let.
The product is suitable for individuals as well as limited company and HMO applicants with ICR options to help with affordability.
Landlords can borrow up to 75% LTV on the bridge and 80% of the post-works valuation on the exit buy-to-let.
Alan Cleary, managing director of Precise Mortgages, said: “With landlords looking at different ways of boosting their profits, this product gives them a new way of increasing rental yields and capital values. Landlords have traditionally faced difficulty in securing finance to refurbish a property before letting it out. This product enables them to do so, and it is backed up with a host of features which are designed to make applying for it as easy as possible.”
Joe Breeden, manging director of Crystal Specialist Finance, who were one of the firms on the pilot, added: “We completed a refurb buy-to-let case in 17 days from start to finish. We have a very happy client, a positive outcome and a good experience. We have plenty more of these cases to send to Precise Mortgages.”