Keystone Property Finance has launched its first refurb to let range.
The range provides short-term finance for landlords carrying out light refurb work before giving them the option of switching onto a longer-term refurb exit fixed rate once the refurbishment work is complete.
The refurb to let loan has a maximum term of six months, with a minimum loan of £100k and allows landlords to carry out works such as installing a new kitchen or converting a standard property into a house of multiple occupancy with up to six occupants.
Keystone is offering streamlined underwriting for the light refurbishment part of application and will use title insurance as well as offering added protection to the buyer.
The new range will start at 0.85% and products are offered up to 70% loan-to-value (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.
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 redeem the refurb to let loan.
The lender pays a 1% procuration fee for the refurb to let product and an additional 0.55% to brokers whose clients go on to select a product from its refurb exit fixed rate.
Keystone Property Finance managing director Elise Coole says: “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.”
