Shawbrook has brought back borrowing of up to 85 per cent loan to value on residential Buy-to-Let properties when lending for refurbishment costs.

The challenger bank offers this loan through the reintroduction of its unregulated bridging Lending for Refurbishment Costs product.

The product was temporarily withdrawn last year following the impact of the pandemic, which saw the housing market grind to a halt last spring.

However, the lender says “as demand and confidence in the bridging market continues to grow, Shawbrook has returned the offering”.

The number of house purchase approvals made in 2020 came to 818,500 in 2020, according to data from the Bank of England released this week, a 13-year high.

This number is the highest in a single year since 2007 and comes off a record low of 9,400 approvals recorded in May 2020.

Shawbrook’s move follows a series of measures the lender made in reaction to an improving market, including streamlined LTV bands and reduced pricing.

Shawbrook head of sales for its property finance division Gavin Seaholme says: “Lending for Refurb Costs is a key part of our product offering and one that is well received by our broker community, so we’re really excited to bring it back.

“Demand in the bridging market remains strong, so it’s important that we adapt to support brokers and help them take advantage of the opportunities that are out there.

“We’re looking forward to supporting the market throughout 2021, with even more positive changes to follow in the coming months.”