Castle Trust Bank has launched a light refurbishment product with a drawdown facility.

The new product is designed to support developments delivered under Permitted Development Rights (PDR), the conversion of properties into smaller HMOs and reconfigurations as well as smaller renovations such as rewiring, new kitchens and bathrooms.

It enables borrowers to access funds in staged drawdowns, so they only pay interest on the amounts they actually draw.

Light refurbishment with drawdowns is available on projects with a maximum works cost of up to £500,000, and each drawdown must be a minimum of £25,000.

The product is available up to 75% net loan-to-value and includes the option for below market value purchases.

Castle Trust Bank commercial director Anna Lewis says: “We’ve already seen a strong demand from brokers and investors for a drawdown facility on Heavy Refurbishment projects, where clients want to manage their cashflow more efficiently and avoid paying interest on undrawn funds.”

“But the efficient use of capital doesn’t need to be contained to larger schemes and our new Light Refurbishment with Drawdowns product gives investor the flexibility to take on a wider range of projects, with the confidence that they can draw on the funding they need, when they need it.”