Keystone Property Finance has launched its first ever refurb to let range, offering short-term finance for landlords carrying out light refurb works.
With rates starting at 0.85%, offered up to 70% LTV, the refurb to let loan has a maximum term of six months with a minimum loan of £100,000.
Keystone offers streamlined underwriting for the light refurbishment part of the application and uses title insurance to speed up the legal process and enhance buyer protection.
Borrowers are given the option of servicing the interest on the light refurbishment loan or rolling it up and paying it off on exit.
When the works are nearing completion, brokers can apply on their clients’ behalf for a fixed-rate from Keystone’s refurb exit fixed-rate range or redeem the refurb to let loan.
Keystone 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.
Elise Coole, managing director at Keystone Property Finance, commented: “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.”
