Colin Bell, CEO of InterBay Commercial, said: “It was clear in our conversations with key partners that there is demand for a term refurb mortgage product that allows a refurb period to allow the borrower to enhance the value and earnings potential of real estate with a view to holding.
“Whilst there is plenty of supply of bridging finance in the market some borrowers are looking for a long term product with a period during which the property will be vacant to allow them to undertake refurb. Having in house surveyors who complement the external valuations that we always undertake allows us to expertly assess and underwrite such mortgages.”
James Hardwick, director of Charleston FS, said: “This is a great refurb to term product based around experienced investor requirements. This will provide a long term solution where other market products restrict to shorter terms thereby tying the clients hands and incurring additional costs.”
And Lucy Hodge, director of Vantage Finance, added: “Another great product offering from InterBay and a product I am sure will generate a lot of interest”
Bell said: “This sector of the market is one that is growing in demand and with term facility given up front this gives borrowers the confidence that they have a long term mortgage. Also being able to roll up the interest for up to six months will also allow them to focus their funds on the refurb to ensure it is undertaken professionally.”
Product details
• Maximum LTV during Refurb Period 75%
• Light & Medium Refurb Options
• Rates from 0.65% per month during refurb
• Interest can be rolled up for 6 months if required
• Reverts to Standard Buy to Let Product up to 85% after works completed
• Fees only charged on extra drawdown when reverting to standard buy to let product
• Refurb term up to 12 Months
• Max Term 30 years
