New product line launched in response to growing landlord demand
Specialist buy-to-let lender Keystone Property Finance has introduced a new refurb-to-let product line, targeting landlords seeking finance for property upgrades prior to securing longer-term mortgages.
The offering marks the lender’s first move into short-term refurbishment finance, designed for landlords undertaking light improvement work such as kitchen replacements or converting properties into houses in multiple occupation (HMOs) for up to six tenants.
The new product provides an initial short-term loan of up to six months, with a minimum amount of £100,000. Once renovation work is nearly finished, borrowers can either repay the original loan or switch to a fixed-rate product from Keystone’s Refurb Exit range.
The lender said it has simplified the underwriting process for the initial phase to ensure quicker access to funding. Title insurance is also used to speed up legal checks and provide additional safeguards for borrowers.
Interest rates for the refurb-to-let products start from 0.85% and are available up to 70% loan-to-value (LTV). Customers may choose to either pay the interest monthly or roll it up and settle it when repaying the loan. The follow-on Refurb Exit Fixed Rate products begin at 4.69%. Landlords switching to this option may access further funding and benefit from a free property revaluation.
Brokers are offered a 1% procuration fee for placing a client on the refurb-to-let product, and an additional 0.55% if their client transitions to a Refurb Exit Fixed Rate product.
“We’re excited to enter a new area of lending with the launch of our first-ever refurb-to-let range,” said Elise Coole (pictured), managing director at Keystone Property Finance. “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.”
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