This product will lend up to 95% of the cost of the property being improved and will then release up to a further 95% of the costs of the improvements in phases at the start of each stage of the refurbishment. Overall borrowing is capped at 85% of the enhanced value of the completed renovation.
These amounts are released prior to each stage being started, meaning the borrower has positive cashflow during the improvements. They can use the released funds to benefit from offsetting and reduce the total amount of interest payable on their mortgage whilst they carry out the next stage of the renovation.
To give people a picture of the various stages of home renovation, Intelligent Finance are also sponsoring the "Renovation Zone" , which shows how a "wreck" can be turned into a dream home, at the newly-opened National Self Build and Renovation Centre in Swindon
Brian Ewing, head of intermediary sales at Intelligent Finance, said: "We are delighted to have teamed up with such an innovator in the renovation and self build market as BuildStore. With more and more homeowners looking to refurbish or extend their properties, we are keen to offer them a competitive offset deal which offers both long-term value and flexibility."
Stewart Cooper, managing director of financial services at BuildStore, commented: "Bringing a house back to life is a dream for many people but while they can afford the mortgage, getting the money at the right time for the work can be a problem. BuildLoan Refurbishment Finance solves this and Intelligent Finance is an ideal partner for us in this development as offsetting allows customers to reduce the total amount of interest payable on their mortgage while still giving them access to the money when they need it."
Details of the BuildLoan Intelligent Finance product:
Offset term tracker – Bank base + 0.54% for life of loan, currently 5.79%
Loan-to-value (LTV) – 85%
Early Repayment Charges – 3% of the total drawdown for the first three years
