Keystone Property Finance has launched a refurb to let range which provides short-term finance for landlords carrying out light refurb works before allowing investors to switch to a long-term loan.
Investors can then switch onto a longer-term refurb exit fixed rate after refurbishment work is concluded, which could include installing a new kitchen or converting a standard property into an HMO with up to six occupants.
Elise Coole, managing director of Keystone Property Finance, said: “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. 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.”
The product allows a minimum loan of £100,000, with products starting at 0.85% per month to 70% loan-to-value.
Borrowers are also given the option of servicing the interest on the light refurbishment loan or rolling it up and paying it off on exit.
When the refurbishment works are nearing completion, brokers can apply on their clients’ behalf for a fixed rate from Keystone’s refurb exit fixed rate range, which has rates starting from 4.69% annually, or simply 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.
Coole added: “Keystone now offers the full product lifecycle, from purchase and renovation through to competitive fixed rates and our innovative product transfer offering.
“We believe this gives us a unique proposition in the market and gives brokers and their clients another reason to give us a call.”
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