A property investor has achieved net equity growth of nearly £40,000 in just two months using Precise Mortgages’ groundbreaking new Refurbishment Buy to Let proposition.
Both elements of the case were packaged by 3mc. After the Decision in Principle (DIP) was received, Precise Mortgages completed on the bridging finance element of the case in just nine working days which enabled the customer to purchase the property at auction. Once refurbishment work had been carried out, the property was revalued at more than £300,000. The time taken from initial DIP to completion of the buy to let loan was just eight weeks, including the Christmas and New Year period.
Refurbishment Buy to Let offers customers the best of both worlds when financing a refurbishment project – quick access to flexible short-term finance which enables a property to be purchased at auction and refurbished before the peace of mind and security of an exit onto a long-term mortgage once the work has been completed. Landlords can borrow up to 75% LTV on the bridge and 80% of the post-works valuation on the buy to let mortgage.
Brokers benefit from a streamlined application process which includes a range of great features, including one application form which produces two offers and two procuration fees (one for the bridge and one for the buy to let). They also receive support from a dedicated team of expert underwriters who provide help every step of the way. Bridging rates start from just 0.49% and no mortgage repayments are required whilst the refurbishment works are being completed.
With landlords looking for different ways of boosting their profits and increasing rental yields and capital values, it is suitable for a range of landlord types, including personal ownership, limited company and HMO applicants. Interest Coverage Ratio options are available to ensure brokers can tailor affordability assessments to customers’ personal circumstances.
Alan Cleary, Managing Director at Precise Mortgages, said: “Landlords have traditionally faced difficulty in securing finance to refurbish a property before letting it out: this product enables them to do so. It allows them to purchase an under value property without having to be a cash buyer and to use the equity growth to invest in future projects should they wish to do so.”
Doug Hall, Managing Director at 3mc, added: “This was great service from Precise Mortgages, assisting 3mc to complete both parts of their new Refurbishment Buy to Let range.
“You don’t often see products coming together in the specialist lending market, so I love the fact that Precise Mortgages has been bold enough to bring Bridging Finance and Buy to Let Mortgages together.”