Precise Mortgages has launched a brand new Refurb Buy to Let proposition designed to help landlords maximise rental yields by refurbishing a target property before renting it out, as well as enabling them to take value from the property to reinvest elsewhere.
The specialist lender’s exciting new product gives customers access to great bridging finance rates together with the peace of mind of knowing they have an exit onto a long-term buy to let mortgage already in place once the work has been completed.
The proposition, which is only available through mortgage intermediaries, is suitable for a wide range of landlords, including personal, limited company and HMO applicants, and offers ICR options to help with affordability. Customers must be confident they can complete any refurbishment work within the buy to let offer validity period.
It is supported by a streamlined process designed to make placing a case with the lender as easy as possible.
- One application form will produce two offers – one for the bridge and one for the buy to let
- Dedicated team of expert underwriters to provide help every step of the way
- The same valuer for both the initial valuation and the re-inspection (where possible)
- One conveyancer and discounted legal fees
- Two procuration fees – one for the bridge and one for the buy to let
- Landlords get peace of mind they have an exit already in place and the price of the buy to let loan at offer will be the price they get on completion, very useful in a rising rate environment (providing there is no change in circumstances and the property meets the expected valuation following refurbishment)
- Landlords can borrow up to 75% LTV on the bridge and 80% of the post works valuation on the exit buy to let to help optimise cash flow
Bridging rates start from 0.49% per month and customers can choose from a range of competitive products. No mortgage repayments are required whilst the refurbishment works are being completed.
Alan Cleary, Managing Director of Precise Mortgages, said: “With landlords looking at different ways of boosting their profits, this product gives them a new way of increasing rental yields and capital values. Landlords have traditionally faced difficulty in securing finance to refurbish a property before letting it out. This product enables them to do so, and it is backed up with a host of features which are designed to make applying for it as easy as possible.”
Joe Breeden, Managing Director of Crystal Specialist Finance, who were one of the firms on the pilot, added: “We completed a Refurb Buy to Let case in 17 days from start to finish. We have a very happy client, a positive outcome and a good experience. We have plenty more of these cases to send to Precise Mortgages.”