Precise Mortgages has launched a new refurb buy-to-let proposition to help landlords maximise rental yields by refurbishing a target property before renting it out, in addition to enabling them to take value from the property to reinvest elsewhere.
The proposition, which is only available through mortgage intermediaries, is suitable for a 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.
Precise says 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
One application form will produce two offers, one for the bridge and one for the buy-to-let and there are two procuration fees (one for the bridge and one for the buy-to-let).
The same valuer is used for both the initial valuation and the re-inspection (where possible), with one conveyancer and discounted legal fees.
Bridging rates start from 0.49% per month. 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.”