Shawbrook Bank has released an option in its short-term lending range for lending for refurbishment costs.
In addition to borrowing 75% LTV against the lower of Day 1 purchase price or value, applicants may now borrow up to 100% of the refurbishment costs on a single, larger facility.
Initially available via a limited panel in advance of a potential wider market launch later in the year, features include the following:
- Loan may not exceed either 85% LTV against the lower of day one purchase price/ value, OR 70% of GDV or after works value (whichever is lower)
- All funds are advanced to the borrower on day one
- No Quantity Surveyor required, just an interim inspection at the end of month three
- Available on light refurbishment projects across residential and semi-commercial security on the existing Shawbrook STL1 and STL2 products
Priced on a loading basis with 0.10% added to the standard 75% LTV margin, a rate of 0.80% pm is available on single lets, multi-units and HMOs, with 0.91% pm available across semi-commercial security.
Emma Cox, sales director at Shawbrook Commercial Mortgages, said: “We have worked tirelessly over the past five years to improve this important element of our product offering, and 2018 represents a real success story for the Shawbrook STL range.
“The ability to borrow 100% of refurbishment costs under one facility can be critical for investors looking to add value and develop their portfolios, and we are delighted to be able to support this activity.
“While the STL product range continues to evolve in response to market demand, we have managed to keep all the old benefits in place to help our brokers and their customers build for the future.
“The 0.25% discount remains available for repeat borrowers with no minimum interest periods or ERCs, and we are also pleased to retain a great deal of flexibility for borrowers with the maximum 24 month term providing time to refinance or sell.”