Precise Mortgages is offering a refurbishment bridge-to-let product to help landlords buy properties requiring work or being purchased at auction.
The lender will provide a bridging loan to purchase properties often classed as uninhabitable and arrange the buy-to-let mortgage at the same time. This mortgage is used to repay the bridging loan, so the exit is agreed up front.
Aaron Strutt, product director at Trinity Financial, says: “Landlords can borrow up to 75% loan-to-value on a bridging loan to purchase the property, and up to 80% of the post works valuation on the buy-to-let mortgage. The interest on the bridging loan is rolled up, so there are no mortgage repayments required while the refurbishment works are completed.
“Applicants will need to provide a schedule of works, typically including a new kitchen and bathroom, and can accept structural work that does not require planning permission.”
The product gives landlords the peace of mind that they have an exit from the bridging loan and the price of the buy-to-let mortgage at offer will be the price once they complete the refurbishment. The maximum loan size is £3 million.
The same valuer will be used for the initial valuation and the re-inspection once the works are completed. One conveyancer is used and there are discounted legal fees.
This product gives landlords the peace of mind that they have an exit from the bridging loan and the assurance the price of the buy-to-let mortgage at offer will be the price they get on completion. This is providing the property meets the expected valuation following refurbishment.
Call Trinity Financial on 020 7016 0790 to secure a bridge-to-let mortgage