THESE MORTGAGES GIVES THE LANDLORD THE OPPORTUNITY FOR INCREASED EQUITY & HIGHER RENTAL INCOME
If a property needs refurbishment, it’s common sense to get the work done. Sometimes you need to make improvements before the property is suitable for tenants; sometimes you know that certain minor refurbishments may add value to your property investment, or increase the rental yield. So you need a mortgage deal that allows you to go ahead with the necessary work
With a Light Refurbishment mortgage, it may be possible to take advantage of an investment opportunity. If a property needs modernisation, you can go ahead knowing that the money spent on refurbishments could be replenished when the work is completed. Eg New kitchen /bathroom etc
There is a restricted choice of lenders who are willing to lend on this basis. Maximum lending is 75% loan to value.
Below we have highlighted a few features of each lender:-
- Available to 70% LTV of the post works value
- 65% LTV of the day one value
- Rates from 5% over 3 month Libor, 1% loading during refurb period
- Interest only for term available
Saffron Building Society
- Available to 75% LTV of the post works value
- 75% LTV of the day one value
- 5.89% – 2 Yr variable rate + 0.50% with 2 Yr ERC
- Does not need to have a kitchen and bathroom
- Available to 70% of the post works value
- 70% LTV of the day one value
- Rates from 5.45% over 3 month Libor
- Interest only for the term available
Note. All cases are subject to a full lenders underwrite and assessment.
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We can discuss your current situation and the options available to you before arranging a free no-obligation meeting.
The Financial Conduct Authority does not regulate some forms of buy-to-lets.
We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.
Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage.