Exclusive Light Refurbishment Product 01.02.2010

Author: Steve Olejnik Posted on: 01 February 2010

MFB is pleased to announce a new and exclusive mortgage product for experienced property investors looking to purchase or refinance Residential Investment properties in need of some work.

 

Many Buy to Let property investors have been struggling to find finance for properties in need of refurbishment. The majority of lenders will only release mortgage funds once a property is let and the few lenders that will take a view, do not cater for the larger projects or the more complex properties (HMO, Multi-unit Freeholds).

 

Some investors go down the Bridging Finance route although again struggle for options if the property is not a traditional house or flat. Short term lenders are often reluctant to lend if there is not a guaranteed option for longer term funding – especially if it is the intention to keep the property as an investment. Bridging lenders are also reluctant to lend to Limited Companies. Typical Bridging Finance costs are c1.5% per month, with entry and exit fees of 1.5% to 2% on average.

 

Some are forced to purchase and refurbish the property from savings or private funding and are told that they have to wait 6m before raising a mortgage.

 

Over the past few months, MFB has been working on putting together a mortgage product which addresses the above issues. Details of this new product, available exclusively through Mortgages for Business, are as follows:

• Initial loan up to 65% of purchase price or value (whichever is the lower)
• Further funds retained and released post refurbishment up to 70% of end value
• Interest Rate 5% above Base Rate with a 1% loading during the refurbishment phase
• Lender Fee 2.5%
• A Broker Fee will apply (typically 0.5%)
• Available for Residential, Semi-Commercial and Commercial property

For further details, speak to your Consultant or call Mortgages for Business on 0845 3456788