Refurb to Let
February 22nd, 2016
Did you know that here at Turney & Associates Ltd that we can arrange ‘Refurb to Let’ mortgage for you?
What are ‘Refurb to Let’ Buy to Let Light Refurbishment Mortgages?
Otherwise known as ‘Buy to Let Light Refurbishment Mortgages’, there is a ‘Refurb to Let’ mortgage product on the mortgage market with no monthly payment but provides a fixed rate rolled up to redemption.
Available as a 1st or 2nd charge loan (meaning no need to disturb the existing loan).
Summary of lending criteria:
- For light refurbishment properties not requiring planning permission or building regulations
- For light refurbishment properties not requiring change of use or purpose of the property concerned
- No DIY projects (unless, by exception, lending to a professional tradesperson)
- All works musts be completed within 6 months
- Revaluation of the property after 6 months will be arranged, to assess market value post-works
- No minimum income requirement but applicant must demonstrate ability to service primary loan during refurbishment stage
- Product details (information accurate at time of publishing):
- No monthly payments
- No maximum applicant age limit
- No additional stress test on rental income
- Fixed rates from 6.59% per annum (this equates to 0.6% per month)
- Loan term: 12 months
- No Early Repayment Charges
- 1st charge – borrow up to 70% of the property value
- 2nd charge (combined including any 1st charge mortgage) – varies up to 79% LTV (including any rolled up interest) determined on a case by case basis
- Limited company applications accepted
- 2% Arrangement Fee
- 2% Redemption FeeIf you wish to discuss your mortgage requirements with us, please do not hesitate to contact us.
- Loans are subject to status, Terms and Conditions. The Applicant’s property may be repossessed if they do not keep up repayments on a mortgage or any other debt secured on it.