What are Buy to Let Light Refurbishment Mortgages?
It is possible to get a ‘Refurb to Let’ mortgage product 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 Fee
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.