95% Refurb Product Available:

We have a lender who is offering a very unique refurb product... you can borrow a gross loan of up to 95% of the purchase price on day ONE!

How does this work? The 95% consists of 75% towards the purchase of the property and 20% which is prepaid towards the refurb costs totalling 95% on day one.

The borrower needs to demonstrate that they have the funds for the refurb.

Once the property is complete, the lender will also offer an option to do a further advance to take the total borrowings to 75% of the GDV giving the borrower additional funds once the property has been completed.

This Products Parameters:

Loan Size: £50k - £1m

Term: 3 months - 24 months

Arrangement Fee: 2%

Exit Fee: 0%

Location: England, Wales & Parts of Scotland

Security Type: Residential and Semi-Commercial

Interest Rate: From 1.06% per month

Borrower: Adverse Credit Considered

Valuation Type: Short form valuations on deals below £150k, full valuations for deals over £150k with re-addresses considered

There are also NO monitoring surveyors for the refurb works

Case Study on this Product:

Our client is buying a property for £145k, spending £30k on the refurb with a GDV of £230k.

The lender will provide a gross loan on completion for the purchase of £137,750 (95%) which after deducting fees and 12 months interest gives a net day one loan of £117,270 (80.88%).

When the works are done the lender will increase the gross loan to 75% of the GDV - £172,500, giving the borrower more funds back for their next project.

Terms can be up to two years but if you’re confident you can refurb in six months your day one net advance will be higher (as you're only deducting six months interest rather than twelve above) and you have the comfort of the further advance when complete.