Keystone Property Finance has introduced its first refurb to let range in response to increased demand for refurbishment loans among brokers and landlords.
The product provides short-term finance of up to six months for landlords making light improvements before letting them switch to a longer-term fixed rate once the works are completed.
Minimum loan size is £100,000 and works can include new kitchens or converting a standard house into a house in multiple occupation (HMO) for up to six people.
Keystone uses streamlined underwriting and title insurance to speed up funding and legal checks.
The rates on Keystone’s refurb to let range start at 0.85% with up to 70% loan-to-value (LTV).
Landlords can choose to pay interest monthly or roll it up and pay at the end.
When the renovation is nearly finished, brokers can apply for a fixed rate from Keystone’s exit range starting at 4.69%, or repay the short-term loan.
Borrowers moving onto a fixed rate after works can access further borrowing and a free revaluation.
Keystone pays a 1% procuration fee on the initial loan and a further 0.55% if clients switch to its exit product.
Elise Coole, managing director at Keystone Property Finance, said: “We’re excited to enter a new area of lending with the launch of our first-ever refurb to let range.
“Demand for this type of finance is soaring, as more landlords look to boost yields by converting properties into small HMOs or upgrading tired stock.
“Brokers told us they needed a product for exactly this reason – so we built one.”
Coole added: “We’ve designed the range to be fast, flexible and simple – with streamlined underwriting, the choice to roll up or service interest and a clear path to longer-term finance.
“With the addition of our updated Refurb Exit Fixed Rate range, landlords can also take advantage of further borrowing when they refinance the light refurbishment loan they have with us – all while benefiting from a smooth, end-to-end journey.
“Keystone now offers the full product lifecycle, from purchase and renovation through to competitive fixed rates and our innovative product transfer offering.”
She said: “We believe this gives us a unique proposition in the market and gives brokers and their clients another reason to give us a call.”
