Precise Mortgages has brought to market a refurbishment bridging loan which converts to a standard buy-to-let once the property has been renovated.
We understand that the product is being piloted through a limited number of brokers before being rolled-out to the wider market.
The buy-to-let mortgage offer will be valid for six months and underwriters will be available to help brokers throughout the process.
Interest can be rolled-up before the buy to let is generating rental income and during the short-term lending.
Bridging finance is available at up to 75% loan to value (LTV) with rates from 0.49%, minimum loans of £50,000 and no maximum and a 1.2% facility fee.
The buy-to-let products mirror selected two- and five-year fixed rate products from the lender’s current range, available up to 80% LTV with rates from 2.89%. The minimum loan is £55,000 with a maximum of £3m or £1m for houses in multiple occupation (HMO).
Products are available for HMO, limited company HMO, personal ownership and limited company.
Precise said that this was an ideal solution for property investors who were looking to improve the property before renting it out.
It also suggested the loan would be suitable for short-term internal refurbishment, like a renovation to meet an EPC rating and that it may help to increase the rental yield.
The products are currently available through limited distribution with 3mc; The BTL Club; Positive Lending; TBMC; Mortgages for Business; and Connect IFA.
It added that the lender will look to widen out the distribution panel in due course.