Shawbrook Commercial has launched an add-on to its short-term lending range, releasing a “lending for refurbishment costs” option.
In addition to borrowing 75% LTV against the lower of Day one purchase price or value, applicants may now borrow up to 100% of the refurbishment costs on a single, larger facility.
Emma Cox, sales director, Shawbrook commercial mortgages, said: “We have worked tirelessly over the past five years to improve this important element of our product offering, and 2018 represents a real success story for the Shawbrook short-term lending range.
“The ability to borrow 100% of refurbishment costs under one facility can be critical for investors looking to add value and develop their portfolios, and we are delighted to be able to support this activity.”
“While the short-term lending product range continues to evolve in response to market demand, we have managed to keep all the old benefits in place to help our brokers and their customers build for the future.
“The 0.25% discount remains available for repeat borrowers with no minimum interest periods or ERCs, and we are also pleased to retain a great deal of flexibility for borrowers with the maximum 24 month term providing time to refinance or sell.”
Initially available via a limited panel in advance of a potential wider market launch later in the year, Shawbrook said this approach is something not currently available in the market.
Loan may not exceed either 85% LTV against the lower of day one purchase price/ value, or 70% of GDV or after works value, whichever is lower, all funds are advanced to the borrower on day one.
No quantity surveyor is required, just an interim inspection at the end of month and the product is available on light refurbishment projects across residential and semi-commercial security on the existing Shawbrook short-term lending products one and two.
Priced on a loading basis with 0.10% added to the standard 75% LTV margin, a rate of 0.80%pm is available on single lets, multi-units and HMOs, with 0.91%pm available across semi-commercial security.