Precise reintroduces refurbishment mortgages

The product involves bridging loan before exiting on to a buy-to-let mortgage, which does not need to be repaid while the refurbishment works are being completed.

Precise said it is designed to help landlords maximise rental yields by refurbishing a property before renting it out, as well as allowing them to take value from the property to reinvest elsewhere.

Landlords can borrow up to 65 per cent LTV on the bridge and 75 per cent of the post-works valuation on the exit buy-to-let mortgage.

The lender added that one application form will produce two offers, one for the bridge and one for the buy to let, as well as two procuration fees.

OneSavings Bank group sales director Adrian Moloney said the relaunch demonstrated its commitment to supporting the market.

“Landlords have traditionally faced difficulty in securing finance to refurbish a property before letting it out,” he said.

“Refurbishment Buy to Let enables them to do so by bringing together the flexibility of bridging finance together with the surety of an exit onto a long-term buy to let once the improvement work has been completed, provided the property meets the expected valuation following refurbishment.”