The product is aimed at landlords who want to upgrade an untenanted property. It can be offered with an initial term of 12 months and has no early repayment charges. Landlords can roll up interest payments onto the loan balance so they don’t need to make monthly payments.
The LTV is based on the day-one valuation so it will not take into account the future value of any works done to the property. The value of rolled-up interest is included in the maximum LTV of 80%.
Matthew Wyles, group retail director, said: “The Chancellor’s recent Budget shock on the deductibility of buy-to-let mortgage interest only serves to emphasise the importance of maximising the rental value of buy-to-let property. Our product allows the landlord to hold vacant property with crucially no need to service interest for up to a year whilst upgrading.”
Castle Trust will allow landlords to use the loan to carry out internal and external work provided no planning consent is required.
Refurb-to-let is only available through packagers and intermediaries which hold full and current panel accreditation from Castle Trust.
