Octopus Property cuts refurbishment loan rates

The Octopus Property Refurbishment Loan offers one product for all types of refurbishment requirements, which could include a house conversion into flats, conversion of a commercial asset into residential or a full internal rework of a property.

There are two options available, both with terms of one to 23 months. The first carries an arrangement fee of 2% and a monthly interest rate of 0.8%, down from 1.15%. This option does not have an exit fee.

The second option also has an arrangement fee of 2% and offers an annual interest rate of 7%, down from 11%. In addition, there is an exit fee of 2% on this option.

Octopus Property will lend up to 70% of the final GDV of a scheme and will always lend 100% of the cost of works.

Mario Berti (pictured), CEO, Octopus Property, said: “Demand for property improvement finance continues to grow. In reducing our rates for Refurbishment Loans, we will provide developers and property professionals with a competitive product which meets their need for a fast and flexible lending solution.”

He added: “This is the second major change we’ve made this year as part of our product overhaul. Throughout 2017 we will be making changes to our loan range, including buy-to-let and commercial, in order to deliver an even more compelling proposition for our clients.

Last month the lender cut its residential bridging loan rates.