Octopus Property cuts refurbishment loan rates

by: Edward Murray
  • 06/03/2017
  • 0
Octopus Property cuts refurbishment loan rates
Short and medium-term lender Octopus Property has reduced the rates charged on its Refurbishment Loan product.

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.

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