Shawbrook completes short-term loan covering 100% of refurb costs at 85% LTV

  • 20/09/2018
  • 0
Shawbrook completes short-term loan covering 100% of refurb costs at 85% LTV
Shawbrook has helped a developer secure 100% of their refurbish costs with an 85% Loan to Value (LTV) short term finance loan on an auction purchase.

Strategic Partner B2B Financial approached Shawbrook for the loan of £207,750 against a property value of £300,000.

Around £27,700 in costs were covered under the facility, delivering a material benefit to the customer in terms of cash flow.

This was completed on the short-term lending (STL1) residential light refurbishment product on a 12 month term with serviced interest.

This application journey was completed in 16 days from start to finish.

The customer is now looking for a longer term solution once the works are complete.

Shawbrook said it is an example of its ‘bridge to let’ offering, and serves to highlight the importance of lender, broker and solicitor working closely together across the customer journey.

The customer plans to exit by switching to a Shawbrook term loan once the project is complete – meaning no additional fee and the ability to borrow against the new GDV to 75% LTV.

This creates further cash flow benefits and opens up more investment opportunities as a result, Shawbrook said.

Adrian Rawle from B2B Financial said that it is encouraging to see this kind of product hit the market at a time where the BTL landscape faces some real challenges.

He added: “The lending for costs option really fills a need in the market and the 16 day completion timeline was quite superb. Our client is delighted with the outcome and we are grateful to Shawbrook for making this an incredibly slick process with excellent service all round.”

Gavin Seaholme, head of sales for Shawbrook Commercial Mortgages (pictured), said that the product already has generated significant traction.

He added: “With research just in from our 2018 buy-to-let report that indicates a slightly dampened market, forward thinking products like this allows the professional investor and landlord community to continue to build and grow, and we are delighted to be able to facilitate this.”

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