The product aims to support developments under permitted development rights (PDR), the conversion of properties into smaller houses in multiple occupation (HMOs) and smaller renovations like rewiring and new kitchens and bathrooms.
The deal allows borrowers to access funds in staged drawdowns, so borrowers can pay interest on the amount they actually draw. This helps cut the overall cost of borrowing.
Light refurbishment with drawdowns is available on projects with a maximum works cost of £500,000, and each drawdown must be a minimum of £25,000.
The product is available up to 75% net loan to value (LTV) and includes the option for below market value (BMV) purchases.
Anna Lewis (pictured), commercial director at Castle Trust Bank, said: “We’ve already seen a strong demand from brokers and investors for a drawdown facility on heavy refurbishment projects, where clients want to manage their cashflow more efficiently and avoid paying interest on undrawn funds.
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“But the efficient use of capital doesn’t need to be contained to larger schemes and our new light refurbishment with drawdowns product gives investor[s] the flexibility to take on a wider range of projects, with the confidence that they can draw on the funding they need, when they need it.
“It’s another example of how we’re building a bridging proposition that not only adapts to investor needs but actively empowers them to move quickly, stay in control of their funding, and maximise returns in a competitive market.”
Castle Trust Bank said the launch built on its heavy refurbishment with drawdowns deal in 2023.
Earlier this year, the firm brought out a bridging underwriting team to offer a “more streamlined approach to bridging finance applications”.
