The refurb to let range will offer short-term finance to landlords who are carrying out light refurbishment works, before giving them the option to switch to a longer-term refurb exit fixed rate once the work is complete.
The refurb to let loan has a maximum term of six months and a minimum loan size of £100,000. It enables landlords to carry out work such as installing a new kitchen or converting a standard property into a house in multiple occupation (HMO) with up to six occupants.
Keystone Property Finance will provide streamlined underwriting for the light refurbishment part of the application and use title insurance to speed up the legal process.
Rates start from 0.85% and products are available up to 70% loan to value (LTV). Borrowers can also service the interest on the light refurbishment loan, or roll it up and pay on exit.
When the works are almost complete, brokers can apply for a fixed rate on their client’s behalf from the lender’s refurb exit range, where rates start from 4.69%, or they can redeem the refurb to let loan.
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Borrowers who choose a product from the refurb exit range can borrow more and will qualify for a free valuation.
Keystone Property Finance pays a proc fee of 1% on the refurb to let product and an additional 0.55% if the client chooses a refurb exit deal.
Elise Coole, managing director of Keystone Property Finance, said: “We’re excited to enter a new area of lending with the launch of our first-ever refurb to let range. Demand for this type of finance is soaring, as more landlords look to boost yields by converting properties into small HMOs or upgrading tired stock. Brokers told us they needed a product for exactly this reason – so we built one. We’ve designed the range to be fast, flexible and simple – with streamlined underwriting, the choice to roll up or service interest and a clear path to longer-term finance.
“With the addition of our updated Refurb Exit Fixed Rate range, landlords can also take advantage of further borrowing when they refinance the light refurbishment loan they have with us – all while benefitting from a smooth end-to-end journey.
“Keystone now offers the full product lifecycle, from purchase and renovation through to competitive fixed rates and our innovative product transfer offering. We believe this gives us a unique proposition in the market and gives brokers and their clients another reason to give us a call.”
Earlier this month, the lender reduced rates on most of its products.
