The loans can be used for light, medium and heavy refurbishment projects, with rates starting from 0.85% per month. Terms can be taken from three to 24 months.
For residential property, London Credit will lend up to 75% loan to value (LTV) from day one for light and medium refurbishment projects. For heavy refurbishment projects, LTVs are restricted to 70%. Loan to gross development value (LTGDV) is available up to 70%.
For semi-commercial property, lending is available up to 70% LTV from day one for light and medium refurbishment. Heavy refurbishment projects are restricted to 65% LTV. Borrowers looking for commercial property refurbishment loans can access loans up to 65% LTV with LTGDV available up to 60%, depending on the project.
The lender will also provide up to 90% loan to cost for eligible refurbishment projects. Drawdown facilities, rolled-up, retained or serviced interest options are available.
Earlier this month, the lender launched commercial bridging with serviced interest.
Constantinos Savvides, head of underwriting at London Credit, said: “Refurbishment finance remains one of the most active parts of the short-term lending market, as investors continue to improve existing property stock and reposition assets to meet demand.”
Selina simplifies criteria
Second charge lender Selina Finance, meanwhile, has launched a five-year fixed product with no early repayment charges (ERCs) above 85% LTV, alongside a series of criteria updates designed to widen borrower eligibility.
The lender has removed its debt to income calculation to simplify affordability assessments and help brokers place more cases. It has also improved the eligibility for automated valuations.
The maximum borrower age has been upped to 80 years old, while earned income is now considered up to age 75.
Among other criteria changes, minimum loan restrictions have been reduced from £10,000 to £5,000, the minimum self-employed age has been reduced to 21 and maximum loan amounts have been increased to £300,000 for products between 75% and 85% LTV.
Matthew Batte, head of intermediaries at Selina Finance, said: “A big focus for us has been simplifying how cases move through the process. Removing our DTI calculation and introducing a five-year fixed product with no ERCs on higher-LTV lending gives brokers more room to structure solutions that work for their clients, while still providing the certainty many borrowers are looking for.
“At the same time, expanding our Hometrack eligibility and increasing the availability of no-valuation products is another step towards making the journey faster and more predictable. Where cases meet the criteria, instant valuations remove delays and give brokers greater clarity much earlier in the application process.”
