LendInvest launches new Refurbishment Finance product
LendInvest, the UK’s leading online mortgage lender, has launched a new refurbishment finance product targeted at experienced property professionals.
The refurbishment product has been specially designed to help property investors renovate or refit existing properties. Unlike a standard bridging loan, LendInvest refurbishment loans are lent against a borrower’s gross development value (GDV) and funds are released at stages throughout the refurbishment works. Interest is rolled up and paid at the end of the term.
Key features of the refurbishment finance product:
The loan is based on GDV, not LTV, and has more than one drawdown
Interest is charged at 0.92% – 1.1% per calendar month and payable at the end of the term
Available on loans between £100,000 and £2 million
Available on terms up to 18 months
A maximum loan-to-value of 70% applies
Steve Larkin, Director of Development Finance at LendInvest, said:
“At LendInvest, our deep experience of lending both bridging and development finance puts us in an desirable position that allows us to develop tailored products like our new refurbishment loans. These will appeal to the type of property professional for whom an LTV-based bridging loan is not flexible enough, yet who doesn’t need a full development loan for their relatively straightforward refurbishment project. Basing our refurbishment loans on GDV not LTV means more leverage for the developer and less capital needed upfront.
“It’s this flexibility that is crucial to borrowers, and for which LendInvest loans are increasingly becoming known among borrowers and their intermediaries.”
Refurbishment finance is Lendinvest’s first product to be launched in the new year, following the successful rollout of development exit loans in October and auction finance in December 2016.