Castle Trust Bank has relaunched its Heavy Refurbishment with Drawdowns bridging product, responding to growing demand from property investors for more flexible and cost-effective refurbishment funding.
The product allows borrowers to draw funds in stages throughout a project rather than receiving the full loan amount on day one, meaning interest is only charged on funds actually drawn. The structure is designed to reduce overall borrowing costs and improve cashflow management during refurbishment.
Targeted at larger schemes where planning permission is required, the heavy refurbishment bridging finance product covers house-to-flat and flat-to-house conversions alongside other substantial refurbishment projects. It is available up to 75% net LTV and 70% LTGDV, with loan sizes from £250,000 to £5m and terms of up to 18 months.
Works funding is accessible through staged drawdowns, with a minimum drawdown amount of £25,000 and works costs of up to £750,000 funded in arrears.
Pricing starts from 1.02% per month, with a 2.00% arrangement fee.
"We've seen growing demand from brokers and property investors for funding solutions that provide greater flexibility and help improve the overall economics of refurbishment projects," said Anna Lewis, commercial director at Castle Trust Bank (pictured).
"As investors become increasingly focused on managing costs and protecting margins, staged drawdowns offer a practical way to reduce unnecessary interest costs by ensuring borrowers only pay for the funds they have actually used.
"Our Heavy Refurbishment with Drawdowns product gives investors greater control over their cashflow and enables funding to be aligned with the pace of works on site."
