The lender's new range provides short-term finance for landlords carrying out light refurb works before giving them the option of switching onto a longer-term Refurb Exit fixed rate once the refurbishment work is concluded.
The loan has a maximum term of 6 months, with a minimum loan of £100k and allows landlords to carry out works such as installing a new kitchen or converting a standard property into an HMO with up to 6 occupants. Rates start at 0.85% and products are offered up to 70% LTV. Borrowers are also given the option of servicing the interest on the light refurbishment loan or rolling it up and paying it off on exit.
When the refurbishment works are nearing completion, brokers can apply on their clients’ behalf for a fixed rate from Keystone’s Refurb Exit Fixed Rate range, which has rates starting from 4.69%, or simply redeem the Refurb to Let loan.
Elise Coole, managing director of Keystone Property Finance, comments:
“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 benefiting from a smooth, end-to-end journey."
