Commercial and buy-to-let broker Mortgages for Business has exclusively launched a mortgage specifically for investors looking to buy or refinance properties in need of refurbishment.
Loans will be based on up to 70% of the property value after refurbishment.
Rates will be set at Bank of England base rate plus 5% with a 1% loading during the refurbishment phase.
David Whittaker, managing director of Mortgages for Business, says: “Investors are suffering the burden of going through the loan process based on initial purchase price and paying all the costs associated with it.
“They then have to go through this again once the refurbishment is complete – often with a different lender who uses a different panel of valuers and conveyancers.
“This product will streamline that process and bring the total cost of financing these properties down.”