Landlords looking for a refurbishment mortgage should check out the new buy-to-let product being offered by Mortgages For Business (MFB).This buy-to-let mortgages is suitable for experienced investors looking to purchase or refinance a residential investment property that needs a bit of upgrading.
The criteria are:
• Initial loan up to 65% of purchase price or value (whichever is the lower)
• Further funds retained and released post refurbishment up to 70% of end value
• Interest Rate 5% above Base Rate with a 1% loading during the refurbishment phase
• Lender Fee 2.5%
• A Broker Fee will apply (typically 0.5%)
The alternative to a mortgage is for a landlord to use bridging finance although this can be expensive by the time the initial set up fee and high levels of interest are taken into account. If you are looking for more information on development finance have a look at this recent Property Hawk article.
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