The product targets landlords looking to maximise their rental yields by refurbishing a property before renting it out, as well as enabling them to take value from the property to reinvest elsewhere.
The specialist lender’s new product will give customers access to bridging finance rates while knowing that they have an exit on to a long-term BTL mortgage already in place once the work has been completed.
The proposition is only available through mortgage intermediaries and is suitable for personal, limited company and HMO applicants.
However, customers must be confident that they can complete any refurbishment work within the BTL offer validity period.
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Precise has also designed a streamlined process which includes:
• one application form will produce two offers – one for the bridge and one for the BTL
• dedicated team of expert underwriters to provide help every step of the way
• the same valuer for both the initial valuation and the re-inspection (where possible)
• one conveyancer and discounted legal fees
• two procuration fees – one for the bridge and one for the BTL
• an exit already in place and the price of the BTL at offer will be the price they get on completion, providing there is no change in circumstances and the property meets the expected valuation following refurbishment
• landlords can borrow up to 75% LTV on the bridge and 80% of the post-works valuation on the exit BTL to help optimise cash flow.
Bridging rates start from 0.49% per month and no mortgage repayments are required while the refurbishment works are being completed.
Alan Cleary, managing director at Precise, said that this product gave landlords a new way of increasing rental yields.
“Landlords have traditionally faced difficulty in securing finance to refurbish a property before letting it out.
“This product enables them to do so, and it is backed up with a host of features which are designed to make applying for it as easy as possible.”
Crystal Specialist Finance helped Precise during the piloting of the product and completed a refurb BTL case in 17 days from start to finish.
“We have a very happy client, a positive outcome and a good experience,” said Jo Breeden, managing director at Crystal.
“We have plenty more of these cases to send to Precise Mortgages.”