As a result of The Mortgage Works (TMW) withdrawing its light refurbishment range last week, Precise Mortgages has received a record number of enquiries for its Bridge-to-Let (B2L) product.
TMW has withdrawn its Light Refurbishment range and is no longer accepting applications for unlettable properties. The product for loans up to £500,000 was made available up to 70 per cent LTV, on the proviso that the light refurb work was completed within three months.
This exit has made a gap in the market for borrowers to attain funding for light refurbishment work and for unlettable properties. Precise Mortgages
has now launched a new campaign promoting its Bridge-to-Let product to help brokers seeking refurbishment bridging.
Alan Cleary, Managing Director of Precise Mortgages
, told B&C: “Our Bridge-to-Let product will not only help landlords with refurbishment deals but it will also offer them the option after four months into the term to convert their bridging loan into a buy-to-let mortgage.
“We’ve received a record number of enquiries and applications this month and, as of Monday next week; we will have a special phone Interactive Voice Response (IVR) option for brokers specifically for light refurbishment enquiries.
“We have trained a dedicated response team to deal solely with these enquiries to further assist with applications and enquiries.”
The lender is currently rolling out a campaign, in conjunction with and exclusively with its Premier Panel, which includes master brokers Only Bridging and
“We are working closely with our Premier Panel at this moment in time as a result of the record applications we are receiving and especially in response to the surprise withdrawal of TMW’s light refurb product,” Alan added.
will offer bridging loans on lettable and unlettable properties, dependant on the specific deal, but if a landlord does want to switch the bridging loan into a buy-to-let mortgage, after four months, the property must be in a lettable state.
If a successful conversion does occur then the introducing broker will also benefit from two commissions, one for the initial bridging loan and another for the newly agreed buy-to-let facility.
The product has proved popular amongst brokers as landlords struggle to find buy-to-let mortgages on properties in need of a refurbishment, before they let it out.
Precise’s Bridge-to-Let product allows the customer to simply take a bridging loan up to 75 per cent LTV to complete the purchase and refurbishment works and then switch onto a traditional buy-to-let mortgage anytime from month four onwards.
’ bridging rate start at 0.85 per cent and the lender will also lend 100 per cent of the purchase price as well as additional funding needed to carry out the works, which includes fitting a new kitchen, bathroom, carpets and general maintenance throughout.
To recap, the landlord simply needs to buy the property and identify the work needed. They then carry out the refurbishment, and after four months they can apply for a Precise Mortgages exclusively priced BTL product. The property will then be revalued, which is free along with the remortgage legal fees.
The answer could be as simple as purchasing an investment property that requires refurbishing by using a bridging loan, then exit onto a BTL product which allows the investor to cash out up to 75 per cent of the end value of the property.