The products – the funded works improvement loan and the unfunded works improvement loan – offer a choice of loan options; funding either the acquisition costs and improvement works or just the acquisition costs.
The loans are suitable for developers who wish to carry out a range of projects and the exit can be the sale of the property once works are complete or a refinancing of the loan if the property is retained for letting.
The funded works improvement loan allows the borrower to fund 100% of the improvement costs at a maximum of £500,000 or 50% of initial market value, whichever is lower, and to borrow a maximum of £1.5m subject to a maximum 70% of loan to gross developed value (LTGDV).
Interest is charged at 0.95% per month and added to the loan.
The unfunded works improvement loan is suitable for a borrower who intends to fund the improvement works themselves with UTB providing up to 70% of the purchase price with interest at 0.75%.
Gavin Diamond, Head of Sales and Underwriting at UTB’s Bridging Division, said: “With terms of up to 18 months, these flexible and extremely competitive new loans will appeal to experienced property improvers looking for excellent value and the opportunity to work with a finance partner that understands the property business, the process and the challenges which can often arise during a residential improvement project.”
All applicants must have successfully completed at least two similar projects with Gavin describing the product as “something of a bridging and development finance hybrid”.
“Like many of the products brought to market by United Trust Bank, it is a specific response to demand and has been developed in consultation with our broker partners,” said Gavin.
“The team at United Trust Bank has decades of collective experience in the property sector as well as in short-term secured finance, and can provide much more than just the pounds and pence required to successfully complete a project, especially should complications crop up along the way.”
To find out more about the new products click here.
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