The products are available to individual and limited company landlords, up to 75% LTV, with a choice of product fee options.
CHL Mortgages has launched a light refurbishment buy-to-let (BTL) range aimed at landlords wanting to carry out non-structural or modernisation works to improve rental yield and value.
The products are available to individual and limited company landlords, up to 75% loan-to-value (LTV), with a choice of product fee options.
The range was designed for investors looking to make upgrades such as installing a new bathroom or kitchen, replacing fixtures and fittings, windows and doors, roof coverings, full rewiring, or converting a C3 dwelling to a C4 house in multiple occupation (HMO) property.
Rather than using a bridging loan followed by a BTL mortgage, borrowers can now opt for a single BTL term mortgage, removing the need for two sets of legal fees.
Initial mortgage advances are based on pre-works rental and market valuation figures, with a retention held for the difference between pre- and post-works values.
Once works are finished and confirmed, a reinspection is carried out to confirm the post-works rental and market value figures.
Retention funds are released after reinspection approval.
2-year fixed rates start from 4.40% for single dwelling properties and 4.50% for house in multiple occupation (HMO) and multi-unit freehold block (MUFB) properties with up to six bedrooms or units.
5-year fixed rates start from 6.11% for single dwelling properties and 6.21% for HMO and MUFB properties with up to six bedrooms or units.
Mil Consiglio (pictured), head of sales at CHL Mortgages, said: “Our new light refurbishment range is all about giving landlords the freedom to unlock the potential in their properties.
“It offers them a simple way to add value through non-structural or modernisation upgrades before letting them out, and it’s ideal for investors looking to refresh tired stock or turn vacant or under-used properties into high-quality, income-producing homes.
“The beauty of light refurbishment is that it provides choice.”
Consiglio added: “Brokers now have an alternative option to present to their clients compared to the traditional approach of taking out a bridging loan and then securing a buy-to-let product once works are completed.”