Christian Faes’ online mortgage broker LendInvest has debuted a new refurbishment finance product aimed at accomplished property pros.
Designed for those looking to renovate or refit, the loans are lent against the project’s GDV and funds are released at stages throughout the works. Interest is rolled up and paid at the end of the term.
Here’s a summary of what’s being offered:
- The loan is based on GDV, not LTV, and has more than one drawdown
- Interest is charged at 0.92% – 1.1% per calendar month and payable at the end of the term
- Available on loans between £100,000 and £2m
- Available on terms up to 18 months
- A maximum loan-to-value of 70% applies
Steve Larkin, Director of Development Finance at LendInvest: “At LendInvest, our deep experience of lending both bridging and development finance puts us in an desirable position that allows us to develop tailored products like our new refurbishment loans. These will appeal to the type of property professional for whom an LTV-based bridging loan is not flexible enough, yet who doesn’t need a full development loan for their relatively straightforward refurbishment project. Basing our refurbishment loans on GDV not LTV means more leverage for the developer and less capital needed upfront.
“It’s this flexibility that is crucial to borrowers, and for which LendInvest loans are increasingly becoming known among borrowers and their intermediaries.”
The broker, now one of the largest non-bank lenders in the UK, rolled out development exit loans in October and auction finance in December 2016.