Castle Trust Bank has launched a light refurbishment product with a drawdown facility.
The new product is designed to help developments delivered beneath Permitted Development Rights (PDR), the conversion of properties into smaller HMOs and reconfigurations in addition to smaller renovations reminiscent of rewiring, new kitchens and loos.
It allows debtors to entry funds in staged drawdowns, so that they solely pay curiosity on the quantities they really draw.
Light refurbishment with drawdowns is out there on initiatives with a most works value of as much as £500,000, and every drawdown have to be a minimal of £25,000.
The product is out there as much as 75% web loan-to-value and consists of the choice for beneath market worth purchases.
Castle Trust Bank business director Anna Lewis says: “We’ve already seen a powerful demand from brokers and traders for a drawdown facility on Heavy Refurbishment initiatives, the place purchasers wish to handle their cashflow extra effectively and keep away from paying curiosity on undrawn funds.”
“But the environment friendly use of capital doesn’t must be contained to bigger schemes and our new Light Refurbishment with Drawdowns product provides investor the pliability to tackle a wider vary of initiatives, with the boldness that they’ll draw on the funding they want, after they want it.”
