Castle Trust Bank has launched a light refurbishment product with a drawdown facility.
The new product is designed to help developments delivered underneath Permitted Development Rights (PDR), the conversion of properties into smaller HMOs and reconfigurations in addition to smaller renovations akin to rewiring, new kitchens and loos.
It allows debtors to entry funds in staged drawdowns, in order that they solely pay curiosity on the quantities they really draw.
Light refurbishment with drawdowns is offered on tasks 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 offered as much as 75% web loan-to-value and consists of the choice for beneath market worth purchases.
Castle Trust Bank industrial director Anna Lewis says: “We’ve already seen a robust demand from brokers and traders for a drawdown facility on Heavy Refurbishment tasks, 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 have to be contained to bigger schemes and our new Light Refurbishment with Drawdowns product offers investor the pliability to tackle a wider vary of tasks, with the arrogance that they will draw on the funding they want, once they want it.”
