Mortgages  

Precise returns to refurbishment buy-to-let

Precise returns to refurbishment buy-to-let

Precise Mortgages has returned to the refurbishment buy-to-let marketplace in a bid to help landlords maximise rental yields. 

The lender relaunched the product with a bridging option offering rates from 0.54 per cent per month and an exit onto a long-term buy to let mortgage.

Precise Mortgages will not require the loan to be repaid whilst refurbishment works are being completed. 

Adrian Moloney, group sales director at OneSavings Bank, said: "The relaunch of our popular refurbishment buy-to-let proposition demonstrates how committed we are to supporting the market and our broker partners.

"Landlords have traditionally faced difficulty in securing finance to refurbish a property before letting it out.

"Refurbishment buy-to-let enables them to do so by bringing together the flexibility of bridging finance together with the surety of an exit onto a long-term buy to let once the improvement work has been completed, provided the property meets the expected valuation following refurbishment."

Landlords will be able to borrow up to 65 per cent LTV on the bridge and 75 per cent of the post-works valuation on the exit buy-to-let mortgage, which the lender said would "help borrowers maximise cash flow". 

This week has seen other lenders re-launch into certain mortgage markets, with Yorkshire Building Society making a return to the 90 per cent loan-to-value space. 

The building society said it hoped its new range would give greater choice to borrowers with smaller deposits, in what it described as a “limited market”.

rachel.mortimer@ft.com

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