Castle Trust Bank relaunches heavy refurbishment with drawdowns

Castle Trust Bank has relaunched its heavy refurbishment with drawdowns bridging product.

The product enables borrowers to draw funds in stages throughout a project, rather than receiving the full loan amount on day one. This means they only pay interest on the funds they have actually drawn, helping to reduce overall borrowing costs and improve cashflow management during the refurbishment process.

The heavy refurbishment with drawdowns product is designed for larger projects where planning permission is required, including house-to-flat and flat-to-house conversions, as well as other substantial refurbishment schemes.

Available up to 75% net LTV and 70% LTGDV, the product offers loan sizes from £250,000 to £5m, with terms of up to 18 months. Borrowers can access works funding through staged drawdowns, with a minimum drawdown amount of £25,000 and works costs of up to £750,000 funded in arrears.

The product is available at rates from 1.02% per month, with a 2.00% arrangement fee.

Anna Lewis, commercial director at Castle Trust Bank, said: "We’ve seen growing demand from brokers and property investors for funding solutions that provide greater flexibility and help improve the overall economics of refurbishment projects.

"As investors become increasingly focused on managing costs and protecting margins, staged drawdowns offer a practical way to reduce unnecessary interest costs by ensuring borrowers only pay for the funds they have actually used.

"Our heavy refurbishment with drawdowns product gives investors greater control over their cashflow and enables funding to be aligned with the pace of works on site.”