Master broker launches white-labelled refurb bridge-to-let

Creative Commercial Funding, which already boasts an extensive range of borrowing solutions, will work with an unnamed lender, based in the North West, to provide the refurb bridge-to-let facility.

The product will offer borrowers an initial bridging facility for up to 80 per cent of a property’s purchase price with the option to extend it to 100 per cent of any retrospective refurbishment costs.

Unique to Creative Commercial’s offering, however, the refurb bridge-to-let deal offers borrowers an option to refinance their initial short term advance, transferring to a buy-to-let product after three months.

The initial bridging product has the following criteria:

- Monthly interest rate: 1.75 per cent
- Fees: TBC
- Interest available on a rolled-up basis if requested

The BTL scheme’s criteria are:

- Loan size: £80,000 to £500,000
- LTV: 80 per cent
- Interest rate: 4.99 per cent
- Fees: TBC
- Term: 2 to 40 years
- Rental coverage: 125 per cent of mortgage repayments
- Early repayment fee: Four per cent for two years

It is also available on an interest-only basis, also at 80 per cent LTV, requires no minimum income and has no restrictions regarding encumbered properties with other lenders.

The product can be extended to cover up to six properties to provide a maximum of £1 million, but cannot be used to finance HMOs or Limited Companies.

All of the above criteria are subject to underwriting criteria.

Aidan Tiernan, Managing Director at Creative Commercial Finance, said:

“For the right client, we believe this will revolutionise the way in which borrowers buy rental properties in need of refurbishment.

“Our built-in refinance offer, which allows the borrower to transfer their bridge to a more conventional buy to let product at three months, is totally unique to the market.”