New Renovation Refurbishement and Self Build Scheme.
For own main residence purchase (self build / renovation) or remortgage
Correct as from 16/02/2009
- Up to 95% LTV advance for land purchase
- Plus up to 95% advance funding for all of the build costs
- No need for interim valuation visits between stages
- 95% funded product has a maximum total borrowing of £300k and total mortgage not to exceed 75% of the finished property value.
- Total borrowing amounts of up to £500k are limited to 85% LTV at outset and total borrowing not to exceed 75% of finished property
value.
- No need to sell existing main residence first (so do not have to live in caravan on site)
- Current interest rate of 5.59% (BoE Base rate + 4.09%)
- Lenders arrangement fee of 1.50% of loan amount added to the mortgage
- Self-Build administration fee of £395 payable on mortgage Offer.
- Our Fee is 0.50% payable on completion
- Early repayment penalty of only 1.00% in the first 3 years
- Mortgage fully portable to another property
- First Time buyers and self-employed applicants with less than 2 years in business are restricted to a final maximum of 70% of finished
value
- Advance funding fee payable payable on a sliding scale but charged at 2.75% of total build costs if applying for the 95% funding
option.
- Fast-Track legal services available (please supply postcode for quotation)
CALL US TODAY FOR SELF BUILD MORTGAGES
If you are purchasing a investment portfolio or HMO property below market value then we have a unique funding option where no deposit is
required. Click here for AMV Mortgage
Unique 85% Renovation mortgage - light refurbishment mortgage
THE ONLY VIABLE ALTERNATIVE TO BACK TO BACK BRIDGING AS EFFECTIVE 100+% FINANCE
Loans for Light Refurbishment - Property Refurbishment mortgage for small property developers and property investors. Buy
discounted properties in need of a make over and take out profit from the capital gain with this unique mortgage.
 Introducing the Light Refurbishment Mortgage as an alternative to 'back to back' financing for
profiting from Below market value (BMV) purchases and instant refinancing for release of equity based on true
market value after purchase.
Ideal for Property renovators: Looking to purchase properties below market value for refurbishment or development
for buy to let market or for resale profits. Cuts out the need and additional expense to Bridge and remortgage on 'bargain' properties
you wish to buy cheap and renovate for profit.
Key Points: Refurbishment & Renovation Mortgage
Interest Rate: Bank Base + 2.50%. Self Cert & No rental asessment
(correct as of 13/10/08)
Portable: Buy - Refurbish and sell on property and transfer the mortgage to the
next project without redemption penalty
OR: Buy refurbish and rent
(Correct as of 31/07/08)
 Self Cert Income - No Proof of earned income required. This is suitable for employed and self employed applicants
No proof of rental income - Suitable for properties with low market rent, or otherwise non-rentable
value properties, poor condition, distressed, defective propeties where other lenders will decline.
Borrow 85% of the purchase price - Property can be poor condition and not mortgagable condition for other lenders.
Maximum property loan size of up to £500,000 covers even the larger developments without needing specialist
development or bridging finance.
Instant refinance draw down facility- Where the property is purchased below market value, the mortgage may be increased
to 85% of the true market value
Finished Property Drawdown - Drawdown to 80% of the finished value of the property for further funds if
required
Sell the property - Only 1.00% redemption penalty for early repayment of the mortgage if you wish to sell the completed
property to realise full capital profits.
Portable. This mortgage facility is portable to your next renovation property, which means you avoid paying
the redemption penalty. (Ask for full details of how this works.)
Unlike development finance this mortgage needs No formal building estimates or QS, No architects drawings
required.
Renovations to property may range from a simple cosmetic makeover, to a full internal and external refit, roof
repairs, new kitchen, bathrooms, electrical rewire, CH installations. Perfect for below market value purchases, auction
properties or reposessions.
Apply Today!
House renovation for profit
This new mortgage product allows purchasers to purchase distressed, below market value residential property
for renovation and refurbishment project properties without needing specialist bridging finance or development funding.
Kitchen of a new modernised flat in Leeds
If you are a self employed property investor looking to purchase a property that needs some improvement work,
renovations, or updating. Finding the best financing deals may not be so easy now that lenders will no longer allow same-day refinance
deals. We have the ideal solution to financing property renovation or conversion projects.
Rebuilding a house
General Application process:
Contact us to discuss your requirements or ask any questions on this mortgage - Call us on 0800 496
9595
Please supply us with a description of the property in its current condition and purchase price
Please supply a list of all works required or intended to be carried out along with costs and build works
estimates
Give final value of the property (after refurb works value)
No Planning Permission needed
No architects drawings
No Formal building quotes or estimates
No QS or Building reports required
FAQ's: Questions and Answers about this mortgage
 Q&A Benefits over Bridging Finance...
Q: I often use bridging finance for purchasing renovation project property, and then remortgage once the work has been completed. What
advantages would this mortgage have over bridging in this situation?
A: With bridging finance on a property needing renovations or improvements lending is typically limited to 65% to 70% of the market value
therefore a greater sum is required for the deposit. Furthermore the interest charged on bridging would work out significantly more
expensive. Another important consideration is that in today's 'credit crunch' market BTL lenders such as mortgage express have changed
certain lending policies; they no longer allow capital raising remortgages inside of 6 months from the date of purchase. This means that the
back to back 'no money down' bridge and refinance deals on BMV properties are not possible. Also with bridge and remortgage transactions
you would have two sets of legal costs to pay as well as additional arrangement fees for the remortgage.
Q&A Buying undermarket value...
Q: I want to buy a property that is in need of total refurbishment the property is hence under valued and will be worth considerably more
once we have finished. Can I borrow a sum to cover the cost of the refurbishment works before the work has started or completed?
A: Yes it should be possible to borrow extra to cover the cost of your development or refurbishment works. Using the next day
refinance draw down, additional money required to carry out the refurbishments could be added to the mortgage.
Q&A Buying from auction...
Q: The property I am buying from a property auction is below market value only and does not actually require any work to be carried
out on the property, but as it is would be worth much more on the open market going by similar properties in the are. Can I use this
mortgage to purchase and then immediately refinance to get back my deposit, while I market the property to sell on?
A: Yes, providing the open market value of the property valued up then you would be able to take advantage of the draw down if needed,
refinancing to 85% of the open market value. The early redemption penalty on the mortgage is just 1.00% that makes this ideal for this
type of transaction.
Q&A No previous property development history...
Q: What type of information is required for obtaining the mortgage on a property to refurbish? I have some other BTL's but this would be
my first renovation project so does the lender require previous property development history?
A: No, the lender would not need extensive background in property development to qualify for this mortgage, you would however need to
supply a detailed list and costing on the proposed work you intend to carry on on the property along with any estimates from your chosen
builder to carry out the work.
Q&A Converting properties...
Q: I would like to buy a former hotel to convert into 5 residential flats, would this mortgage be suitable ?
A: Unfortunately this mortgage is for single residential dwellings only. Because the property you are buying is commercial, coupled with
converting it to 5 flats, this mortgage would not be suitable. You would need property development finance to fund the purchase and fund the
development costs. alternatively a bridging loan could be used to fund the purchase.
Q&A How many properties...
Q: How many properties can I buy with this mortgage?
A: This is limited to one mortgage facility per applicant at any one time. However once the property is completed and either sold or
refinanced to a BTL product, you may take out another light development mortgage for another property.
Q&A Demolish to rebuild...
Q: I want to buy a property with a view to demolish and rebuild as two houses. Could I use this mortgage to buy this property although I
don't have planning consent yet?
A: Yes, that could be possible. Purchase the property as cheap as possible with this mortgage without any planning as a planning gain
would drive the price up. Once you own the property you can make you planning application. Once planning has been approved you could
refinance to borrow development costs based on the GDV.
Q&A Light Refurbishment vs Self Build Mortgage
Q: What is the difference between this mortgage and a self build type mortgage?
A: The Self Build type mortgages require full planning approval upon application. The refurbishment mortgage does not require any planning
permission for the works you intend to carry out, also does not require architects drawing or ground reports.
Interested in finding out more about this unique property renovation mortgage, please contact us by
telephoning 0800 496 9595 (Mortgagemakers Ltd)
Find discount property for renovation
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ideal renovation property now.
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a fully-searchable database of over 20,000 renovation projects across the UK
Find Reposession Properties in London, hundreds of new properties uncovered each week.
HMO REFURBISHMENT MORTGAGES
Letting Property Refurbishment Mortgages. Buy to let Home of Multiple Occupancy
Mortgage for purchase of BTL or HMO property in need of refurbishment prior to letting.
Have you been offered a distressed property? High yeild Multi Let landlord opportunity inlcuding previous B&B, hotel, guest houses,
hostels or large Victorian house?
This new HMO or Multi Let mortgage allows the landlord or investor to purchase property like an old guesthouse with a
mortgage and then refurbish. After refurbishment and improvements to the property have been carried out the lender can advance additional
borrowing based on the new increased value of the improved property.
Borrow upto 85% of the purchase price/valuation for the unimproved property. No rental assesment is needed
to purchase the property. Then carry out the refurbishments and improvements to the property to make suitable for letting within 3 months.
With the property in renovated and improved letting condition the undoubtably the value of the property would have a significant increase in
value. Reclaim your refurbishment expenditure and borrow additional funds with an advance of mortgage funds now upto 85% of the
Improved property value subject to 125% rental cover assesment.
Recover Your costs of the refurbishment plus any additional capital required -Drawdown mortgage funds to 85% of the improved property
value.
"This is ideal for Landlords and investors who want to purchase a property in need of refurbishment and modernisation and want
to quickly recover their capital outlay"
- Purchase the property using this unique mortgage to borrow upto 85% LTV of its unimproved value
- Carry out your refurbishments, improvements, modernisations to the property for letting within 3 months
- Re-valuation of your improved letting property and borrow upto 85% of the Improved property value
"Now you can buy BTL and HMO property in need of renovations and still get 85% Mortgage to purchase"
This mortgage is Ideal for all landlords and BTL investors:
- Renovations of existing multi let property to higher standard accomodation.
- Properties without useable kitchens or bathroom or other general poor condition unsuitable for letting.
- Conversion of one dwelling into more profitable multi letting HMO property.
- Modernisation of property to current HMO letting regualtion standards.
- Buying discounted property in need of renovation to convert into letting property.
- Property developers and investors building a letting property portfolio.
- Buying 'Bargain' property at auction in need of modernisation and conversion to multiple letting accommodation.
Futher Highlights:
- Property does not need to be in lettable condition for completion of the mortgage / release of mortgage funds
- Property purchase is not subject to initial rental assesment
- Refurbishment works to be carried out within 3 months of completion
- Refurbishment is limited to Improvement work that does not require structural alterations requiring planning permissions and or
building regulation approval
- Final rental assesment at 125% rent cover and final mortgage to 85% of the improved property value
Refurbishment property purchase mortgage. GET A FREE QUOTE >
Please complete the simple form below so we may quote the mortgage on the best terms and lowest market
rates for you.
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