Castle Trust Bank has launched a new light refurbishment bridging product that allows borrowers to access funds in stages, extending the flexibility it first offered with its heavy refurbishment loans last year.

The new facility is aimed at projects such as conversions under Permitted Development Rights, smaller HMO schemes, reconfigurations, or modest renovations including rewiring and new kitchens or bathrooms.

Borrowers can draw down funds as needed, with interest charged only on amounts taken, reducing overall borrowing costs.

Light Refurbishment with Drawdowns is available on schemes with works costs up to £500,000, with each drawdown set at a minimum of £25,000. The product is offered at up to 75% net LTV and supports below market value purchases.

The move follows the success of Castle Trust Bank’s heavy refurbishment drawdown product, launched in 2023, which the lender says has proved popular with brokers and investors seeking to better align borrowing with project stages and cashflow.

Anna Lewis, commercial director at Castle Trust Bank, said: “We’ve already seen a strong demand from brokers and investors for a drawdown facility on heavy refurbishment projects, where clients want to manage their cashflow more efficiently and avoid paying interest on undrawn funds.

“But the efficient use of capital doesn’t need to be contained to larger schemes and our new light refurbishment with drawdowns product gives investors the flexibility to take on a wider range of projects, with the confidence that they can draw on the funding they need, when they need it.

“It’s another example of how we’re building a bridging proposition that not only adapts to investor needs but actively empowers them to move quickly, stay in control of their funding, and maximise returns in a competitive market.”