Funding 365 has raised the maximum gross loan-to-value (LTV) on its Light Refurbishment product to 85%.
The change, effective immediately, allows borrowers to access facilities of between £100,000 and £1 million for up to 18 months, with rates starting from 0.93% per month.
Qualifying projects at the new upper LTV limit include single-storey extensions, loft conversions and other light refurbishments.
The enhanced offer remains a first charge, unregulated product and is available for residential properties only.
LTV calculations are based on the lower of the open market value or the purchase price.
Funding can be used to cover up to 100% of build costs, in arrears, up to a maximum of 80% net loan-to-cost (LTC).
Build costs may total up to 40% of the property’s open market value, but the gross loan must not exceed 75% of the loan-to-gross-development value (LTGDV).
For projects that fall within a lower leverage range of up to 75% gross LTV, loans are available up to £5 million, with interest rates starting from 0.69% per month. In such cases, semi-commercial properties may also be eligible, provided the commercial element does not exceed 30% of the total property value.
INCREASING DEMAND
The move comes in response to growing demand among property investors and developers for greater flexibility in financing lighter refurbishment schemes, according to the lender.
Funding 365 director, Paul Weitzkorn (pictured), said: “We have seen strong demand for our highly competitive Light Refurbishment product since we launched it two years ago.
“However, as we all know, uses for bridging finance are constantly evolving and we have experienced a significant increase in enquiries for borrowers looking for higher leverage over the past year.
“We are delighted that our new higher LTV cap means that we will be able to help even more borrowers to realise their refurbishment projects.
“We encourage everyone to speak to one of our decision-making underwriters for more information, quick indications and credit-backed terms.”
