United Trust Bank has introduced a new flexible ‘Residential Property Improvement Loans’ product, aimed at experienced property professionals.
The product offers a choice of competitive loan options, funding both the improvement works and acquisition costs or alternatively, just the costs. The facilities are suitable for developers wishing to carry out a range of projects from extensions to complex conversions as well as straightforward refurbishment projects. The exit can be the sale of the property once works are complete or refinancing of the loan if the property is to be retained for letting.
The Funded Works Improvement Loan allows the borrower to fund 100% of the improvement costs (maximum of £500,000 or 50% of initial market value, whichever is the lower) and to borrow a maximum of £1,500,000 subject to a maximum 70% of LTGDV. Interest will be charged at 0.95% per month and be added to the loan.
Where the borrower intends to fund the improvement works themselves, UTB will provide up to 70% of the purchase price with interest charged at 0.75% per month and added to the loan.
Applicants must have successfully completed at least two similar projects.
Gavin Diamond (pictured), head of sales and underwriting in United Trust Bank’s bridging division, said: “With terms of up to 18 months, these flexible and extremely competitive new loans will appeal to experienced property improvers looking for excellent value and the opportunity to work with a finance partner that understands the property business, the process and the challenges which can often arise during a residential improvement project.
“This product is something of a bridging and development finance hybrid. But like many of the products brought to market by United Trust Bank, it is a specific response to demand and has been developed in consultation with our broker partners.
“The team at United Trust Bank has decades of collective experience in the property sector as well as in short term secured finance, and can provide much more than just the pounds and pence required to successfully complete a project, especially should complications crop up along the way.”