WITH INCREASED DEMAND FROM CLIENTS, MORE PRODUCTS AND CHEAPER RATES THAN EVER BEFORE.
The property refurbishment market is growing, driven by greater demand from clients and more supply from lenders. With increased tax and regulation putting the squeeze on buy-to-let, more property investors are realising that they can generate better returns by buying a run-down property and doing it up for sale, or to achieve higher rental income. In a sluggish property market, many homeowners are also choosing to make improvements to their home rather than go through the process of moving.
This demand is being met by greater availability of refurb lending than we have ever seen before and at cheaper rates. It’s possible at the moment to get a short-term loan for light property refurbishment with rates starting from just 0.44% per month (5.28% pa).
In the last year we have seen a lot more products introduced that are structured to fund refurbishment products both for light refurb and heavy refurb projects, where planning permission is required or there is a change of use. We are seeing a lot of clients make use of this funding as they recognise that a loft conversion, extension, or even a basement dig, can add a lot of value, and we are able to work alongside the other teams at Brightstar to put an exit in place for the loan.
READ MORE about how Brightstar are still able to help with bridging finance cases that require a fast turnaround.