BuildLoan has teamed up with Intelligent Finance to offer a mortgage product specifically for people looking to renovate a run-down property.
BuildLoan says many prospective renovators find it difficult to fund improvements because lenders often apply retentions. The company claims its advance stage payment scheme, which releases improvement costs in stages during a project, can help.
The new product is a 2-year fixed rate mortgage at 6.09%, with the ability to offset by putting money for future renovation stages into the offset savings account, minimising mortgage payments during the project.
BuildLoan says the scheme is also useful for people who wish to extend their home, rather than going through the costly process of moving to a larger home.
Commenting on the launch, Brian Ewing, head of intermediary sales at Intelligent Finance, says: “Not only does the 2 year fixed rate mean mortgage payments are capped during their project when outgoings are high, but holding the advance stage releases in the offset savings account during the project until bills are paid shows a real benefit of offsetting to the client by keeping their monthly mortgage payments to a minimum during the project.”
The new product is available from Intelligent Finance from 1 October and features a £999 arrangement fee and can lend up to 85% LTV or £500,000.
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