Mortgage Cashback Offer
Cash Back Offer
Landlords looking at taking out a buy-to-let mortgage want to look at the Property Hawk Mortgage service with it’s free online mortgage finder service backed up by expert mortgage broker advice. For any additional landlord BTL mortgage advice have a look at the website.
As well as allowing landlords to access deals not available on the high street and receiving expert advice from buy-to-let mortgage experts; landlords who complete a mortgage will obtain a guaranteed £100 cash back for their troubles. For more advice & free quotes phone:
Tel: 029 2069 5446
Refurbishment to let
The classic approach for many landlords including myself is refurbishment of a property to let.
If you are lucky you have the cash to buy a property and then fund the refurbishment. Once the project is completed you can then refinance taking all your vital equity out of the project and leave your development profit in as the equity.
Typically, a landlord should be aiming at a profit margin of 15-20% on cost or 15% on final value to reflect the effort involved and the financial risk. So after spending on a £100,000 property investment with all your refurbishment works, the property should have an end value of at least between £115,000 – £120,000.
The presentation of rental accommodation can make a real difference to its appeal to tenants and also to its rental income. For example a modern kitchen and bathroom are highly desirable in a buy-to-let property. This will add to the rental value and also make the property more lettable reducing the length of any void period.
Properties that are in need of some light refurbishment work such as a new bathroom/kitchen, electrical work or damp-proofing, can be excellent investments for landlords. They may be able to purchase such a property at a reasonable price and then increase its value by undertaking some straightforward improvements.
There are a couple of buy-to-let lenders who currently have specific ‘light refurbishment’ products designed for landlords in this niche area. Saffron Building Society currently has two light refurbishment products including a 5.39% term tracker which is available up to 80% loan-to-value (LTV). They will provide finance based on the current property value and keep a retention of up to 80% of the estimated after-works value, which will then be released to the client after a satisfactory re-inspection of the property.
Shawbrook Bank also has its own ‘light refurbishment’ products, providing a wide range of fixed rates and tracker rates available up 75% LTV.
Saffron Building Society
4.99% 3 year discount with 2% completion fee up to 75% LTV
5.39% term tracker with 2% completion fee up to 80% LTV
5.50% with 1.5% completion fee up to 65% LTV (available as 3 year fixed, 5 year fixed, 3 year tracker or 5 year tracker)
5.70% with 1.5% completion fee up to 70% LTV (available as 3 year fixed, 5 year fixed, 3 year tracker or 5 year tracker)
5.85% with 1.5% completion fee up to 75% LTV (available as 3 year fixed, 5 year fixed, 3 year tracker or 5 year tracker)
Shawbrook Bank also has a ‘heavy refurbishment’ scheme for more significant undertakings although we do not have specific rates for it. It is treated more as a commercial mortgage.
Landlords looking to add to their portfolio whether it be a new build or property that requires some work should check out the deals with Property Hawk Mortgages or give them a call: