Hampshire Trust Bank (HTB) introduces a cutting-edge Heavy Refurbishment product to enhance property finance options.
- The new finance product offers a monthly rate of 0.90% with terms extending up to 24 months.
- Available funding allows for up to 70% of a property’s current value with a maximum loan-to-GDV ratio of 70%.
- The minimum loan amount is set at £150,000, with a cap on work costs at £1 million, subject to verification.
- This initiative aims to provide flexible and agile funding solutions for landlords and property developers.
Hampshire Trust Bank (HTB) has recently expanded its offerings in the property finance sector by launching a new Heavy Refurbishment product. This innovative solution is geared towards assisting landlords and property developers who are seeking flexible funding options for substantial renovation projects involving property extensions or conversions. With a competitive monthly interest rate of 0.90% and loan terms extending up to 24 months, this product is designed to facilitate projects that demand significant investment.
The Heavy Refurbishment finance from HTB allows borrowers to secure funding up to 70% of a property’s current valuation. It also maintains a maximum loan-to-Gross Development Value (GDV) ratio of 70%, which includes interest that is rolled up over time. Loans are available from a minimum amount of £150,000, and the product ensures that the total cost of works does not exceed £1 million, including self-funded contributions and contingencies. All proposed costs must undergo independent verification by asset managers to qualify.
Lorenzo Satchell, HTB’s sales director for bridging, highlighted the demand for such products by stating, “HTB has taken the time to listen to our key partners about what they need from lenders, and it’s clear there’s a strong demand for Heavy Refurbishment funding.” He noted the growing interest among landlords in extending properties and executing conversions under permitted development rights, which consequently require funding that is agile and adaptable to meet these needs.
The product’s deployment structure involves distributing funds in arrears across a maximum of five pre-agreed tranches, ensuring a controlled and monitored dispersal of resources. Alex Upton, the managing director of specialist mortgages at HTB, articulated the strategic importance of the Heavy Refurbishment product, emphasising the bank’s commitment to enhancing its bridging finance offerings. Upton stated, “This product not only expands our proposition but also reflects our dedication to providing brokers with flexible, adaptable solutions that fit even the most complex client requirements.”
HTB’s strategic rollout of the Heavy Refurbishment product underscores the bank’s focus on empowering brokers by ensuring access to requisite funding at critical phases of property development. Upton further highlighted that the commitment involves granting brokers direct contact with decision-makers, allowing for seamless support throughout their engagement with HTB.
Hampshire Trust Bank’s Heavy Refurbishment product offers significant flexibility and control, aligning with the needs of contemporary property developers.
