Hampshire Trust Bank (HTB) has launched a new Heavy Refurbishment finance product, expanding their property finance range.
- The product offers a competitive monthly rate of 0.90% for loans up to 24 months.
- Funding begins at £150,000 with a maximum loan-to-GDV ratio capped at 70%, including rolled interest.
- The cost of refurbishment cannot exceed £1 million and funds are released in up to five tranches.
- HTB aims to offer flexible solutions for landlords seeking to enhance property yields or undertake conversions.
Hampshire Trust Bank has expanded its array of property finance products with the new Heavy Refurbishment offering, designed to meet the evolving needs of landlords and property developers. This strategic move sees the introduction of a funding solution with a competitive interest rate of 0.90% per month, applicable for financing terms that can extend up to two years.
In this scheme, loan values start at a minimum of £150,000, with a maximum loan-to-gross development value (GDV) ratio maintained at 70%, including rolled interest. This threshold ensures that funding support is substantial yet controlled, catering to projects that require significant investment without exceeding a £1 million cap on refurbishment costs, inclusive of self-funded components and contingencies. All associated costs undergo rigorous validation by independent asset managers, maintaining fiscal responsibility and accountability throughout the development process.
The structured disbursement of funds, distributed in arrears across a pre-defined sequence of up to five tranches, offers flexibility and control to the borrower, aligning with project milestones and cash flow requirements. Thus, facilitating a balanced approach to financial planning wherein developers can manage resources effectively while progressing through various phases of refurbishment.
Lorenzo Satchell, the sales director of bridging at HTB, highlighted the tailored nature of this product to meet landlords’ needs. “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 stated, emphasising the agile and flexible nature of the offering that accommodates both property extensions and conversions with existing development permissions.
Furthermore, Alex Upton, managing director of specialist mortgages, remarked on HTB’s broader ambition to continuously refine their service offerings. He asserted, “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.” This sentiment highlights HTB’s commitment to supporting brokers with direct access to decision-makers, ensuring they are well-equipped to address varying client needs effectively.
With the launch of their Heavy Refurbishment product, Hampshire Trust Bank positions itself to better support property investors with tailored financial solutions.
