Online mortgage lender LendInvest has launched a new refurbishment finance product.
The finance solution is aimed at property investors who want to renovate or refit properties.
Although similar to a bridging loan, LendInvest's refurbishment loans are lent against a borrower's gross development value (GDV) and funds are released at stages throughout the refurbishment project.
The lender confirms that interest is rolled up and paid at the end of the term.
The product will be available on loans between £100,000 and £2 million on terms of up to 18 months.
Meanwhile, interest is charged at 0.92% - 1.1% per calendar month and payable at the end of the term.
"These [products] will appeal to the type of property professional for whom an LTV-based bridging loan is not flexible enough, yet who doesn’t need a full development loan for their relatively straightforward refurbishment project," says Steve Larkin, LendInvest's director of development finance.
"Basing our refurbishment loans on GDV not LTV means more leverage for the developer and less capital needed upfront," he says.
Larkin says that flexibility is crucial to borrowers.
Refurbishment finance is Lendinvest’s first product to be launched in the new year, following the rollout of development exit loans in October and auction finance in December last year.