Castle Trust Bank has relaunched its Heavy Refurbishment with Drawdowns bridging product, aimed at property investors undertaking larger refurbishment and conversion projects.
The specialist lender said the product had been reintroduced in response to growing demand from investors seeking more flexible and cost-effective refurbishment finance.
The facility allows borrowers to draw down funds in stages as a project progresses, rather than receiving the full loan amount at the outset.
As a result, interest is only charged on funds that have been drawn, which can help reduce borrowing costs and support cashflow management during refurbishment works.
The product is designed for larger-scale refurbishment schemes where planning permission is required, including house-to-flat and flat-to-house conversions, as well as other substantial redevelopment projects.
Available up to 75% net loan-to-value and 70% loan-to-gross development value, the product offers loan sizes from £250,000 to £5 million with terms of up to 18 months.
Borrowers can access refurbishment funding through staged drawdowns, with a minimum drawdown amount of £25,000. The lender will fund works costs of up to £750,000 in arrears.
Pricing starts from 1.02% per month, with a 2.00% arrangement fee.
Anna Lewis (pictured), commercial director at Castle Trust Bank, says: “We’ve seen growing demand from brokers and property investors for funding solutions that provide greater flexibility and help improve the overall economics of refurbishment projects.
“As investors become increasingly focused on managing costs and protecting margins, staged drawdowns offer a practical way to reduce unnecessary interest costs by ensuring borrowers only pay for the funds they have actually used.
“Our Heavy Refurbishment with Drawdowns product gives investors greater control over their cashflow and enables funding to be aligned with the pace of works on site.”
Castle Trust Bank said the product forms part of its wider refurbishment finance proposition for professional property investors and developers.
