The benefit on these products are:
There a a number of schemes available that we have access including:
1) 70% of the purchase price can be financed with a pre-agreed retainer of up to 70% of the property's value after the works have been completed. Subject to a max of £25K and a maximum period of 3 months
2) 65% of the purchase price can be financed with a pre-agreed retainer up to 70% of the property's value after the works have been complexed. There is no cap on the retaintion and the maxiumum period of the renovation is 6 months.
Real Life Example - How it provided over 100% finance
This is a real deal that went from application to mortgage offer in 11 working day (incl a full refurbishment valuation which took 5 days of the 11 days).
Summary of the deal
Purchase Price £95,000
Refurb costs £10,000
Valuation after refurbishment £160,000
Loan agreed in mortgage offer £112,000 (70% of the completed value)
Loan will cover the purchase price, the refurb costs and leave the customer with £7,000 and enjoying the annual rent of £21,300
The financing starts off with the customer needing to put in a 35% deposit when the property is purchased and must then carry out the refurbishment with their own funds. After this is completed and verified by the surveyor the lender will release the retention to bring the loan up to the £112,000 and provide over 100% financing.