It’s quite common for borrowers to carry out major home improvements on a property they have just purchased or have lived in for many years.
Often they need extra cash to complete the project but have moved out or have gutted the property – sometimes even removed the bathroom and kitchen.
Under these circumstances most normal lenders are not interested. Many people then turn to unsecured or bridging finance which can be expensive.
However there is another option of a prime second charge you could explore for your refurbishment loan.
- One of our clients had just purchased and gutted the property so was yet to move in. He was considering a bridging loan.
Our loan rate was less than half the bridging rate with no requirement to refinance so he saved money on the rates, refinancing fees and hassle too.
- Another borrower had lived at the property for years and moved in to rented accommodation whilst the house was extended and gutted. There was no bathroom or kitchen.
Despite the property not being mortgage-able and the extension not being weather tight we arranged a Prime loan because the lender was happy with the client’s stability and profile.
If you are doing major home improvements and realise you are short of cash half way through the project, talk to Promise about a prime second charge home improvement loan.
There are even options for Buy to Lets’ so this can be an option for landlords too.
If a bridging loan is a more suitable option we can consider that but we will consider the alternatives for you too.