Mortgages for property refurbishment

Our mortgages for property refurbishment offer the security of an approved long-term investment mortgage following an initial refurbishment period, with flexible payment options. Complete the refurbishment within the 12 months and benefit from a hassle-free and fee-free transition to a pre-approved investment mortgage.

Most Innovative Property Loans Provider 2019

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Most Outstanding Commercial Mortgages Bank of the Year 2018

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Key features

Mortgages from £250,000 to £6.0m, up to £4.0m per single property
Up to 70% of the lower of the purchase price or value at commencement
Net rental income should be at least 130% of monthly repayments on completion of the refurbishment.

Phase 1: simple refurbishment finance

We will lend up to 70% of the refurbishment cost, capped at a maximum loan of £230,000 for refurbishment costs (equating to 70% of a £330,000 total refurbishment cost)
Maximum 12 months to complete refurbishment.

Phase 2: seamless transition to fixed term mortgage

Loans up to 70% of the Gross Development Value
Fixed terms from 2-30 years (30 years max for Residential properties/25 years max for Commercial properties)

Your client should normally:

Be a property investor with a minimum of two years' experience, with a portfolio of at least four properties for this period; and
Have at least two years' experience of property refurbishment, on a minimum of two properties in England, Scotland or Wales.

Our refurbishment loans are also available to owner-occupier businesses looking to refresh their own property, subject to suitable experience.

The ideal finance package for investment properties. Our mortgages for property finance combine the property purchase and refurbishment into one simple loan at the start of the project:

One lending partner throughout
Start the refurbishment quicker with a fast decision
One specialist team supporting your client's project end-to-end
No fee to convert to term loan (fees apply if your client decides to move lenders or sell)
Smooth transition into the term phase, with less paperwork
Ideal for HMOs
Interest only and roll up options available.

Next steps

From flats and houses to retail, service centres, offices, manufacturing sites, warehouses and distribution centres - as well as mixed-use properties - Redwood Bank will consider the application if your client meets our criteria (see above).

We assess each mortgage application individually with common sense, speed and an appreciation of the ambitions of your client's business in mind.

Property secured on the loan may be repossessed if repayments are not maintained.