BuildLoan has launched its Light Renovation range for properties that need non-structural renovation but are not yet mortgageable.
The products are suitable for non-structural works, have a quicker application process and lower fees, making it easier to buy, remortgage and renovate these properties.
The range allows customers to borrow up to 85% of the property price or value and up to 100% of the renovation costs.
To qualify, properties must be wind and watertight, and planning permission should not be needed for any works.
Covered works include loft conversions, kitchen and bathroom replacements, rewiring and heating installation.
Chris Martin, head of product development and lender relationships at BuildLoan, said: “Typically, if a client’s property is uninhabitable and they can’t secure a standard residential mortgage, brokers default to bridging.
“But bridging loans can be costly with high fees and interest rates and short repayment terms.
“Thanks to this new Light Renovation range, we can provide a safer, more affordable alternative to plug this gap in the market and help clients opt for redevelopment projects that can be both financially lucrative and environmentally friendly.”
Martin added: “And because of the streamlined application process and reduced fees, the range makes it easy for clients to buy, remortgage and renovate ‘doer-upper’ properties.
“With over 20 years of stage payment expertise, we are a specialist in homebuilding finance solutions and we are uniquely positioned to lead innovation within the renovation finance space.
“We are particularly proud of this range of revolutionary products.
“This is a major development for the intermediary mortgage market, providing brokers with a range of go-to funding solutions for uninhabitable properties.”