Find out why it’s crucial to have the right funding when considering the ‘Refurb Boom’. Learn about remortgages, bridging loans, and specialist development finance and how to identify the best loan for your client’s needs. Save time and write more business with the help of Provide Finance’s platform.
Miranda Khadr, Founder of Provide Finance – First published in The Intermediary Magazine
For many property investors, refurbishment is going to be the key word in the next couple of years. Polishing up an existing property to better suit the needs of prospective tenants has long been an established tactic among landlords. But it’s sure to take a greater focus over the short term.
A big factor in this increased focus are the incoming rules around Energy Performance Certificate (EPC) ratings. From 2025, new tenancies will only be permitted if the property has at least a C rating, up from its current minimum rating of E. This is then being extended to all tenancies from 2028, with plenty of rental properties requiring some level of refurbishment in order to hit that level.
EPC ratings are not the only driver for refurbishment projects, though. Investors may feel that a property needs to be revamped to stand out from the rental competition. Or even adapted to attract a different sort of client. Perhaps by converting it from a standard property into an HMO.
As a result, brokers are sure to see significant interest from their investor clients hoping to raise the funds to cover those refurbishment projects.
The Funding Options
Thankfully, for those clients, there are plenty of different funding options available.
For some landlords, it will be most appropriate to simply stick with a remortgage for a higher sum. Especially if they are approaching the end of an existing fixed rate deal. However, if the client is still within the initial period of a fixed rate deal, then opting for this could mean dealing with substantial exit fees.
Working out the type of product which is most appropriate for the client is only the start. Of course, the big test for a broker is to identify the actual loan that best meets their needs.
The specialist market is not always a straightforward one when it comes to sourcing products. Any adviser working in this industry will have horror stories of the days and weeks spent going through individual lender criteria in order to pinpoint one that might work for a particular case.
It’s because of those overwhelming timescales that we built Provide Finance. A smart-tech solution that supports brokers by pinpointing the right products in a fraction of the time. We understand that the process can be a slog, and have therefore developed a platform that takes on some of the burden.
Smart partnerships help to deliver a faster, more efficient funding experience – allowing brokers to help their clients quickly, and writing more business in the process.