Castle Trust Bank launches lightweight refurbished products through accumulative products – Mortgage Strategy

Castle Trust Bank has launched a lightweight renovation product with reduced facilities.

The new product is designed to support developments provided by permitted development rights (PDR), converting properties to smaller HMOs and reconfigurations as well as smaller renovations such as rewiring, new kitchens and bathrooms.

It enables borrowers to access funds in phased divisions, so they can only pay interest in the amount they actually withdraw.

Lightweight renovations with reductions can be offered on projects with maximum engineering costs up to £500,000, each shrinkage must be at least £25,000.

The product offers up to 75% net loan value, including options for buying below market value.

“We have seen strong demand from brokers and investors for shrinking facilities for a large number of renovation projects, and clients want to manage their cash flow more effectively and avoid paying interest on unearned funds,” said Anna Lewis, Business Director of Castle Trust.

“However, there is no need to include the effective utilization of capital in a larger plan, and our new light-disk gear with shrinking products gives investors the flexibility to work on more projects with confidence and to draw on the funds needed when needed.”