Loans will be made for the purpose of improving the quality of accommodation for the tenants, or prospective tenants.
Upon completion of the works funded by the loan the property must meet all relevant statutory requirements.
Loans are secured by a first charge or, in some cases, a second charge.
The maximum loan is the lesser of the cost of repairs/improvements, or 75% of the value of the property (if we are taking a second charge the total borrowings must not exceed 75% of value).
Applicants must be able to demonstrate that the loan can be repaid from the net income from the property. Alternatively, we would lend to a landlord who can prove income from other sources sufficient to fund loan repayments.
If necessary we can make stage payments as the work progresses and the value of the property increases.
Credit checks will be made on all applicants although we will not necessarily decline a customer with bad credit history (we are unable to lend to customers who are currently bankrupt).
The length of the loan will be agreed at onset, subject to a maximum term of 15 years.
The interest rate is variable and will be 2% above Bank of England rate, subject to a minimum rate of 5% and a maximum of 7.5%. y Repayments of capital and interest must be made monthly by direct debit.
The loan may be repaid (in whole or part) at any time without penalty.
The fee for registration of the legal charge and loan documentation will be £80.00 for loans up to £100,000 and £100.00 for loans between £100,001 and £200,000.
There will be an annual charge of £15.00, added to the account, to cover the cost of loan administration and statements etc.
Upon repayment of the loan there is a flat fee of £50.00 for cancellation of our registered charge.