InterBay Commercial revealed that 34% of landlords who had undertaken a refurbishment recently used their personal savings to finance their projects.
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Other highlights from the report included:
- 18% of landlords used a credit card or an overdraft to fund a recent refurbishment
- of those yet to refurbish a property, 32% expect to do so using a credit card and overdraft debt, while 31% will use personal loans
- 18% used a remortgage BTL loan to fund a previous refurbishment, with 30% expecting to use this option in the future
- 31% of landlords that would use mortgage finance said that they would like the ability to access smaller sums from a loan facility during the project
“Refurbishments can be a great way for landlords to both increase the attractiveness of their properties and its value, but it’s concerning that so many landlords are unaware of their finance options when undertaking such a project,” said Darrell Walker, head of sales at InterBay Commercial (pictured above).
“...With better understanding of the options at their disposal, landlords can choose from a variety of options from remortgaging to a bridging loan — making a refurbishment much more feasible and likely.
“Indeed, plugging the knowledge gap will not only benefit the landlord, but also the end tenant, too.”