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BTL refinancing after works


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Hi all,

First time on the forum, and a relative newbie to property investing.

I am currently positioning myself to start my BTL business next year. I have enough money saved to buy a property in my area and do some work to bring it up to standard. My strategy is to buy somewhere that needs some work done (nothing too adventurous - new kitchen, cosmetic work etc.) then aim to refinance and extract as much of my money as possible in order to buy the next. I think this is a fairly standard route but I have come across a stumbling block I can't seem to find an answer to either in the books I've read, or on this forum.

My intention would be to refinance and extract the money as soon as feasible, but I can't seem to find a BTL mortgage with a term of shorter than 5 years. I'm sure there are probably some out there with terms down to 2 or 3 years, similar to residential mortgages. But that still leaves me with the same issue. Do I have to wait until the term expires or just suck up the charges associated with refinancing inside your term? Or, in fact, do most people stick with variable rates and then refinance onto a fixed rate?

Sorry if this question is a bit verbose, something of a stream of consciousness!

Thanks in advance for your help.


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  • 3 weeks later...

Good afternoon Ally,

There are short term products available with no early repayment charges, which you could use if you are only modernising/updating the property...but the majority of lenders do not allowed works to be carried out to the property during the term of the mortgage, which is why people will utilise bridging/development finance whilst the works are carried out. 

If you would like to talk through your options in more detail, then I would be happy to arrange a conversation. I regularly work with financing refurbishment projects, development sites, etc. 

Best regards 

Nathan Cole

Nathan Cole CII (MP)

Mortgage Consultant at Private Finance

Office: +44 (0)1743 211 855

Email: nathan.cole@privatefinance.co.uk

Website: www.privatefinance.co.uk


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