"It’s another example of how we’re building a bridging proposition that not only adapts to investor needs but actively empowers them to move quickly, stay in control of their funding, and maximise returns in a competitive market"
- Anna Lewis - Castle Trust Bank
Castle Trust Bank has announced that it has expanded its bridging offering with a new Light Refurbishment product featuring a drawdown facility.
The product is aimed at developments under Permitted Development Rights (PDR), conversions into smaller HMOs, reconfigurations, and smaller-scale renovations such as rewiring, new kitchens, and bathrooms.
It allows borrowers to access funds in staged drawdowns, paying interest only on the amounts they draw. This can reduce overall borrowing costs while supporting efficient cashflow management.
The Light Refurbishment with Drawdowns product is available for projects with a maximum works cost of £500,000, with each drawdown requiring a minimum of £25,000. The facility can be used up to 75% Net LTV and includes the option for Below Market Value (BMV) purchases.
This addition builds on the success of Castle Trust’s Heavy Refurbishment with Drawdowns product, launched in 2023. That product has proved popular with brokers and clients seeking to align fund release with project stages and cashflow needs.
“We’ve already seen a strong demand from brokers and investors for a drawdown facility on Heavy Refurbishment projects, where clients want to manage their cashflow more efficiently and avoid paying interest on undrawn funds,” said Anna Lewis, commercial director at Castle Trust Bank. “But the efficient use of capital doesn’t need to be contained to larger schemes, and our new Light Refurbishment with Drawdowns product gives investors the flexibility to take on a wider range of projects, with the confidence that they can draw on the funding they need, when they need it.
“It’s another example of how we’re building a bridging proposition that not only adapts to investor needs but actively empowers them to move quickly, stay in control of their funding, and maximise returns in a competitive market.”
