Written by: Ying Tan, Founder and Chief Executive, Dynamo
With a large number of landlords feeling the pinch, many are still unaware of the types of finance available to them for refurbishment costs.
A recent report from Interbay outlined that over a third (34%) of landlords use their personal savings to fund refurbishments. Additionally, 18 per cent of landlords funded their refurbishments using credit card debt or an overdraft. The research also analysed landlords who are planning to refurbish a property, with 32 per cent stating that they intended to rely on credit card and overdraft debt, while 31 per cent said they planned to use personal loans.
With many landlords feeling the pinch on the back of regulatory reforms and tax changes, it’s clear that keeping costs and outgoings as low as possible is fundamental to the profitability of all portfolios – large or small. However, when it comes down to the economics, it appears that a decent proportion – one in eight according to the report – is still unaware of the types of finance available for refurbishment purposes.
The buy-to-let market is a hugely competitive place incorporating a wide variety of lenders, and innovative products are emerging on a daily basis to cover a wealth of borrowing scenarios for landlords. The fact is that many landlords no longer need to rely on personal savings to finance property refurbishments. Viable alternatives are available if they know where to look. And this is where specialist support and advice can play a vital role in ensuring that landlords have access to the right finance options to meet their ever-changing needs. So what’s stopping you?
To find out more about your refurbishment options or advice, get in touch with your local branch.