Specialist mortgage provider BuildStore is offering a new loan which is designed for people renovating properties.
It says the loan will help borrowers get over initial cashflow problems.
Lenders will normally only release money for property improvements once work has been finished and inspected by a valuer.
The BuildStore home improvement mortgage will offer borrowers up to 95 per cent of the property value through Skipton Building Society and Lloyds TSB Scotland before the property has been renovated and then an additional 95 per cent of the costs of improvements.
The money will be released at the start of four separate stages during the improvements.
The first stage covers money used for demolition and roofing, the second installation of services, the third practical completion of rooms and the final amount covers installation of kitchens, bathrooms, doors and decoration.
Managing director Raymond Connor says: “We are keen to develop products which give intermediaries solution to their clients needs. The positive cashflow provided by our new loan will make it easier for their clients to afford to buy and improve a sub-standard property.”