Property refurbishment finance and refurbishment loans
Bridging-style finance for refurb projects, funding the purchase and the works against end value. Light and heavy refurb through 100+ lenders, indicative terms in 48 to 72 hours, completion in 10 to 21 days.
You have found a property worth buying. It is tired, maybe unmortgageable, and the numbers work only if you fund the refurbishment work as well as the purchase. High-street lenders will not touch a property that fails a habitability check, and a standard mortgage will not release money for a kitchen that does not yet exist. A refurbishment bridging loan funds both halves and helps you fund your property against the finished value, not the value today.
We are a whole-of-market broker, not a lender. We arrange both light and structural refurbishment loans through a panel of 100+ lenders, then run a soft credit check with your consent first, so exploring your options never marks your file. There is no charge for indicative terms; our fee model is confirmed upfront before any application. Every rate, LTV and timescale here is indicative; the lender confirms on application.
Key facts
- Light refurbishment 0.65 to 0.95% a month up to 75% of value; a structural project 0.85 to 1.10% a month up to 70% of value plus up to 100% of refurbishment costs in tranches
- Lends against projected end value, with the budget released in tranches as a surveyor signs off each stage
- Indicative terms in 48 to 72 hours; completion in 10 to 21 days; 6 to 18 month terms
| Scenario | Indicative rate | LTV |
|---|---|---|
| Light refurb | 0.65–0.95%/mo | 75% |
| Heavy refurb | 0.85–1.10%/mo | 70% |
| HMO conversion | 0.85–1.10%/mo | 70% |
Cost calculator
Compare refurbishment routes by what you need
Refurbishment is not one product. Start with the angle that matches your deal.
Development finance
Funding for ground-up builds and larger schemes that go beyond a refurbishment.
Explore ›Buy-to-let mortgages
The usual exit on the BRRR route, cosmetic or structural alike.
Explore ›Auction finance
Fund a lot under the hammer, then roll into a new bridging loan for the refurb.
Explore ›Bridging cost tool
Model an indicative monthly cost for the works in seconds.
Explore ›Refurbishment finance explained, purchase to exit
Here is how refurbishment loans work. A normal mortgage lends against today’s value, so a high-street mortgage cannot fund a derelict shell or help you refurbish a property no one will mortgage yet. This short-term finance secured finance covers both the purchase and refurbishment against projected end value, letting you renovate a property mainstream lenders reject. As a form of property finance, this secured loan is interest-only and repaid through a planned exit, a refinance or a sale, with the budget released in tranches as each stage is verified.
The loan amount is sized against what the property will be worth once works are complete, not the value today. You borrow against the property once works are complete in value terms, while the cash arrives in stages as you spend it.
Light or heavy refurb, and which fits your property
This split decides the lenders and the pricing on any property refurbishment, and how the loans can be secured against the work.
- A light refurbishment loan covers cosmetic, non-structural work: kitchen, bathrooms, rewiring, redecoration. It advances up to 75% of the current value of the property.
- A structural project is heavy work, anything needing planning, or a change of use: extensions, loft conversions, splitting a house into flats, office to residential. It borrows up to 70% of value plus up to 100% of the build cost in tranches.
No structure and no planning, it is light; the moment any of the three enters, it is heavy. Whether your scheme is light or heavy refurbishment, we match the type of bridging finance to the work so you pay for the risk that is actually there.
Refurbishment finance rates and tranche release
Like all bridging loan rates, judge the cost of a refurbishment loan on the total over your actual hold, not the headline monthly figure. Light refurb runs 0.65 to 0.95% per month up to 75% of value; a heavy bridging loan runs 0.85 to 1.10% per month up to 70% of value plus 100% of the refurbishment work in tranches. Terms run 6 to 18 months, so investors weigh total cost across the hold.
On top of the monthly interest sits a lender arrangement fee of 1% to 2%, a RICS valuation fee and legal costs, all confirmed in writing before you commit. The bridging loan calculator on this site gives an indicative monthly figure in seconds. On a structural project the lender ties drawdown to your build programme and releases each tranche against progress, so finance options stay matched to the spend.
The BRRR strategy, recycling your capital
Buy, Refurbish, Refinance, Rent is the strategy this product is built for. You buy below post-works value, raise it, then loan repayment comes from refinancing the property onto a buy-to-let mortgage at the higher value, returning most of your cash to recycle. Buy at £150,000, spend £30,000, reach £230,000: a 75% refinance against the gross development value releases £172,500 and clears the bridging loan.
The plan to repay the loan is the point, so we stress-test it first. This is finance designed for property investors, the landlords and property developers who recycle capital deal after deal.
Permitted-development, HMO and change of use
Heavy refurbishment finance funds projects mainstream lenders avoid, where the planning use changes as part of the works.
- Permitted-development conversions. Office to residential, agricultural to dwelling, commercial properties to flats under PD rights.
- HMO conversions. Convert a property before letting into a licensed house in multiple occupation, for the higher yield.
- Change of use. Any refurbishment project where the property’s planning use changes.
A structural project carries more moving parts, which is why a whole-of-market broker earns its place: mainstream banks decline the category, and we know which refurbishment finance lenders take this kind of bridging finance. Refurbishment finance for property like this is exactly where going direct costs you a deal.
How we stress-test your exit and repayment
Every refurbishment lender asks one question before they fund: how does this get repaid? A bridging loan with no realistic plan is a trap. The two common exits are a refurbishment mortgage at the new value, or the property is sold once works are complete. Some investors refurbish the property before letting or selling at the higher value; others raise the property before selling it on, or flip it.
On a refinance we check the projected value supports the term mortgage and the rent passes the stress test; on a sale, that the timeline fits your loan term. Because the loan is secured against the property, the exit, not your salary, is what the lender underwrites.
Choosing the right refurbishment loan with a broker
The property refurbishment loan that funds a cosmetic job rarely funds a structural HMO conversion or commercial refurbishment loans, so going direct gets you one appetite and one decision. As a specialist bridging loan broker for property developers who are looking to scale, we shop 100+ lenders, place your case with the one most likely to fund it first time, then push the valuer and solicitor.
Most of the bridging loan cases we arrange are used by property investors moving from purchase a property to refinance in one cycle. This is information, not regulated advice; a qualified adviser confirms the regulatory position of your case.
Common worries about refurb finance, answered straight
Is this expensive? +
What if my build runs over? +
I have been turned down before. +
When refurbishment finance fits
Buy below post-works value, add value, then refinance onto a term buy-to-let and recycle your capital.
Non-structural work: kitchens, bathrooms, rewiring, redecoration.
Structural work, extensions, loft conversions or splitting a house into flats.
Turn a family home into a licensed house in multiple occupation for the higher yield.
Office-to-residential and similar PD schemes mainstream banks decline.
Buy a shell that fails a habitability check, refurbish, then refinance onto a normal mortgage.
Refurbishment finance questions, answered
What does refurbishment finance suit, and how much can I borrow? +
The property is unmortgageable right now. Can I still buy it? +
How does refurbishment finance compare with development finance? +
How fast can it complete? +
Get indicative refurbishment terms in 48 to 72 hours
Tell us the property, the loan size, the works budget and your exit plan, and a broker comes back with indicative terms from suitable lenders inside 48 to 72 hours. No fee to find out, no credit-file impact from a quote, no commitment until you submit.