Refurbishment loans up to 90% LTV

Refurbishment loans provide a flexible and effective way to purchase and improve property, supporting a wide range of strategies across residential, investment, and commercial assets. The most appropriate structure depends on whether the borrower is a home buyer or an investor, the scale of works, and the intended exit. Below is a clear breakdown of the main refurbishment finance options available.

1. Enhanced LTV Bridging Loans (Investment & BRR)

Enhanced LTV bridging loans are designed primarily for property investors using strategies such as property flipping or Buy, Refurbish, Refinance (BRR). These loans offer high leverage at purchase, allowing investors to minimise upfront cash while funding light refurbishment works.

For investment purchases, lending can reach up to 90% of the purchase price, with rates starting from around 0.69% per month (subject to market conditions). Light refurbishment costs, typically up to 10% of the purchase price or valuation, can often be included without the need for a quantity surveyor or asset manager, reducing complexity and professional costs. Completion is fast, commonly within 28 days, making this structure well suited to auction or time-sensitive purchases.

Key features:

• Up to 90% LTV for investment properties
• Light refurbishment funding included
• No quantity surveyor or asset manager required
• Fast completion, typically within 28 days

Note: This level of leverage is generally not available to owner-occupiers.

2. Residential Refurbishment Loans for Home Buyers

For home buyers purchasing a main residence, refurbishment lending is more conservative due to FCA regulation and consumer protection requirements. In these cases, bridging or refurbishment loans are typically capped at a maximum of 80% loan-to-value (LTV).

These loans are commonly used to buy un-mortgageable or non-standard homes, such as properties in poor condition or with low EPC ratings and fund works to make them suitable for long-term residential finance. Once the refurbishment is complete, the loan is usually repaid by refinancing onto a standard residential mortgage.

Typical uses include:

• Making a property habitable
• Improving EPC ratings
• Completing light to medium refurbishments prior to refinance

The focus is on suitability, affordability, and a clear refinance exit, rather than maximising leverage.

3. Refurbishment Mortgages

Refurbishment mortgages allow borrowers to purchase and renovate directly onto a mortgage product, rather than using bridging finance first. These are suitable where works are light to medium and the property can be made habitable quickly.

Lenders typically offer:

• Up to 70% of the purchase price initially
• A further advance or revaluation after works, up to 70% of the new value
• These products are often used for improving condition or energy efficiency, but they are slower and less flexible than bridging-led refurbishment solutions.

4. Commercial Refurbishment Loans

Commercial refurbishment loans are designed for commercial and mixed-use property, supporting a wide range of asset management and redevelopment strategies. They are commonly used for offices, retail units, industrial buildings, and change-of-use projects.

Typical structures include:

• Up to 75% of the purchase price
• Up to 100% of refurbishment costs, often released in stages

While prior experience is helpful, it is not always mandatory. The loan is assessed on the asset, works, and exit strategy, usually a commercial refinance or sale once value has been enhanced.

Choosing the Right Refurbishment Finance

• Investors can access higher leverage (up to 90%) through bridging-led refurbishment loans
• Home buyers are typically capped at 80% LTV and must meet regulated lending standards
• Commercial borrowers benefit from staged funding and flexible underwriting

Each refurbishment loan type is tailored to a specific use case. Where refurbishment costs are substantial or value creation is central to the strategy, more complex structures may fall under development finance, which can be explored separately.