Mortgage guide
Refurbishment Loan Lenders and Adverse Credit
If you’re looking for a refurbishment loan to exit development funding and have a history of adverse credit, lenders may inquire about your options for remortgaging. This is part of their assessment to understand your exit strategy for the loan, especially if the plan involves refinancing the property after refurbishment.
- Published
- 13 Apr 2026
- Last reviewed
- 8 Oct 2026
- Reading time
- 2 min
Refurbishment Loan Lenders and Adverse Credit
If you’re looking for a refurbishment loan to exit development funding and have a history of adverse credit, lenders may inquire about your options for remortgaging. This is part of their assessment to understand your exit strategy for the loan, especially if the plan involves refinancing the property after refurbishment.
It is common for developers to run out of time on their development finance facility and might be looking for a “finish and exit” product, whilst these lenders are also happy with adverse credit for sale exits, they might not be so keen with adverse credit for remortgage exits. Finish and exit products are used for the remainder of the phase 2 works on a development, more information on this product can be found on our Development Exit page.
Developer exit products will fund up to 75% LTV against the value of the site, which in some cases could be 95% completed and therefore could be quite flexible.
Bridging calculator
Land bridging loan criteria
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Criteria | Detail |
|---|---|
| Borrowers | Personal, Ltd co, LLP, Trusts, Offshore Trusts |
| Repayment type | Interest only |
| Max Loan to Value (LTV) | 65% max |
| Term | Max 36 months |
| Minimum loan | £40,000 |
| Experience | Not required |
| Max applicants | 6 |
| Uses | Agricultural land, business use, self build, pre-planning |
Published indicative terms for the wider product category are shown for context. They are not a quote for the specific circumstances discussed in this guide.
| Loan to value | Rate |
|---|---|
| 65% LTV | 0.62% per month (2% lender fee) |
| 75% LTV | 0.72% per month (2% lender fee) |
| 85% LTV | 0.9% per month (2% lender fee) |
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Mortgage secured after an affordability appeal
- Area:
- West Midlands
- Loan size:
- £92,000
Frequently asked questions
Do bridging lenders check my credit?
Bridging lenders usually run a credit search, though some use a soft search at agreement in principle. Adverse credit is considered case by case because lenders focus on the security and exit.
Why are bridging lenders more flexible with bad credit?
Bridging lenders focus on the security and how the loan will be repaid, usually within months, so a strong property and a clear exit matter more than past credit problems. Mortgage lenders, lending for decades, rely more on credit history.
Can a bridging loan fund the refurbishment too?
Some bridging lenders fund refurbishment in stages, released after a monitoring surveyor confirms work is done, with the total capped by a percentage of the value after works. Others fund only the purchase.
Can I get a second charge bridging loan for property refurbishment?
Yes, you can obtain a second charge bridging loan for property refurbishment, provided there is sufficient equity after the first mortgage. Lenders assess combined loan-to-value, the scope of works, and a clear exit strategy, typically a refinance or sale once refurbishment is completed.
How can I quickly secure a bridging loan for property refurbishment?
You can secure a bridging loan quickly for refurbishment by using an asset-led lender, providing a clear exit strategy, and supplying a costed schedule of works. Speed is improved where lenders accept desktop or automated valuations, search indemnity insurance, and rolled-up interest, allowing completion within days rather than weeks.
Talk it through with an adviser
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