Mortgage guide
Refurbishment Loans: detailed guide
Explore refurbishment loans of up to 100% LTV, we work with short term lenders that provide funding to both the purchase and refurbishment.
- Published
- 4 Aug 2026
- Last reviewed
- 8 Oct 2026
- Reading time
- 4 min
Bridging loans for refurbishment finance
For property investors focused on purchases involving light refurbishment, enhanced bridging loans are one of the most effective funding solutions available. They are particularly well suited to acquisition-led strategies, including property flips and Buy, Refurbish, Refinance (BRR) models, where speed of purchase and execution is critical.
Development finance for refurbishment finance
Development finance can support refurbishment involving structural works, extensions or major alterations. Read how it can cover acquisition and build costs for these projects.
Read more about Development finance for refurbishment finance
Home refurbishment mortgages
Second charge mortgages allow additional borrowing without disturbing an existing mortgage, making them suitable where early repayment charges apply or the current mortgage rate is favourable.
Bridging calculator
Further advances for refurbishment finance
A further advance allows you to borrow additional funds from your existing mortgage lender to finance home improvements or refurbishment works. It is often one of the most straightforward and cost-effective ways to raise capital, as it avoids changing lender and usually carries lower rates than short-term finance.
Second charges for home refurbishment loan
A second charge mortgage is a flexible way to raise funds for refurbishment works without altering your existing mortgage. It is a separate loan secured against the same property, ranking behind the first mortgage on the title, and is commonly used where speed, flexibility, or preservation of an existing mortgage deal is important.
Refurbishment mortgages for buy to let
A buy-to-let refurbishment mortgage is designed for investors purchasing a property that requires renovation, allowing them to complete the acquisition on a mortgage rather than relying on short-term bridging finance. This structure enables borrowers to move straight onto a longer-term mortgage product at purchase, even where the property is not yet suitable for immediate letting, reducing refinance and timing risk.
Commercial refurbishment loans
Commercial refurbishment loans enable borrowers to add value through reconfiguration, improve rental yields, enhance tenant appeal, or create more flexible commercial layouts. For business owners, they can support operational growth by upgrading or adapting premises without needing to relocate.
Bridge to Let Refurbishment Loans
A Bridge to Let refurbishment loan is designed for property investors using a flip or BRR (Buy, Refurbish, Refinance) strategy who want the speed of bridging finance with the certainty of a pre-agreed buy-to-let exit. It reduces refinance risk by assessing the long-term mortgage outcome at the outset, subject to a satisfactory post-works reinspection.
Re-mortgage for refurbishment loan
A remortgage for refurbishment allows homeowners or landlords to fund renovation works by switching to a new mortgage product and releasing equity from their property. It is a cost-effective option where the property is already mortgageable and the refurbishment is planned rather than urgent.
Refurbishment 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 |
|---|---|
| Max LTV | Up to 100% LTV with additional security |
| Works to be funded | Up to 100%, in arrears |
| Max LTV: further advances | 95% Residential / 85% Buy to Let |
| Minimum loan | £25,001 |
| Interest options | Interest only, capital repayment |
| Funding purposes | Conversions, extensions, light and heavy refurbishments |
| Planning notes | Full planning or permitted developments |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| Day one max LTV | 75% LTV |
| Product fee | 2% Arrangement fee |
| Rate | From 0.72% per month |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| LTV | 75% LTV |
| Product Fee | £999 Flat Product Fee |
| Rate | 3.85% |
| Fixed Term | 5 years |
Related case studies
Frequently asked questions
What is a heavy refurbishment bridge?
A heavy refurbishment bridge funds structural works such as extensions, layout changes or conversions that need planning or building regulations approval. Larger schemes may suit development finance. Lenders look closely at contractors, costs and the programme.
What is a light refurbishment bridge?
A light refurbishment bridge funds cosmetic and non-structural work — kitchens, bathrooms, decoration, flooring — usually without planning or building regulations approval, alongside the purchase. Terms are usually simpler than for heavier works.
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.
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.
What evidence do I need to remortgage after refurbishment?
Provide a schedule of works with invoices and photographs, building control completion certificates, an electrical installation condition report, a gas safety record for let property and an updated Energy Performance Certificate (EPC). Add any planning permission or house in multiple occupation (HMO) licence and, for buy to let, a tenancy agreement or a letting agent's rental valuation. A let home in England or Wales needs at least EPC band E (gov.uk: minimum energy efficiency standard), and in England landlords must have the electrics checked at least every five years (gov.uk: electrical safety standards).
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