Mortgage guide
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.
- Published
- 4 Aug 2026
- Last reviewed
- 8 Oct 2026
- Reading time
- 2 min
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.
How a further advance works
Your existing lender reassesses the current value of the property and the level of available equity. If sufficient equity exists, the lender may approve additional borrowing to support refurbishment plans. The further advance is secured against the same property and usually runs alongside the existing mortgage, often on a separate interest rate and repayment schedule.
Maximum loan-to-value (LTV) limits
The amount available is driven by the lender’s maximum LTV policy and the overall risk profile:
Residential properties
Some lenders will allow further advances of up to 95% LTV, subject to affordability, credit profile, and the scope of works. This means borrowers may only need to retain as little as 5% equity after the advance, although higher LTVs are typically reserved for stronger cases.
Buy-to-let properties
For buy-to-let, further advances are more conservative, with most lenders capped at around 75% LTV. Affordability is assessed on rental income stress testing rather than personal income, and higher equity buffers are required due to investment risk.
Bridging calculator
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
Can I get a further advance on a large mortgage?
Yes, a further advance is possible on a large mortgage where the existing lender agrees to lend additional funds secured on the same property. A further advance is a separate loan on top of the existing mortgage, assessed against current affordability rules and the lender's maximum loan to value.
What is a further advance for home improvements?
A further advance is extra borrowing from the lender that already holds your mortgage, secured on the same home. Because it is usually set up as a separate part of the mortgage with its own rate and term, your main mortgage deal carries on unchanged and no early repayment charge arises on it. It suits a homeowner whose fixed rate still has time to run. The lender still checks affordability on the total borrowing and may revalue the home, and you are limited to that lender's products and loan to value limits.
Can I use a further advance for business purposes?
Some lenders allow existing borrowers a further advance for business purposes, lending the extra on a separate sub-account while the main mortgage keeps its rate. A further advance is assessed on your personal income in the same way as a remortgage, under the Financial Conduct Authority's (FCA) rules, and it is a regulated mortgage contract whatever the purpose. Lender policies on business purposes vary, so the purpose needs checking with the lender first. The rate on the new sub-account can differ from the rate on the existing one.
Should I remortgage or take a further advance?
Remortgaging usually suits you if your current deal is ending or a better rate is available elsewhere, and a further advance if your fixed rate still has time to run and leaving it would mean an early repayment charge. Compare the total cost of each route: the rate on the extra borrowing, any early repayment charge, product fees, and valuation and legal costs. A remortgage puts the whole mortgage on one new deal with any lender, while a further advance keeps your existing deal but limits you to your current lender's products and limits. Both are assessed for affordability on the new total. A second charge loan is a third option when your lender will not lend more.
What are the main differences between light and heavy refurbishment finance?
Light refurbishment finance funds non-structural works such as kitchens, bathrooms, and decoration and is typically provided via standard bridging loans. Heavy refurbishment finance covers structural alterations or major reconfiguration and usually requires development finance, with staged drawdowns and monitoring by a surveyor.
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