Mortgage guide
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.
A home refurbishment mortgage allows homeowners to fund improvement or renovation works using structured mortgage finance rather than relying solely on short-term borrowing. The most suitable funding route depends on urgency, property condition, loan size, and exit strategy, particularly whether the intention is to sell, refinance, or hold long term.
Bridging finance can be arranged at loan-to-values of up to 85%, subject to lender criteria. It is most suitable where funding is required at purchase or where the exit strategy is a sale or refinance once works are completed. Bridging is commonly used for auction purchases, chain breaks, or where a property is temporarily un-mortgageable.
Refurbishment mortgages can also be available at up to 85% LTV, depending on the lender and scope of works. These are typically better suited to less urgent purchases or refinance-led renovations, covering light to heavy non-structural works while allowing borrowers to remain on a longer-term mortgage product from the outset.
Further advances allow additional borrowing from an existing lender, often at competitive rates. This option suits planned refurbishments where sufficient equity is available and no change to the main mortgage is required.
Re-mortgaging enables homeowners to release equity while switching lenders. This is commonly used for larger refurbishment projects where timing is flexible and long-term cost efficiency is important.
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.
Selecting the correct refurbishment funding depends on speed, loan-to-value, and exit strategy. Bridging finance suits urgent purchases and defined exits, while refurbishment mortgages and equity-based options up to 85% LTV are typically more appropriate for planned renovations and long-term ownership under UK lending standards.
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 |
To obtain a home renovation loan in the UK, you apply either for a further advance, remortgage, secured loan, or specialist refurbishment mortgage. Lenders assess affordability, credit history, property value, and the cost and scope of works before approving funds.
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.
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.
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.
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.
Speak to a Mortgage Lane adviser about your circumstances and the next steps.
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