Mortgage guide
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.
- Published
- 4 Aug 2026
- Last reviewed
- 8 Oct 2026
- Reading time
- 2 min
Re-mortgage for refurbishment loan
Remortgaging for Refurbishment Finance
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.
How remortgaging for refurbishment works
The new lender assesses the property’s current market value. If sufficient equity exists, a lump sum can be released at completion and used to fund refurbishment works, without the need for short-term finance.
Maximum loan-to-value (LTV) limits
Typical maximum LTVs are:
- Residential properties: up to 95% LTV, subject to affordability, credit profile, and property condition.
- Buy-to-let properties: up to 85% LTV, with affordability assessed using rental income stress testing.
- These limits can vary by lender and may be reduced where works are extensive or affect habitability.
Key underwriting considerations
Lenders may request details of the proposed refurbishment, particularly where works materially increase the property’s size or value. Provided the property remains acceptable security at completion, remortgaging is usually lower cost than bridging or short-term finance.
When a remortgage is suitable
Remortgaging is best suited to non-urgent refurbishment projects where timing is flexible and long-term cost efficiency is a priority. It offers predictable repayments, longer terms, and lower interest rates under UK lending standards.
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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 |
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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.
What is re-bridging?
Re-bridging is refinancing an existing bridging loan with a new bridging loan on the same property, usually from a different lender, to give the borrower more time to complete the original exit, such as a sale, a remortgage or the end of a development. The new loan repays the old one in full, including any rolled-up interest, exit fee and extension or default charges, and starts a new term with its own fees and interest. Because those costs are added to the debt, the loan to value rises with each re-bridge. It differs from an extension, which keeps the same loan with the same lender for longer, and from remortgaging, which moves the debt onto a term mortgage.
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).
How much can I re-mortgage my house for?
How much you can remortgage your house for depends on the property value, lender loan-to-value (LTV) limits, and your eligibility. In the UK, most residential remortgages are capped at 75-85% LTV, but up to 95% LTV may be available in limited cases. The final amount also depends on income, credit profile, and property type.
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