Mortgage guide
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.
- Published
- 4 Aug 2026
- Last reviewed
- 8 Oct 2026
- Reading time
- 3 min
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.
Traditionally, buy-to-let lenders require a property to be fully habitable at completion. Refurbishment mortgage lenders take a more flexible approach by allowing lending on properties requiring improvement, provided the works are non-structural and clearly defined. At acquisition, borrowers can typically borrow up to 70% of the purchase price. Once the refurbishment is complete and a re-inspection valuation has been carried out, an additional advance may be released, usually up to 70% of the uplifted post-refurbishment value, subject to lender criteria and rental affordability.
Refurbishment mortgages do not fund the cost of the works themselves. Borrowers are expected to fund renovation costs from their own capital. Where funding of build costs or structural works is required, development finance is generally more appropriate.
These mortgages can support a range of works, including EPC upgrades to meet minimum energy efficiency standards, light cosmetic refurbishments such as redecoration, kitchens and bathrooms, and medium refurbishments involving non-structural internal alterations or compliance upgrades for rental use.
For buy-to-let investors, refurbishment mortgages provide a lower-risk, long-term financing solution from day one, avoiding the higher cost and exit risk associated with bridging loans while allowing the property to be improved and refinanced within a single mortgage structure under UK lending standards.
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 |
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Frequently asked questions
What is let to buy mortgage?
A let to buy mortgage is the buy to let mortgage a homeowner takes on their current home so they can keep it as a rental while buying a new main residence with a residential mortgage. The two applications run together: the let mortgage is assessed on the rent at the lender's interest cover ratio and stress rate, and the new residential mortgage on income, with the let mortgage's costs included in the affordability assessment. Keeping the old home usually means the new purchase pays the higher rates of stamp duty in England and Northern Ireland.
Which is cheaper, bridging or buy to let?
Buy to let is much cheaper to hold, with an annual rate and long term; bridging is charged monthly at a higher rate with fees each time. Bridging is worthwhile only for short periods where speed or condition justifies it.
What is a buy-to-let stress test?
A buy-to-let stress test measures whether the rental income covers the mortgage payment at an assumed interest rate. Because borrowing capacity moves with that assumed rate, a lender applying a lower stress rate will lend more against the same rent.
How is family buy to let assessed?
Family buy to let is assessed on your income and outgoings under the Financial Conduct Authority's affordability rules for regulated mortgages, rather than on a rental stress test. The lender must take full account of your income, your committed expenditure, including the mortgage on your own home and any loans or cards, and your household's essential spending, and allow for likely rate rises over at least five years unless the rate is fixed for five years or more (FCA Handbook: MCOB 11.6). Some lenders also take account of the rent your relative pays. On residential lending, in our experience lenders lend up to 5 times gross income less outgoings, and up to 6 times for professionals and on specialist products.
Can I change my home to buy to let?
Yes, you can change your home to buy to let by remortgaging onto a buy to let product, subject to rental stress testing, loan-to-value limits, and lender criteria. Some lenders may offer temporary consent to let instead.
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