Mortgages
Explore refurbishment loans of up to 100% LTV, we work with short term lenders that provide funding to both the purchase and refurbishment.
Speak to a Mortgage Lane adviser about your options.
In short
Refurbishment funding sits between a mortgage, a bridging loan and development finance, and the scope of works, the property's condition at the outset and the planned exit decide which of the three routes fits.
Refurbishment finance sits between standard mortgages, bridging loans, and development finance, so selecting the right funding route is essential from the start. The property condition, scope of works, timescale, valuation approach, and exit strategy all affect which lenders and products are suitable.
We assess refurbishment funding options across the market, including bridging, refurbishment mortgages, and development finance, to identify the most appropriate structure for the case. Correct lender matching helps reduce delay, avoid unnecessary cost, and align the funding with both the works programme and the intended exit.
| Option | When it fits |
|---|---|
| Bridging loans | For unhabitable purchases |
| Further advances | For capital raising mid mortgage-term |
| Development finance | For heavy renovations or developments, works funded |
| Renovation mortgages | For purchases requiring light to medium renovation |
| Bridge to Let | For light to medium refurbs, with a guaranteed exit |
| Re-mortgages | For capital raising, existing lender won’t offer further advance |
| Second charges | For capital raising to avoid exit charges |
01
The first stage of your refurbishment loan application involves gathering or updating key details about the property, any tenants, and your personal circumstances. Once this information is established, your refurbishment loan broker will recommend the most suitable funding option.
02
Once you are satisfied with the recommended product and confirm you wish to proceed, the case is usually submitted the same day to obtain a decision. Up to this point, no fees are payable. If an Agreement in Principle (AIP) is approved, the application can progress to full submission, at which point lender fees become due.
03
Once the application is submitted, the valuation is arranged and, in most cases, instructed after initial underwriting has been completed, depending on the lender. When the valuation is returned and deemed acceptable, the lender can issue a formal offer, allowing the case to progress to the legal stage.
04
Once your refurbishment loan offer has been issued, you will require appropriate legal advice. When all legal requirements are satisfied, your solicitor can draw down the funds. Your broker at Mortgage Lane will continue to monitor the application post-offer, liaising with all parties to help progress the case through to completion.
| 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 |
| Feature | Detail |
|---|---|
| Day one max LTV | 75% LTV |
| Product fee | 2% Arrangement fee |
| Rate | From 0.72% per month |
| Feature | Detail |
|---|---|
| LTV | 75% LTV |
| Product Fee | £999 Flat Product Fee |
| Rate | 3.85% |
| Fixed Term | 5 years |
Flexible refurbishment loan options to suit different property conditions, budgets, and timelines, from light refurbishments to major renovation and development projects.
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.
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Development finance can support refurbishment involving structural works, extensions or major alterations. Read how it can cover acquisition and build costs for these projects.
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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.
Read more about Home refurbishment mortgagesGet in touch about Home refurbishment mortgages
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.
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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.
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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.
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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.
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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.
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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.
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Renovation mortgages are designed for purchasing residential properties that are currently uninhabitable or in poor condition and require light to medium refurbishment. They provide a structured form of long-term funding that can cover both the property purchase and the cost of essential works, making them a strategic and lower-risk alternative to short-term bridging finance in the UK.
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.
Hotel bridging loans to buy, refurbish or convert a hotel: trading and vacant possession values, auction timetables and the exit to a hotel mortgage.
Yes, you can obtain a higher mortgage to fund refurbishment if the lender agrees the property will support the increased loan based on its current or projected value. This is typically arranged through a further advance, remortgage, or refurbishment mortgage, subject to affordability and loan-to-value limits.
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 renovation loan works by advancing money secured against a property to fund improvements. The lender assesses income, credit profile, and property value, and may release funds in stages. Repayments are made monthly with interest over an agreed term.
You can obtain a renovation loan by applying for a further advance, remortgage, second charge mortgage, or specialist refurbishment product. Approval depends on income affordability, credit status, loan-to-value ratio, and confirmation that the proposed works meet lender criteria.
A loan for house renovation is obtained by applying for a mortgage further advance, remortgage, second charge mortgage, or personal loan. Lenders require proof of income, credit assessment, and details of the renovation costs before approving funds.
Yes, a house can be renovated using mortgage funds if the lender permits it. Minor works are usually acceptable under a standard residential mortgage, but major structural renovations may require a refurbishment mortgage or stage-release product with specific underwriting conditions.
A home renovation loan provides funds for property improvements, either as a lump sum or in stages. The lender assesses affordability and loan-to-value, and interest is charged on the borrowed amount. Some products release funds only after works are completed or inspected.
To apply for a home renovation loan, you submit an application to a lender with income evidence, bank statements, details of existing debts, and a schedule of works with cost estimates. The lender conducts affordability checks and a property valuation before issuing an offer.
To get a loan for home renovation, approach a regulated lender and apply for either a secured or unsecured product. The lender assesses affordability, credit history, and property value. Larger sums are typically secured against the property.
A renovation loan is a finance product used to fund property improvements. In the UK, it may be structured as a further advance, remortgage, second charge mortgage, or specialist refurbishment mortgage secured against the property.
A bridging loan is not dangerous in itself, but it carries more risk than a standard mortgage if it is used without a workable plan. Bridging loans are short-term, high-cost loans that rely on a clear, achievable exit such as a sale or refinance, and the risk increases if the exit fails, the term is exceeded or the costs are misunderstood.
Some are. A bridging loan is regulated by the FCA when it is secured on a property that is, or will become, the borrower's main residence: in law, where at least 40% of the property is used, or is intended to be used, as a dwelling by the borrower or a close family member. Bridging loans for buy-to-let, investment, commercial property or land are usually unregulated.
Some bridging loans are regulated by the FCA. A bridging loan is FCA-regulated if it is secured against the borrower's main residence or a property intended to become their main home; the legal test is that at least 40% of the property is used, or is intended to be used, as a dwelling by the borrower or a close family member. Bridging loans for buy-to-let, commercial property, land or investment purposes are usually unregulated.
Yes, bridging loans are still available in the UK. They are provided by specialist lenders and some challenger banks, and are commonly used for short-term property finance, including auctions, chain breaks, refurbishment, and commercial or investment purchases where speed and flexibility are required.
Yes, renovation mortgages are available in the UK for fixer-upper properties, although the options are limited. They are usually specialist renovation or self-build style products that release funds in stages. If the property is uninhabitable at purchase, bridging finance is often used first, followed by a mortgage once the works are complete.
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