Refurbishment Bridging Loan
A refurbishment bridging loan is short-term, interest-rolled funding used to buy or release equity from a property and pay for the works, repaid on sale or refinance once the property is finished and valued at its improved figure. Lenders typically advance up to 75% of the day-one purchase price plus 100% of the refurbishment cost in staged drawdowns, priced from roughly 0.65% per month, on terms of 6 to 18 months. Light refurbishment — no structural change, no planning — is the fastest and cheapest; heavy refurbishment involving structural work, extensions or a change of use is priced higher and underwritten against your build experience.
Criteria and pricing
What lenders on our panel will typically do on this product today.
- Day-one advance
- Up to 75% LTV of purchase price or current value
- Works funding
- Up to 100% of build cost, released in arrears in stages
- Maximum against end value
- Typically 70–75% of GDV
- Rate
- From ~0.65% pcm (light refurb); ~0.85–1.25% pcm (heavy refurb)
- Term
- 6–18 months
- Arrangement fee
- Typically 1–2% of the facility
- Interest treatment
- Rolled, retained or serviced
- Exit
- Sale, or refinance onto a BTL / term mortgage
- Security
- First charge; second charge considered case by case
Worked example — 3-bed terrace, light refurbishment
- Purchase price
- £300,000
- Day-one advance at 75%
- £225,000
- Refurbishment budget (100% funded, staged)
- £45,000
- Rate at 0.79% pcm, rolled over 9 months
- ≈ £19,200 interest
- Arrangement fee at 1.5%
- £4,050
- End value after works
- £420,000
- Total redemption at month 9
- ≈ £293,250
- Loan to end value at redemption
- ≈ 70%
Figures are typical UK market ranges as at 2026 and are indicative only — your terms depend on the asset, the exit and the lender we place the case with.
Who this works for — and who it does not
You are likely to qualify if
- UK individual, limited company or SPV borrower; overseas borrowers considered with UK security
- A defined works schedule and a costed budget, ideally with a contractor quote
- A credible exit — an agreed sale strategy or evidence you will qualify for the refinance
- Prior refurbishment or development experience for heavy refurb cases
- Deposit or equity of at least 25% of the day-one value
This is the wrong product if
- Owner-occupied homes you live in — a regulated bridge is a different product and route
- Projects with no exit other than 'hope the market rises'
- Works that need planning consent that has not yet been applied for, unless funded as land or development finance
- Borrowers wanting the works money released up front — drawdowns are in arrears against inspection
What actually happens, and when
- Day 0–1
Case review
We take the numbers — purchase price, works cost, end value and exit — and tell you whether it funds and roughly at what price.
- Day 2–4
Terms issued
We place the case with the two or three lenders whose criteria genuinely fit and come back with written indicative terms.
- Day 5–10
Valuation
Valuer inspects and reports on current value, works schedule and end value. This is the usual bottleneck — instruct early.
- Day 10–20
Legals and drawdown
Lender solicitor raises enquiries, your solicitor answers, funds release. Two to four weeks start to finish is normal; ten days is achievable on a clean case.