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.
Frequently asked
Request indicative terms
Four details are all a lender needs to price a case: how much, what secures it, when you need it and how it is repaid. Send those and we come back with realistic terms — or tell you plainly that the case will not place.
Request indicative terms
Tell us the four things every lender asks first. We come back with realistic terms, usually the same working day.