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Refurbishment mortgages

Interested in refurbishing a property?

  • It might be that you’re thinking about undergoing some refurbishments on an investment property before renting it out.
  • Or, maybe you’re looking into investment properties that you can refurbish and sell on for a profit.
  • Whatever the reason, our refurbishment bridging options are here to support you!
  • To learn more about the options available to you, call our qualified advisors on 0800 032 3535 or send us an email to enquire.
  • Before getting a loan, it is important that you have a clear exit strategy in place to repay the loan at the end of the term, whether you are selling your property or moving to alternative finance.

Any property used as security, which may include your home, may be repossessed if you do not keep up repayments on your mortgage.

Refurbishment mortgages

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What is a refurbishment mortgage?


A refurbishment mortgage is a type of borrowing solution that helps you cover the costs of property refurbishments.  

These solutions can be used on properties that you’re planning to rent out or if you’re wanting to sell it on to another person for a profit.

It doesn’t matter whether the works are light or heavy, there are solutions available for both types.

We have a number of different lenders available who are able to support you if you’re looking into property refurbishments.

Our options have a variety of interest rates, flexible repayment terms and features, so it is highly possible that we have a solution that fits your needs.  

How do refurbishment mortgages work?


Essentially, these solutions are bridging loans. A bridging loan is a short-term borrowing option that can help you fund different plans until you have organised a longer term finance option.

With a short-term borrowing solution like this, you will not make any monthly repayments. Instead, you will be required to pay the loan in full when the term comes to an end.

For example, if you have taken out a loan for 12 months, you will be expected to repay the full amount at the end of that period. Due to this, it is vitally important that you have a clear exit plan in place to repay the loan. This could be taking out additional finance, remortaging or selling your property.

Over the years we have helped many people access refurbishment bridging loans, so our team is experienced in handling these types of cases. Our experts are therefore equipped with the skills and knowledge to assist with your enquiry.

What are the different types of refurbishment mortgages?


There are different types of refurbishments you may carry out on your property. Projects can fall under two main categories known as light or heavy, which are distinguished by their size and costs.

Light refurbishments–As the name suggests, these are projects which are typically smaller scale and will therefore cost less money. Lenders will consider a refurbishment to be light if it costs lower than 15% of the house’s value. Usually, these projects are non-structural changes which might include: painting, replacing windows, rewiring and other low cost cosmetic upgrades.  If you’re thinking about engaging in these types of projects, you would need to look into light refurbishment mortgages.

Heavy refurbishments– Projects that are larger in size and cost more than 15% of the property’s value are classified as heavy refurbishments. These are usually projects that involve structural changes and therefore may need planning permission, such as an extension. If you’re interested in making large structural changes to your property, you may need to consider getting a heavy refurbishment mortgage.

Our experts can assist with both types of property projects, so they can give you the support you need regardless of the size of your plans.

Are refurbishment loans hard to get?


Generally speaking, it isn’t difficult to get one of these loans. There are many different products in the market, which means there is likely to be a solution that fits your circumstances. 

However, if you have any complex circumstances such as bad credit, it can be more challenging to get accepted. This is because it signals to lenders that you’ve struggled with your finances in the past and therefore you may have a greater chance of defaulting on future loans.

In addition, if you have no prior refurbishment experience, you may find it harder to get approved for these solutions. Having previous experience shows lenders that you’ve completed property projects before and therefore are more likely to finish the works. Due to this, if you have no experience lenders may be a bit more hesitant about letting you borrow, as they have no solid proof that you will finish the project and be able to repay the loan. Despite this, it is still entirely possible to get accepted with no experience.

Another factor that can make it difficult to get accepted is if you don’t have a clear repayment plan ready. Most lenders will not approve your application without seeing your repayment strategy, as otherwise they have no assurances that you will repay the amount borrowed.

One of the best ways to understand what options are available to you is by speaking with a mortgage broker, as they can give you a good steer on which products are right for you.

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How much can I borrow with a refurbishment loan?


Loan sizes can vary from lender to lender, so it does partly depend on the provider you go with.

When determining how much to let you borrow, lenders may assess a few different factors. One of these is the predicted value of the property after the works have finished. This is because many people’s exit strategy is by remortgaging or selling their property and using the proceeds to repay the loan. The estimated value of the property can therefore inform lenders on how much you would be able to repay, and so it is a crucial factor when determining a suitable loan size.

Lenders always want to make sure that you can comfortably repay the amount you borrowed, and so they will assess these factors carefully. It’s therefore important that you work with your lender and provide them with any documents they may need, to help inform their decision making.

What is a title split?


A title split is where you separate the deeds of a property. This means that it will be split into different properties, rather than being one single building.

Many people look into this strategy to enhance the number of properties in their portfolio, in order to increase their return on investment.

Another reason why title splitting may be used is if a person has a section of land on their property that they would like to sell or transfer over to another individual. 

Title splits and refurbishments can be related, as you may find yourself in a situation where you have bought a house that you want to refurbish and split the title deeds of it at a similar time.

Our experts can assist with any of your title splitting and refurbishment needs. We have a range of lenders who are more than happy to help in these situations.

Frequently Asked Questions - Refurbishment Mortgages


Can you get a mortgage to cover renovations UK?

Yes, you absolutely can get a mortgage to cover the costs of property renovations.

A solution that could help you in this situation is a refurbishment bridging loan, which focuses on helping people who need support funding works on their properties.

How do you fund a renovation project?

There are a range of different solutions you could use to fund home renovations and refurbishments, including first and second charge mortgages, refurbishment bridging loans and unsecured loans.

It’s important that you consider each option carefully to determine which solution is best aligned to your needs and circumstances. Speaking with an advisor could help to speed up this process and may help you to make the best decision for your specific situation.

Is renovating and refurbishing a good investment?

Renovating a property can be a really worthwhile investment for a number of reasons including:

  • May raise the value of your property
  • Can make the property more comfortable to live in
  • Could improve the efficiency of the property if the renovations involve updating insulation or window glazing

Although these are great benefits, whether it’s a good investment or not is for you to judge. It really depends on what the renovations are and what needs you are hoping to satisfy by completing them.  If the renovations satisfy a particular need, it could be seen as a positive investment.

What home renovations and refurbishments add the most value?

There are a range of different renovations you can engage in, which will all have a different impact on the value of your property.

Some refurbishments could increase your property value more than others. For example, converting a cellar can raise your property value by 30%, whereas adding a conservatory might only increase it by 10%. 

If you’re wanting to refurbish a property to boost its value, it is worth researching the different options carefully.

What interest rate might I get on a refurbishment loan?

The type of interest rate you are eligible for will be up to the lender that you go with. Lenders usually take a few different factors into consideration, to determine how much of a risk it is lending to you. Once they have determined this, a suitable interest rate will be decided.

Generally, the lower the risk to the lender, the better the interest rate you will get. On the other hand, if you are a greater financial risk to the provider, you are more likely to be charged a higher interest rate.

What borrowing terms are available on refurbishment finance?

These loans are taken out over a short-time frame, as they are intended to help you until you have got longer-term finance in place.

We have lenders who have financial solutions that can last up to 3 years, giving you the flexibility to fund the works and organise a suitable repayment plan.

Do you need experience to get a property refurbishment loan?

No, it’s not a requirement to have experience to get one of these loans. However, if you don’t have any experience, it may be a bit more challenging to get accepted. Due to this, you may need to speak with a specialist mortgage provider, as they will know which lenders are likely to accept you.

Can I still get accepted for refurbishment finance if I have bad credit?

Yes, it’s still possible to get one of these loans even if you have bad credit.

Although this is positive, it’s important to note that the deals available to you may not be the most competitive, as the options available may be reduced.

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