| Light refurb | Cosmetic, non-structural works, usually no planning needed |
|---|---|
| Heavy refurb | Structural work, change of use or planning-led works |
| Typical loan | Up to around 70–75% of purchase value; some lenders consider end value |
| Works funding | Often released in stages after monitoring visits |
| Term | Typically 6 to 18 months |
| Repaid by | Refinance at the new value, or sale |
Light vs heavy refurbishment
- Light refurbishment: new kitchen and bathroom, decoration, rewiring, windows, flooring. Usually no planning permission or structural work.
- Heavy refurbishment: structural alterations, extensions, loft conversions, HMO conversions or change of use. Often needs planning or building regulations approval and an experienced contractor.
Larger ground-up schemes usually need development finance instead.
What lenders want to see
- A schedule of works with costings, ideally contractor quotes
- A realistic timetable with contingency
- Any planning permission, building regulations and licensing (for example HMO licensing)
- Your experience, or that of your contractor and professional team
- Evidence for the expected end value, such as local sold prices
- A clear exit: the mortgage or sale that will repay the loan
Refinancing after the works
Once works are complete, the property is revalued. A higher value can let you refinance onto a buy-to-let, HMO or residential mortgage and repay the bridge. Some lenders have a minimum ownership period before they will lend on the new value, so we check your exit lender at the start. Valuations are never guaranteed, so build a margin into your plan in case the end value comes in lower.
Check your dealIndicative borrowing, total cost and the questions a lender will ask, in about two minutes.
Open the deal checkerExample cases
Illustrative examples based on the type of case we arrange. Not specific clients; every case is different.
£255,000 HMO refinance at 75% LTV after converting a family house in Coventry
£595,000 bridging loan at 70% LTV to buy and extend a short-lease Kensington flat
Frequently asked questions
Can I get a bridging loan for refurbishment?
Yes. Refurbishment bridging funds the purchase and often the works on a property that is not yet mortgageable. It is repaid by refinancing onto a mortgage after the works, or by selling.
Will a lender fund the cost of the works?
Many will, usually releasing works funding in stages after a surveyor confirms progress. You normally fund the first stage yourself and draw down as works are completed.
Can I borrow against the value after works?
Some lenders consider the expected end value, particularly for heavier projects with planning in place. Lending is still capped by the purchase price, costs and the lender's risk appetite.
How long do I have to own a property before refinancing?
It depends on the mortgage lender. Some will refinance on the new value soon after works are complete; others have a minimum ownership period. We check this at the start so the exit works.
Can I convert a house to an HMO with bridging?
Yes, this is a common use. Lenders will want planning and licensing in order, a costed schedule of works and a realistic HMO mortgage exit.
Important: Bridging and development finance are short-term, secured borrowing and can be expensive. You need a clear, realistic exit plan. Loans secured on a home you live in may be FCA-regulated; most others are not. Your property may be repossessed if you do not keep up repayments.