Refurbishment
7 min read
Updated 2026-01-03
Refurbishment Bridging Loans Guide
Refurbishment bridging loans fund both the purchase and renovation of a property. They're essential for investors who buy properties that need work before they can be mortgaged or sold at full value.
Light Refurb vs Heavy Refurb
Light Refurbishment
Cosmetic improvements that don't require planning permission or building regulations:
- New kitchen and bathroom
- Redecoration throughout
- New flooring and carpets
- Garden landscaping
- Typically £10,000-50,000 works
Rates from: 0.49%/month | LTV: Up to 75% of purchase price
Heavy Refurbishment
Structural changes requiring planning permission or building control:
- Extensions and conversions
- Structural alterations
- Change of use (commercial to residential)
- Full property renovation
- Typically £50,000+ works
Rates from: 0.65%/month | LTV: Up to 70% of GDV
How Refurb Drawdowns Work
For larger refurbs, lenders release funds in stages:
- Day 1 drawdown - Purchase price + initial works (e.g., 80%)
- Stage 2 - Released when first phase complete (verified by surveyor)
- Stage 3 - Final funds on practical completion
You only pay interest on funds actually drawn, saving money during the build phase.
Tip: Some lenders offer 100% of works costs if the day 1 LTV is low enough. This means you only need deposit for the purchase, not the refurb.
Planning a refurbishment project?
Compare refurb bridging rates. Get funding for purchase and works in one loan.
Compare Refurb Finance