The right mortgage for you depends on many factors, including your budget, credit score, life stage, deposit size, the type of property you’re buying and
The right mortgage for you depends on many factors, including your budget, credit score, life stage, deposit size, the type of property you’re buying and
Refurbishment Finance is a type of short-term loan used to refurbish a property.
We secure the right refurbishment finance to suit your unique needs.
With over 500 five-star reviews, our expert mortgage and insurance brokers provide top-tier service, ensuring you get the best funding options for your project.
As a whole-of-market brokerage, we have access to thousands of products, helping you find the ideal solution to finance your refurbishment.
Our streamlined process makes securing finance simple and stress-free, so you can focus on transforming your property with confidence.
Refurbishment finance is a loan solely used to buy a property and carry out any light or heavy refurbishment work that needs to be done. Usually, lenders will release the funds required in two stages. The first is released at the point of purchase and the second is released once the work has been carried out on the property. Â
This type of finance is designed for property investors who are looking to refurbish or convert a property before letting or selling it on. Depending on the type of refurbishment requirement you can either apply for a ‘light’ or ‘heavy’ refurbishment mortgage. Â
Â
What Are The Benefits?
A refurbishment finance loan is a flexible option for developers and landlords as it allows them to make both structural and non structural changes to the property.
This type of short-term financing provides developers and landlords to find the purchase and the renovations needed on the property in a short space of time.Â
The value of your property could increase significantly once the building work has been carried out.
What Are The Risks?
Refurbishment finance is only a short-term loan to bridge the gap between the cost of renovating the property and the mortgage.
You will need to create an exit strategy for when the loan period comes to an end to either refinance the property onto a buy-to-let mortgage or sell the home.
You will need to provide a detailed list to the chosen lender on the costs of the renovations, overall timescales and the estimated projected value of the home once the work has been carried out. Â
First, you’ll need to figure out how much you want to borrow and for how long. The amount you can borrow will be dependent on a wide range of factors.Â
A mortgage advisor can provide expert advice regarding the market and refurbishment rates which can help you to achieve a suitable rate. At UKMC, we’ve helped many customers to access exclusive rates and deals.
We’ll work to secure a loan against the property. Lenders will want to ensure you have a clear exit plan that illustrates how and when you’ll repay the loan. You may want to work with an accountant and broker to help determine how the schedule looks.
The amount you can borrow using bridging refurbishment finance depends on a range of factors and each lender will have their own affordability criteria. However, lenders will usually consider loans from £25K up to £50m
Whilst you don’t need a perfect score to secure a refurbishment loan, the higher your credit score does increase your chances and options.  Â
There are a range of specialist lenders for borrowers with low credit scores although these types of deals may incur higher rates. Â
By contacting a member of our advice team, you’ll be able to understand your affordability and talk through any concerns you may have over your credit history.Â
The work you can carry out on the property will be outlined by your chosen lender. However, as a general rule here are some examples of works that could be carried out:Â
Light refurbishment loans cover minor work without needing permission or experience, while heavy refurbishment loans involve structural changes, require approvals, and need experienced contractors.Â
UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.Â
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.Â
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
Registered company number: 15825320
