Refurbishment bridging loans
Short-term finance for cosmetic, non-structural works on a mixed-use property, with interest rolled up and an exit to a term mortgage or a sale once the works are done.
What a refurbishment bridging loan is
A refurbishment bridging loan funds light, cosmetic works on a property over a short period. Light refurbishment means non-structural work that does not need planning permission or building regulations approval: redecoration, new kitchens and bathrooms, rewiring, replumbing, new flooring and general modernisation. The loan completes quickly, funds the purchase and the works, and is repaid once the property is finished and either refinanced onto a term mortgage or sold.
It is the right tool for a mixed-use property that is tired or unmortgageable in its current state but will be lettable after a refresh. A high street term lender will not advance against a property that needs work, so a short bridge funds the gap. Interest is usually rolled up rather than paid monthly, which protects cashflow while the works are underway, and the facility is sized on the asset and the exit rather than on lengthy income underwriting.
We are a finance arranger and introducer, not a lender. Refurbishment bridging on property held for business or investment is unregulated lending, outside the FCA's regulated mortgage perimeter. Where an individual will occupy the residential element once works are complete, regulated rules can apply and we refer those cases to a regulated firm.
- Funds cosmetic, non-structural works on a short bridge
- No planning permission or building regulations needed
- Indicative rate of about 0.70 to 0.95 percent a month
- Up to 70 to 75 percent of value, interest usually rolled up
- Exit to a term mortgage or a sale once works are done
Indicative terms
- Loan to valueUp to 70 to 75% of value
- RateAbout 0.70 to 0.95% a month (indicative)
- TermTypically 3 to 12 months
- InterestUsually rolled up or retained
- ExitTerm refinance or sale
- WorksCosmetic, non-structural only
Indicative only. Terms vary by lender, property and borrower and are not an offer of finance.
Who it suits
- Investors modernising a mixed-use property to let
- Buyers of a tired property a term lender will not fund
- Landlords refreshing a flat above a shop before letting
- Auction buyers funding a quick cosmetic upgrade
Discuss light refurbishment finance
A view on lenders and likely terms within one working day.
How a refurbishment bridge works
Confirm the works
We confirm the works are light and non-structural, with no planning or building regulations needed, which keeps the case simple and the lender list wide.
Size on value and exit
We size the bridge against the property value, up to 70 to 75 percent, with the works costs structured in, and confirm a credible exit before anything proceeds.
Complete and carry out works
The bridge completes quickly, you carry out the refurbishment, and interest is rolled up so there are no monthly payments to fund during the works.
Refinance or sell
Once the property is finished and lettable, the bridge is repaid by a term mortgage on the improved asset or by a sale.
Who can use a refurbishment bridging loan
Light refurbishment bridging is open to individuals, partnerships and limited companies, including a special purpose vehicle holding the property. Lenders care most about the value, the scope of works and the exit, so personal income matters less than on a term mortgage. A clear schedule of cosmetic works, a realistic budget and a credible plan to refinance or sell are what underwriters look for. First-time investors are fundable where the works are modest and the exit is sound, though experience helps on larger or tighter projects. The property does not need to be lettable today, since that is exactly what the bridge funds it to become.
How much you can borrow for light works
A refurbishment bridge advances up to 70 to 75 percent of the property's current value, with the cost of the works funded alongside, so you contribute a deposit or equity of 25 to 30 percent. Because the loan is short-term and asset-backed, it is sized on value and the exit rather than on stressed rental cover, which is why it completes far faster than a term mortgage. For a light refurbishment the works are usually funded as a single sum rather than staged, since the project is short and non-structural. On a 200,000 pound property, for example, the bridge would typically reach around 140,000 to 150,000 pounds plus the works.
Rates, fees and how a refurbishment bridge is priced
Light refurbishment bridging is priced monthly at around 0.70 to 0.95 percent a month, roughly 8.5 to 11 percent a year for mid-2026. Interest is commonly rolled up or retained rather than paid monthly, so nothing is due until the bridge is repaid. Expect an arrangement fee of around 1.5 to 2 percent, a valuation fee and legal costs on both sides. Bridging costs more than a term mortgage by design, so it is used for the works period and then refinanced promptly onto cheaper money. These figures are indicative and not an offer of finance.
Light against heavy refurbishment finance
Light refurbishment covers cosmetic, non-structural work with no planning or building regulations, funded simply and quickly as a short bridge with the works as a lump sum. Heavy refurbishment covers structural work, a change of use, or anything needing planning or building regulations, and is funded differently, against the day-one value plus a separate tranche for the works released in stages. If your project keeps the building's structure and use as they are and just modernises it, light refurbishment finance is the right and cheaper route. We confirm which bracket your works fall into before placing the case.
Light refurbishment finance: common questions
What is a refurbishment loan?
A refurbishment loan is short-term finance that funds the purchase and improvement of a property, repaid once the works are done by a term mortgage or a sale. A light refurbishment bridging loan covers cosmetic, non-structural work that needs no planning or building regulations.
Can you get a bridging loan to renovate a property?
Yes. A refurbishment bridging loan funds both the purchase and the renovation of a property that a term lender will not advance against in its current state. It lends up to 70 to 75 percent of value with the works funded alongside, and is repaid by a refinance or sale.
How much is a 200k bridging loan?
On a refurbishment bridge at around 0.70 to 0.95 percent a month, the interest on a 200,000 pound loan is roughly 1,400 to 1,900 pounds a month, usually rolled up rather than paid monthly. Add an arrangement fee of around 1.5 to 2 percent and the valuation and legal costs. These figures are indicative.
What is the best way to fund a renovation?
For a property you intend to let or sell, a refurbishment bridge that funds the purchase and works and then refinances onto a term mortgage is usually the most efficient route, because a term lender will not advance against a property that needs work. We model the bridge and the exit together so the total cost is clear from the start.
Discuss light refurbishment finance
Send us the property details and we will come back with a view on lenders and likely terms within one working day.