Refurbishment Bridging Loans UK 0.39% pm
Fast bridging finance for light, medium or heavy works — purchase, refinance, or fund refurbishment costs with a clear exit to sale or refinance. Rates from 0.39% pm and leverage up to 85% LTV (case dependent).
Refurbishment Bridging Loan Calculator
Estimate LTV, interest, fees and an indicative net loan advance. This is guidance only — real terms depend on the property, works and exit strategy.
Use the figure the lender will anchor LTV against (often purchase price or current value).
Up to 85% LTV is possible on qualifying cases. Higher leverage is case-dependent.
Typical bridging terms are often 3–24 months (project + exit driven).
Monthly rate (not APR). Adjust to model different scenarios.
Retained reduces the cash you receive; serviced requires monthly payments.
Commonly 1–2% (varies by lender/product).
Many products waive exit fees, but not all.
Optional. Enter £0 if not applicable.
Indicative only — varies by complexity and solicitor.
Indicative only — varies by lender.
Indicative breakdown
Figures are indicative and do not constitute a binding offer or commitment to lend. Actual terms, rates and fees are subject to underwriting, valuation and legal review.
What is a refurbishment bridging loan?
A refurbishment bridging loan is short-term property finance secured against a property, used to purchase quickly, refinance to release capital, and/or fund refurbishment costs so the asset becomes rentable, saleable, or mortgageable. It’s a bridge to a defined exit — typically sale or refinance.
Ideal for auctions and time-critical purchases where a mortgage can’t move quickly enough.
Works may be funded day one (common on light) or via staged drawdowns (common on medium/heavy).
Exit via refinance or sale once the property is stabilised and meets lender/market requirements.
Rates, leverage & terms
Pricing is driven by risk: LTV, property type, borrower profile, works complexity, and the strength of your exit. To win speed and pricing, packaging matters just as much as the security.
| Feature | Typical range |
|---|---|
| Term | 1–24 months |
| Interest | Serviced, rolled up, or retained |
| Funding | Day-one advance or staged drawdowns |
| Leverage | Up to 85% LTV (case dependent) |
Send these five details and you’ll get realistic terms quickly:
- Address + property type
- Purchase price / current debt
- Value estimate (even a range)
- Works summary + budget
- Exit route + timeline
Light vs medium vs heavy refurbishment
Lenders classify refurbishment by disruption, predictability, and whether the property remains stable mid-works. If works are mislabelled, underwriting slows — and timelines suffer.
Cosmetic / non-structural works. Usually faster, often higher leverage.
- Kitchens, bathrooms, decoration
- Flooring, windows, minor repairs
- Minor internal tweaks (non-structural)
- Light refurbishment bridging loans
The “missing middle” — package scope and costs properly or it gets treated as heavy.
- Partial rewires / plumbing upgrades
- Heating systems, larger internal upgrades
- Non-major roof works, damp remediation
Structural / high disruption. Often staged drawdowns with tighter oversight.
- Extensions, loft conversions, major reconfiguration
- Structural works, underpinning, major remediation
- Complex conversions / change of use
- No valuation heavy refurbishment
Day-one advance vs staged drawdowns
This is where most refurb deals either fly or stall. The right structure keeps contractors moving and reduces re-underwriting mid-process.
More funding up front — suits light refurb and clear exits.
- Speed-first structure
- Best for short timelines
Works funds released in tranches tied to milestones and evidence.
- Common for medium/heavy projects
- Needs clean scope + cost breakdown
Give underwriters clarity early and keep momentum through valuation and legals.
- Scope of works + timeline
- Contractor quote / cost breakdown
- Photos / condition evidence
- Exit evidence (comps/rent/refi route)
Valuation routes (AVM, desktop, full)
Valuation method can be the difference between “days” and “weeks”. Where suitable, AVMs and desktop valuations can speed up the process, but complex assets or heavier works often require a full valuation.
Fast route on standard, lower-risk properties where the lender accepts it.
Remote surveyor assessment — often a strong balance of speed and certainty.
Most robust option for unusual security, larger loans, or higher complexity works.
Fast-track underwriting pack
If you want speed, your pack needs to answer the risk questions before they’re asked. This is the cleanest route to fast terms and smoother legals.
- Address + property description
- Purchase price / current debt
- Value estimate
- Works summary + budget
- Exit route + timeline
- Scope of works (clear bullets)
- Cost breakdown / contractor quote
- Milestone plan (if drawdowns)
- Photos / condition evidence
- Contingency allowance
Why Aura Capital
Refurb bridging is won on packaging and lender fit. We structure the deal around speed, works reality, and an exit underwriters can sign off without friction.
Fast feasibility checks and smooth progression when the underwriting pack is clean.
Day-one advance vs drawdowns set upfront — no surprises once valuation and legals start.
We help you evidence the exit (comps, rent proof, refinance route) so approvals move faster.
Costs & fees (what to budget for)
Most refurb bridges include lender interest + arrangement fee, plus third-party valuation and legal costs. The best pricing outcome usually comes from the right lender fit (works type + exit) — not just chasing the lowest headline rate.
- Lender: arrangement fee, interest (serviced/retained/rolled), possible monitoring/drawdown costs
- Third-party: valuation (AVM/desktop/full), legal fees, specialist reports (if required)
FAQs
Short answers to the questions that slow refurbishment bridging deals down.
What is a refurbishment bridging loan?
A short-term loan secured on property used to buy quickly, refinance to release funds, and/or pay for refurbishment works before exiting via sale or refinance.
What’s the difference between light, medium and heavy refurbishment?
Light is typically cosmetic/non-structural. Heavy involves structural works or high disruption and is commonly funded with staged drawdowns. Medium sits between and needs clear scope, costs and timeline to avoid being treated as heavy.
Can refurbishment costs be included in the loan?
Sometimes. Light refurbishment can allow more funding up front; medium/heavy projects often use staged drawdowns tied to milestones and evidence.
How do staged drawdowns work?
Funds are released in tranches after progress checks or evidence against agreed milestones (for example: first fix, second fix, completion). The exact process depends on the lender and works type.
How quickly can refurbishment bridging complete?
Timelines depend on valuation route, legal complexity and how fast documents are supplied. A clean underwriting pack and responsive solicitors are the biggest speed levers.
What interest options are available: retained, rolled up or serviced?
Serviced interest is paid monthly. Rolled-up interest is added and paid at redemption. Retained interest is deducted from the advance at completion (reducing cash received) but can help cashflow during works.
What LTV can I get on a refurbishment bridging loan?
It’s case dependent. Higher LTVs are more achievable on light refurbishment with strong exits. Heavy refurbishment and complex security typically reduce leverage or move to drawdowns.
Can I get a refurbishment bridging loan on an unmortgageable property?
Often yes. The lender focuses on whether the works are feasible and the property becomes mortgageable or saleable at exit.
Do I need planning permission?
Not always. Many projects don’t require planning. If your strategy relies on planning approval, lenders will want clarity on status, timeline and risk.
What valuation types are available (AVM, desktop, full)?
Where eligible, AVM or desktop valuations can speed up the process. More complex assets, heavier works or larger loans often require a full valuation.
Can I apply through an SPV/limited company?
Yes. Many investors use SPVs. Lenders assess the property, the borrowing entity and the directors/guarantors.
Is refurbishment bridging regulated or unregulated?
Most investment bridging is unregulated. If you or close family will live in the property, it may be regulated, which can change the lender pool and process.
