What is a Property Refurbishment Bridging Loan?

This type of finance is designed for those looking for a quick short term loan to be used for refurbishing or converting a property before renting it or selling it. This type of loan is ideal for those property developers, landlords and property investors who would be interested in such type of finance. Doing such essential work as refurbishing the interior or exterior of a property, creating an extension and funding other kinds of works will increase the value of the property.

Latest Property Refurbishment Loan Offers

View some of the latest offers from leading lenders.

Product BF01
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Interest Rate 0.44%Lender Fee 1.5%Max LTV 55%Max Term 18 MonthsMin-Max Loan £250,000 - £50,000,000Security Type ResidentialRegulated? No
Product BF04
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Interest Rate 0.54%Lender Fee 1.5%Max LTV 65%Max Term 18 MonthsMin-Max Loan £100,000 - £250,000Security Type ResidentialRegulated? No
Product BF05
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Interest Rate 0.59%Lender Fee 3%Max LTV 70%Max Term 12 MonthsMin-Max Loan £250,000 - £50,000,000Security Type ResidentialRegulated? Yes
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Key criteria and considerations:

  • You could use the finance to fund 100% of your refurbishment costs
  • You could gain 75% Loan to value and even 100% if additional security can be provided
  • Loans typically start at £25,000 with no maximum limit and interest rate charges can be as low as 0.44% per month and that interest can be rolled onto he loan.
  • The term of borrowing can be anything from 1 month to 24 months.
  • Any security can be provided and those with adverse credit history will be considered and even those properties which are in a poor state of repair may be taken into account.
  • Loans with no early repayment charges are available and all exit routes proposed will be considered.
  • Available throughout the U.K.
  • On average a property refurbishment application can take up to 2 weeks to be finalised.

What are your options on borrowing?

Aside from the interest rates, lenders will charge their own lender arrangement fee which will be based on a combination of their own internal criteria as well as the varying loan amounts requested. Cases are often considered on a case by case basis taking into consideration the experience of the borrower, the level of works and risks involved as well as the outcome to be achieved.

Finbud offers two types of property refurbishment finance options:

  1. 1) As a % of the Loan to Value-so that will mean up to 75% LTV, the lender fee will be set at 2% and the interest rate will vary from 0.44%-0.54% depending on how extensive the refurbishment will be with a higher rate being imposed on extensive refurbishment.
  2. 2) As a set % of the current LTV plus the refurbishment costs- up to 70% LTV plus 100% of the build costs, interest rate costs from 0/85% and again the lender fee is usually be 2% of the loan amount.

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