Bridging Loans for Renovations
Short-Term Finance for Property Renovation Projects
Need quick access to funding for a renovation, refurbishment or property purchase? Bridging loans for renovations can help property investors, landlords and developers move quickly when a standard mortgage may not be suitable.
Whether you are buying at auction, improving an existing property, refurbishing before letting, or renovating a property before selling, we can provide short-term finance built around your project.
Key Benefits
Tell us about the property, the work you are planning and how much funding you require.
Bridging loans are secured finance. Your property or asset may be at risk if you are unable to repay the loan as agreed. Finance is subject to our lending criteria, valuation and individual circumstances.
Renovation Bridging Finance at a Glance
| Finance detail | Typical terms |
|---|---|
| Loan amount | £50,000 to £1,000,000 |
| Maximum LTV | Up to 85% |
| Interest rate | From 0.9% per month |
| Loan term | Typically 12 to 18 months |
| Arrangement fee | From 1.5% |
| Exit fee | One month's interest |
| Typical completion | Four to eight weeks |
| Interest options | Serviced, retained or rolled up |
The exact terms offered will depend on the property, proposed work, available security, borrower circumstances and exit strategy.
What Are Bridging Loans for Renovations?
Bridging loans for renovations are short-term secured loans used to fund property improvement projects. They can be used to purchase a property, complete renovation work, or raise funds against an existing property.
This type of finance is often used when a traditional mortgage is too slow, unavailable or unsuitable. For example, some mortgage providers may not lend against a property without a working kitchen, bathroom or safe living conditions. In these cases, a refurbishment bridging loan may provide a route to complete the works before refinancing or selling.
When assessing an application, we will usually consider the property value, loan amount, refurbishment plans, loan term, borrower circumstances and exit strategy. The strength of the overall project will determine whether we can provide the required funding and on what terms.
Planning a renovation project?
Contact us to discuss your property, timescale and funding requirements.
How Renovation Bridging Finance Works
A renovation bridging loan is designed to fill a funding gap. Our loans are generally arranged over terms of 12 to 18 months, with repayment expected at the end of the agreed loan term.
The process generally works as follows:
You provide details of the property, planned works and required loan amount.
We review the project, available security, valuation and proposed exit strategy.
If the application meets our criteria, we issue terms and the legal checks begin.
Once legal checks are complete, funds are released and paid to you or your solicitor.
The loan is repaid through sale, refinance or another accepted route.
A typical application may take between four and eight weeks to complete. Timescales depend on the property, valuation, legal work and complexity of the renovation project.
Rates start from 0.9% per month. The rate offered will depend on factors such as the loan size, property condition, refurbishment work and exit strategy. Interest may be serviced monthly, retained from the loan advance or rolled up and repaid when the loan ends.
Types of Renovation Projects We Can Fund
Different types of bridging loans may suit different renovation projects. We distinguish between light and heavy refurbishment projects, so it is important to understand how the proposed work is likely to be assessed.
Light Refurbishment
Light refurbishment usually covers non-structural work. This may include decoration, new flooring, kitchen upgrades, bathroom improvements, electrical work, plumbing or general modernisation.
These projects are often undertaken by landlords and property investors who want to improve a property before letting, selling or refinancing.
Heavy Refurbishment
Heavy refurbishment can involve more complex work. This may include structural changes, extensions, conversions, major repairs, or projects that need planning permission or building control approval.
Because these projects can carry more risk, we may look more closely at the schedule of works, budget, property value and borrower experience.
Common Uses
Renovation bridging finance may be considered for:
We can consider residential, commercial and mixed-use property, as well as land. Funding may be available towards both the property purchase and the renovation work, subject to our assessment of the project.
Benefits and Considerations
Bridging loans are typically used when speed, flexibility and property condition are important. They may allow you to act quickly on a property purchase, carry out value-adding improvements, or complete works before moving to longer-term finance.
They can also be useful when a property is not yet suitable for a standard mortgage. For example, a landlord may use refurbishment bridging finance to improve a property before refinancing onto a buy-to-let mortgage.
A clear repayment plan is essential. Before proceeding, you should understand the total cost, loan term, security required and what will happen if the loan is not repaid on time.
Bridging loans are secured against property or another acceptable asset. If you are unable to repay the loan, we may take action to recover the debt. This could include repossession of the secured property.
Costs, Criteria and Exit Strategy
The cost of a renovation bridging loan depends on the loan amount, property value, project type, loan term and exit strategy.
Our key lending figures include:
Other costs may include
The exact cost of the loan will be set out clearly in the terms provided for your project.
What We Look At
When assessing an application, we may consider:
The current and expected value of the property
The refurbishment budget and schedule of works
The borrower’s experience and circumstances
The property’s condition and location
The structure of the proposed exit strategy
Whether the loan is regulated or unregulated
Any existing mortgage or secured borrowing
A refurbishment bridging loan with bad credit may still be considered, depending on the circumstances. We will assess the available security, reason for the adverse credit and strength of the proposed exit strategy before making a lending decision.
Exit Strategies
Your exit strategy explains how the loan will be repaid. Common exit strategies include selling the renovated property, refinancing onto a longer-term mortgage, or repaying the loan from another accepted source.
We will need to be satisfied that the proposed exit is realistic. If the plan is to refinance, we may review the expected property value and potential rental income. If the plan is to sell, we may consider the likely resale value and demand within the local market.
Why Borrow Directly From Us?
Renovation finance can move quickly, but the right structure matters. As the lender, we assess your application and make the lending decision directly.
This means you can discuss the property, proposed work and exit strategy with the team responsible for reviewing the loan. It also allows us to understand the full project rather than considering the property purchase in isolation.
With 10 years of experience, we understand the practical requirements of light and heavy refurbishment projects, auction purchases and properties that are not currently suitable for a standard mortgage.
Our support can include:
Direct assessment of your renovation finance application
Funding for light and heavy refurbishment projects
Clear information about rates, fees and repayment requirements
Support with auction, unmortgageable and value-add projects
Finance towards both the purchase and renovation work
Clear communication from enquiry to completion
Ready to discuss bridging loans for renovations?
Get in touch today and tell us about your project.
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Frequently Asked Questions
What is a bridging loan for renovations?
A bridging loan for renovations is a short-term secured loan used to fund a property purchase, refurbishment or improvement project. It is usually repaid through the sale of the property, refinance, or another accepted exit route.
Can I use a bridging loan for an uninhabitable property?
In some cases, yes. We may be able to provide bridging finance for properties that are difficult to mortgage, including properties without a working kitchen or bathroom. Approval depends on the property, proposed work, valuation and exit strategy.
How quickly can I get funding?
A typical application takes between four and eight weeks to complete. The exact timescale will depend on the valuation, legal checks, property condition and complexity of the project.
What is the difference between light and heavy refurbishment?
Light refurbishment usually means cosmetic or non-structural work. Heavy refurbishment often involves structural changes, extensions, conversions, or work requiring planning permission or building control approval.
How much can I borrow?
We provide renovation bridging loans from £50,000 to £1,000,000, with funding available up to 85% LTV. The amount we can lend will depend on the property value, available security, refurbishment project and proposed exit strategy.
Can the loan cover the property purchase and renovation work?
Yes. We can provide funding towards both the property purchase and the renovation work, subject to our lending criteria and assessment of the project.
What are the costs?
Rates start from 0.9% per month, with arrangement fees starting from 1.5%. An exit fee equivalent to one month’s interest also applies. You may also need to pay valuation, legal, monitoring or drawdown fees, depending on the loan structure.
How is the interest paid?
Interest can be serviced monthly, retained from the initial loan advance, or rolled up and repaid at the end of the term. The available structure will depend on the project and the terms of the loan.
What exit strategies are accepted?
Common exit strategies include selling the property after the work is complete, refinancing onto a longer-term mortgage, or repaying the loan from another accepted source. We will need to be satisfied that the exit route is realistic and achievable within the agreed term.
Can I get a refurbishment bridging loan with bad credit?
We may consider applications from borrowers with adverse credit. Our decision will depend on the circumstances, available security, loan amount and proposed exit strategy. Rates and terms may differ depending on the level and type of adverse credit.
Speak to Us About Renovation Bridging Finance
If you need finance for a renovation, refurbishment or time-sensitive property purchase, contact us to discuss your project. We can explain whether it meets our lending criteria, the information we will need and the terms that may be available.
Bridging finance is not suitable for everyone. This page is for general information only and should not be treated as financial advice. Any finance is subject to our lending criteria, valuation, affordability where applicable, and individual circumstances.
The information on this page is for general information only and does not constitute financial advice. Finance is subject to status, affordability where applicable, valuation, full underwriting and Angel Finance’s lending criteria.
Where borrowing is secured against property, your property may be at risk if the loan is not repaid. You should ensure the proposed borrowing and repayment strategy are appropriate for your circumstances before proceeding.
