House Refurbishment Loan for Investors
Get Refurbishment Finance for an Investment Property
Need funding to renovate a property before sale, refinance or letting? Angel Finance provides house refurbishment loans for investment projects that require work before the property can move forward.
This type of finance is designed for investors who will not be living at the property during the renovation.
Whether you have bought at auction, underestimated the cost of the work or need funding to complete a project before refinancing, we can review the property and explain the finance we may be able to provide.
Our refurbishment finance includes:
Tell us about the property, the work required and how quickly you need funding.
Finance is subject to status, valuation, affordability where applicable, our lending criteria and individual circumstances. Your property may be at risk if secured borrowing is not repaid.
Enquire About Refurbishment FinanceRefurbishment Finance Built Around Your Project
A house refurbishment loan can help investors fund work on a property they do not live in. The right structure will depend on the condition of the property, refurbishment budget, loan amount required and how the finance will be repaid.
Some investors need short-term funding to complete work before selling. Others may need finance before moving onto a buy-to-let mortgage or refinancing existing borrowing. In some cases, a personal loan or standard home improvement loan may not be suitable because the property is an investment, the work is more involved or the timescale is tight.
We assess each project directly, considering the property, planned work, borrower contribution and proposed exit route.
Who This Service Is For
This service is designed for property investors who need funding to renovate a house they do not occupy.
You may be looking for refurbishment finance if:
This finance is not suitable if you intend to live in the property while the work is underway.
Unsure Which Route Fits Your Project?
Send us the property details, estimated value, refurbishment budget and timescale. We can assess the project against our lending criteria.
Types of Refurbishment Projects We Can Fund
A house refurbishment loan may be considered for a wide range of investment property work, including:
Angel Finance considers residential, commercial and mixed-use property, as well as land. All assets can be reviewed, subject to the quality of the security and the wider project.
We will usually want to understand the schedule of works, likely cost, current property condition and expected value once the refurbishment has been completed.
House Refurbishment Loan Options
Bridging Finance for Refurbishment
Bridging finance may be used where an investor needs short-term funding to complete refurbishment work before selling, refinancing or moving onto longer-term finance. This can be useful when speed matters, such as after an auction purchase or when a property cannot yet meet standard mortgage requirements.
We will usually assess the property value, loan-to-value, refurbishment plan, borrower profile and exit strategy. Loans are available from £50,000 to £1,000,000, with funding of up to 85% LTV.
Typical loan terms range from 12 to 18 months. A decision in principle can usually be provided within one working day, while funding is typically available within 21 days, subject to valuation, legal work and the required information being supplied promptly. Our service-level target is to complete within 28 days.
Interest may be serviced monthly, retained from the loan advance or rolled up and repaid at the end of the term.
Nobody can live in the property while refurbishment work makes it unsafe, incomplete or unsuitable for occupation.
Secured Refurbishment Finance
Secured refurbishment finance may be considered for investors who need a larger facility and have suitable property security. This may be relevant where the amount required is too high for an unsecured option or the property is not yet suitable for a standard mortgage.
Angel Finance can fund the property purchase and eligible renovation costs. Up to 75% of the cost of the works may be available, subject to our assessment of the project.
Rates start from 0.9% per month, with arrangement fees from 1.5%. An exit fee equivalent to one month’s interest also applies. Other costs may include valuation, legal, monitoring or drawdown fees, depending on how the finance is structured.
Because the borrowing is secured against property, the property may be at risk if the loan is not repaid. We may review your contribution, credit history, experience and proposed repayment route before making a lending decision.
When Unsecured Borrowing May Not Be Suitable
For smaller refurbishment work, some investors consider an unsecured home improvement loan. This type of borrowing is generally based on personal income, credit history and affordability rather than the value of the investment property.
An unsecured loan may not be suitable for larger investor projects, uninhabitable properties or cases where a higher funding amount is needed. The shorter terms and monthly repayment requirements can also put additional pressure on project cash flow.
Where unsecured borrowing does not fit the project, secured refurbishment finance may provide a structure that is better aligned with the property, work and intended exit.
Why Investors Choose Angel Finance
Refurbishment finance can be difficult to navigate, especially if you are new to property investment or the project has not gone to plan. A lending decision is not based solely on the purchase price or the work required. The exit strategy, property condition, borrower contribution and overall viability of the project also matter.
As the lender, we review the project and make the lending decision directly. You can discuss the property, budget and repayment plan with the team responsible for assessing the application rather than relying on a broker to approach an external lender.
With 10 years of experience, we understand the practical pressures investors face when costs change, deadlines approach or a standard mortgage is unavailable.
Our direct approach can help provide:
How the Process Works
1. Tell Us About the Property
Share the address, property type, estimated value, purchase price if relevant, current condition and details of any existing mortgage or secured borrowing.
2. Explain the Refurbishment Plan
We will ask about the work required, budget, contractor estimates, timescale and whether planning permission or building control approval is involved.
3. We Assess the Application
Our team will consider the property, proposed work, loan amount, available security and exit strategy. A decision in principle can typically be provided within one working day.
4. Valuation and Legal Work Begin
If the application meets our initial criteria, the case progresses to valuation, legal checks and any further underwriting requirements.
5. Funds Are Released
Funding is typically available within 21 days, although the exact timescale depends on the valuation, legal process and complexity of the project. Our service-level target is completion within 28 days.
Need Funding to Complete a Refurbishment?
Provide the property details, work required and planned exit route. We can assess whether the project meets our lending criteria.
Get In TouchWhat We May Consider
Before providing a house refurbishment loan, we may review:
The emphasis placed on each point will depend on the project. In some cases, the proposed exit will be particularly important. More complex work may require closer attention to the budget, borrower experience and expected value after refurbishment.
Ready to Discuss Your House Refurbishment Loan?
If you need finance to renovate an investment property, Angel Finance can assess the project and explain the funding that may be available. This could include refurbishment bridging finance or another secured structure, depending on the property, work and repayment plan.
Get in touch with the details of your project, and our lending team will explain the next steps.
Finance is subject to status, affordability where applicable, valuation and our lending criteria. Your property may be at risk if secured borrowing is not repaid. Nobody can live in the property while the refurbishment work makes it unsafe or unsuitable for occupation.
Frequently Asked Questions
Can I Get a Loan to Refurbish an Investment Property?
Yes. Angel Finance may be able to provide funding to refurbish an investment property, depending on the property, planned work, loan amount, borrower contribution and exit strategy.
The property must not be occupied while the work makes it unsafe, incomplete or unsuitable for occupation.Is a House Refurbishment Loan for Homeowners?
This type of loan is for investors rather than homeowners renovating their main residence. If you intend to live in the property during the work, this type of refurbishment finance will not be suitable.
Can I Use a Bridging Loan for Refurbishment?
Yes. Bridging finance can be used for refurbishment projects where there is a clear repayment route, such as selling the property or refinancing once the work is complete.
Suitability will depend on the property, work, valuation, exit strategy and wider circumstances.What Loan Amount Can I Borrow?
House refurbishment loans are available from £50,000 to £1,000,000, with funding of up to 85% LTV.
The amount available will depend on the property value, available security, refurbishment costs and strength of the proposed exit strategy.What Borrower Contribution Is Required?
The contribution required will depend on the property purchase, loan-to-value and refurbishment budget.
Angel Finance can fund up to 75% of eligible refurbishment costs, which means you will normally need to provide the remaining contribution. The exact amount will be confirmed after the project has been assessed.
What Interest Rate Will Apply?
A decision in principle can typically be provided within one working day. Funding is usually available within 21 days, subject to valuation, legal work and all required information being provided.
Our service-level target is to complete the loan within 28 days.How Long Does Funding Take?
A decision in principle can typically be provided within one working day. Funding is usually available within 21 days, subject to valuation, legal work and all required information being provided.
Our service-level target is to complete the loan within 28 days.How Long Do I Have to Repay the Loan?
Loan terms are typically between 12 and 18 months. The agreed term should provide enough time to complete the refurbishment and carry out the intended exit, such as selling or refinancing the property.
Can I Repay the Loan Early?
Early repayment may be possible, depending on the agreed terms. An exit fee equivalent to one month’s interest applies, and any other repayment conditions will be explained before the loan completes.
What Fees Should I Expect?
Arrangement fees start from 1.5%, and an exit fee equivalent to one month’s interest applies.
Other costs may include valuation fees, legal fees, monitoring fees and drawdown fees where refurbishment funding is released in stages.
Compliance Disclaimer
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, our lending criteria and full underwriting. The amount available, interest rate, fees, loan term and repayment structure will depend on individual circumstances and the property being used as security.
Where borrowing is secured against property, your property may be at risk if the loan is not repaid. You should consider whether borrowing is affordable and appropriate for your circumstances before proceeding.
This service is for investment property refurbishment finance. Nobody can live in the property while the refurbishment work makes it unsafe, incomplete or unsuitable for occupation.
