Purchase-plus-works bridging for light and heavy refurbishment — including unmortgageable stock, EPC upgrades, conversions and change of use — with staged drawdowns against inspection.
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In short
How does refurbishment bridging finance work in the UK?
Refurbishment bridging funds up to 75% of the purchase price plus up to 100% of the works cost, usually capped near 70% of gross development value, at around 0.60%–0.95% per month. Works funds are released in stages against inspection and the loan is repaid by a refinance on the improved value or a sale.
Light refurbishment: cosmetic works, no planning or building-regulations change.
Heavy refurbishment: structural work, extensions, conversions and change of use.
Drawdowns are released in arrears, so fund the first stage yourself.
Unmortgageable property is financeable because the loan fixes the defect.
At a glance
Key facts
Figures reviewed:
Rates
From 0.60% per month
Day-one LTV
Up to 75% of price
Works funding
Up to 100% of cost
Max LTGDV
Around 70%
Term
6 – 24 months
Speed
2 – 4 weeks
Typical set-up costs
1.5% – 2.5% of loan (arrangement, valuation, legals)Excludes stamp duty; non-resident surcharges may apply.
Adviser response time
Within one working day
Indicative figures for guidance only, correct as at October 2026. Rates, costs and timelines vary by lender, borrower profile, asset and jurisdiction, and are not an offer of finance. How we derive these figures.
Methodology and assumptions
Figures are compiled by Clifton International specialists from live lender term sheets, indicative quotes and completed transactions arranged over the preceding 12 months.
Rates and costs are stated as ranges rather than a single number because pricing is set case-by-case on borrower profile, residency, asset type, location and loan-to-value.
Timelines assume a complete document file from the outset; valuation, legal capacity and (in Spain) NIE and notary availability drive the critical path.
Costs exclude any lender, broker or third-party fees not stated on the page, and exclude currency movement between agreement and drawdown.
Figures are reviewed monthly and re-checked against lender pricing whenever a material market change occurs.
Last reviewed . Read the full Key facts methodology, or speak to our team for a quote based on your circumstances.
At a glance
Light or heavy refurbishment finance — which do you need?
Light refurbishment covers cosmetic and non-structural works without planning; heavy refurbishment covers structural change, extensions and conversions and is priced and monitored differently.
Feature
Light refurbishment
Heavy refurbishment
Works
Kitchens, bathrooms, rewire, decoration
Structural change, extensions, conversions
Planning / building regs
Not usually required
Usually required
Pricing
0.55% – 0.85% per month
0.75% – 1.10% per month
Day-one LTV
Up to 75% of purchase price
Up to 70% of purchase price
Works funding
Up to 100% of costs in arrears tranches
Staged drawdowns against surveyor sign-off
Monitoring
Light — often desktop
Monitoring surveyor on each drawdown
Term
6 – 18 months
12 – 24 months
Exit
BTL refinance or resale
Refinance on the improved value or resale
Swipe the table sideways to see all columns.
Where works exceed roughly 25% of the purchase price or touch structure, expect the case to be underwritten as heavy refurbishment.
Up to 75% of price and up to 100% of build cost in one facility, within a GDV cap.
Light and heavy schemes
From kitchens and bathrooms to structural works, loft conversions and change of use.
Unmortgageable stock
Finance the very properties term lenders decline, then refinance once the works are done.
EPC and MEES upgrades
Fund energy-efficiency works to bring rental stock to a lettable standard.
Staged drawdowns
Funds released against monitoring surveyor or valuer inspections as stages complete.
Exit lined up early
The BTL or residential refinance is evidenced against lender criteria before you draw.
Borrower eligibility
Who we can help
Landlords and property investors
First-time and experienced refurbishment developers
SPVs, LLPs and corporate borrowers
UK residents, expatriates and foreign nationals
Typical lending criteria
Indicative parameters
Rates
From 0.60% per month
Day-one LTV
Up to 75% of price
Works funding
Up to 100% of cost
Max LTGDV
Around 70%
Term
6 – 24 months
Speed
2 – 4 weeks
Indicative only. Actual terms depend on borrower profile, asset and lender criteria.
Rates this month
UK bridging loan rates
Last updated:
Regulated from
0.53%
per month
Unregulated from
0.55%
per month
Typical arrangement fee
2%
of the loan
Maximum LTV
80%
lender dependent
Lowest published monthly rates across 20 lenders' product guides, checked monthly and approved before publishing. Indicative only — not a quote or recommendation. Clifton International is an introducer, not a lender or adviser, and does not handle client funds. See every lender's rates or compare for your loan.
Recent transactions
Case studies from our files
Published transactions from our own case study library — select any to read the full brief.
It is a short-term loan that funds the purchase of a property plus all or part of the works, released in stages against inspections. It is repaid by a refinance onto a term mortgage or a sale once the property is finished.
Light refurbishment means cosmetic works with no change of use and no planning or building-regulations involvement. Heavy refurbishment covers structural change, extensions, loft or basement conversions and change of use, and is priced and monitored more like development finance.
Typically up to 100% of the works cost alongside up to 75% of the purchase price, provided the total stays within around 70% of the gross development value.
Against a monitoring surveyor's inspection or, on lighter schemes, a simple valuer re-inspection. Funds are released in arrears as each stage completes, so cashflow for the first stage must come from you.
Yes — that is the core use case. Properties with no kitchen or bathroom, damp, fire damage or a failing EPC are financeable because the loan repairs the very defect blocking a term mortgage.
Not for light refurbishment, where a competent contractor is usually enough. For heavy refurbishment lenders want relevant track record, or an experienced main contractor and monitoring surveyor in place.
A refinance onto a BTL or residential mortgage on the improved value, or a sale of the completed property. Lenders want the exit lender's criteria evidenced before drawdown, not afterwards.
UK bridging finance by scenario
Bridging loans for every UK scenario.
Each page covers the structure, criteria, costs and typical timescales for one bridging use case — with real completed transactions.
UK bridging market, Q2 2026
Last updated · next update due November 2026
Average monthly interest rate
0.81%
Q1 2026: 0.82%
Average loan-to-value
55%
Q1 2026: 52%
Average completion time
46 days
Q1 2026: 53 days
Average term
12 months
Q1 2026: 12 months
Market averages across completed deals, summarised from Bridging Trends (compiled by MT Finance). Refreshed quarterly; not our panel pricing. Full market data.
