Refurbishment bridging loans
Buy and renovate neglected, unmortgageable or under-performing properties, with high-leverage funding and competitive pricing tailored to your project.
A fast refurbishment bridging loan gives property investors rapid access to short-term capital for both the acquisition and the improvement works, without tying up their own funds or waiting for mainstream lenders who cannot support properties in poor condition.
Refurbishment loans offer a flexible, efficient way to add value to properties needing improvement, with completion typically in 2–3 weeks, keeping them well within standard 28‑day auction deadlines.
Key loan parameters
Rates and LTVs vary by project and lender. Contact us for a tailored quote.
Indicative rate
From 0.65%/mo
Max LTV (day one)
Up to 72% NET of purchase
Build cost funding
Up to 100%
Loan size
£100k – £25m
Term
1 – 24 months
Early repayment
No ERCs
Why choose a fast refurbishment bridging loan?
Refurbishment bridging loans are the most flexible and high-leverage method of funding the acquisition and improvement of dilapidated, under-performing or unmortgageable property. Leverage and pricing are the defining advantages: lenders can advance up to 72% NET of purchase price on day one plus 100% of refurbishment costs, with interest rolled up so there are no monthly payments. Tiger Financial has been arranging refurbishment funding for investors since 2004, negotiating on their behalf across a fragmented and fast-moving lending market.
They allow investors to:
- Purchase properties outside a mainstream bank’s remit
- Fund renovation work without tying up their own capital
- Move quickly on time-sensitive opportunities, including auction purchases
- Raise a property’s value ready for sale or refinance
- Access staged drawdowns as works progress, reducing interest costs
- Benefit from dual representation solicitors offered by some lenders, reducing legal costs and simplifying the transaction
- Use search indemnity insurance on mainstream residential assets, accelerating exchange on suitable properties
- Pay interest only from the point each refurbishment tranche is drawn, with no monthly payments — interest rolls up into the loan
Refurbishment bridging for auction purchases
Auction properties frequently require refurbishment before they are habitable or mortgageable — and auction purchases must complete within 28 days. Standard mortgage lenders cannot meet this deadline. A fast refurbishment bridging loan can be arranged to cover both the purchase and the renovation works, giving you the speed and flexibility to compete at auction with confidence.
Mainstream lenders cannot support these projects because their products do not lend themselves to properties that are derelict, lack the necessary services, or are to be converted in use. A specialist fast bridging loan fills that gap.
How quickly can you get funds?
Same day
Decision in principle
Days 7–14
Legal & underwriting
Days 1–3
Formal terms issued
From Day 21-28
Funds released (typically)
Days 3–7
Valuation instructed
Speed Factor
Case assessed on complexity
Interest on refurbishment funds is only charged from the point each tranche is drawn, with interest typically rolled into the loan so there are no monthly payments. Up to 70% LTGDV achievable with interest added to the facility.
Timescales depend on the complexity of the project, the property’s condition, and how quickly solicitors and valuers can be instructed. Refurbishment bridging loans typically complete in 3–4 weeks. Tiger Financial’s lender relationships mean terms can be presented to you the same day you enquire.
An explanation of a refurbishment bridging loan
A refurbishment bridging loan offers:
- Short-term financing that enables the purchase of a property
- Extra finance to carry out renovation works
- Rapid and efficient project completion
This product is typically used where a property is currently un-mortgageable and requires re-branding/improvement.
Types of refurbishment finance
Light refurbishment
Works where no structural alteration or planning is required. Typical projects include:
- Kitchen or bathroom refurbishment
- Redecoration
- Heating, ventilation or electrical works
- Replacement windows and doors
- Nonstructural room re-modelling
Heavy refurbishment
Used for structural alterations or works where planning permission or building regulations permission is needed. Examples include:
- Extensions
- Loft conversions
- Structural re-configuration
- New build elements like annexes
Typical structure of a refurbishment loan
The loan usually consists of the following two disbursements:
- Day one loan – based on current value of property
- Refurbishment tranche – released in tranches as works progress (usually in arrears)
Interest is only charged on the refurbishment tranche once drawn.
Exit strategies
Every lender will want to understand how you intend to repay the bridging loan at the end of the term. The three most common exit routes for refurbishment projects are:
- Sale of the refurbished property: Once works are complete and the property has been revalued, investors sell at the improved market value and use the proceeds to repay the loan. This is the most common exit for property flippers.
- Refinance onto a buy-to-let or residential mortgage: If you intend to retain the property as a rental asset, you refinance onto a standard mortgage once it is habitable and mortgageable. The improved value typically supports a higher mortgage, allowing you to extract equity at the same time.
- Repayment from another property or asset: Some investors use the sale or remortgage of a separate asset to repay the bridge. Tiger Financial can help you plan the most efficient exit from the outset.
Why Tiger Financial
- Since 2004: An established, specialist broker
- Whole market: Access across 50+ lenders
- Same day: Decision in principle
- Unregulated: Investor & business use only
As a specialist broker with over 20 years in bridging and development finance, Tiger Financial has the lender relationships and market knowledge to source fast, competitive refurbishment bridging terms that a borrower approaching lenders directly is unlikely to achieve. We manage the process from initial enquiry through to drawdown, so you can focus on the project.
Frequently asked questions
A decision in principle can be issued the same day you enquire. Full completion typically takes 3–4 weeks, reflecting the additional underwriting and monitoring required for refurbishment projects. This is distinct from standard bridging loans, which can complete in 5–7 days.
The strongest lenders can advance up to 72% NET of the purchase price on day one, plus 100% of the refurbishment costs released in staged drawdowns as works progress. Interest is added to the loan rather than charged monthly, meaning no payments are due during the term. The overall facility is capped at 70% of the gross development value (LTGDV) once the refurbishment tranche and rolled-up interest are included.
Light refurbishment covers cosmetic works that do not require planning permission or structural alteration — kitchens, bathrooms, redecoration. Heavy refurbishment involves structural changes or works requiring planning permission, such as extensions, loft conversions, or structural reconfigurations.
Yes. Refurbishment bridging loans are well-suited to auction purchases because they can be arranged within the standard 28-day completion window. They can fund both the purchase price and the subsequent renovation works in a single facility.
The loan is typically split into a day-one advance (based on the current value of the property) and a refurbishment tranche released in stages as works are completed and verified, usually by a monitoring surveyor. This structure keeps interest costs down by limiting the amount drawn at any one time.
Interest is only charged on funds once drawn.
Requirements vary by lender. Some lenders accept first-time refurbishers on light projects, while others require a demonstrable track record for heavy refurbishment schemes. Tiger Financial works with lenders across both tiers and can match your application to the most suitable option.
Residential, semi-commercial, and commercial investment properties are generally accepted. The property must be in England or Wales in most cases, and lenders will require it to be wind and watertight for heavy refurbishment loans. Unmortgageable properties in poor condition are commonly used as security for light and heavy refurb bridges.
Dual representation (dual rep) means a single firm of solicitors acts for both the borrower and the lender in the same transaction. Some bridging lenders permit this arrangement, which reduces legal costs and can speed up the conveyancing process. Not all lenders allow dual rep, and it is more commonly available on straightforward residential assets. Tiger Financial will confirm at the outset whether dual rep is available on your transaction.
Search indemnity insurance is a policy that replaces the need to carry out formal local authority, drainage, and environmental searches during conveyancing. Rather than waiting weeks for search results, the lender and buyer are protected by an insurance policy that covers any adverse findings that searches would have revealed. It is available on mainstream residential assets and is accepted by certain bridging lenders, enabling faster exchange of contracts. It is not available for all property types or locations, and your solicitor will advise whether it is suitable for your transaction.