Light Refurbishment Bridging Loans
We arrange fast, flexible light refurbishment bridging loans for investors buying and improving property that needs cosmetic work, new kitchens, bathrooms, rewiring, redecoration, without structural alteration or planning permission. With a panel of 300+ lenders, we secure terms that individual borrowers rarely see approaching lenders directly.
A light refurbishment bridging loan funds both the purchase and the improvement works in a single facility, with interest rolled up so there are no monthly payments. Because the works are cosmetic rather than structural, lenders view these projects as lower risk, which means higher leverage, lower rates and faster completions than heavy refurbishment schemes.
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 1): Up to 73% NET purchase
- Refurb cost funding: Up to 100% of works
- Max LTGDV: Up to 70%
- Loan size: £100k – £50m+
- Term: 1 – 24 months
- Early repayment: No ERCs
- Monthly payments: None, interest is rolled up
What is a light refurbishment bridging loan?
A light refurbishment bridging loan is short-term property finance used where the works to be carried out are cosmetic and do not require planning permission, structural alteration or a change of use under building regulations. Typical light refurbishment projects include:
- Kitchen or bathroom refurbishment
- Full redecoration
- Heating, ventilation or electrical works (including rewiring)
- Replacement windows and doors
- Non-structural room re-modelling
- New flooring, plastering and general modernisation
- Cosmetic works to bring a rental property up to EPC or letting standard
If your project involves extensions, loft conversions, structural reconfiguration or anything requiring planning permission, you will need a heavy refurbishment facility instead, see our main refurbishment bridging loan page for how the two compare, or call us and we will point you to the right structure in minutes.
How does a light refurbishment bridging loan work?
The loan usually consists of two disbursements:
- Day one advance: Based on the current value of the property, typically up to 73% NET of the purchase price. This lets you complete the purchase quickly, including within standard 28-day auction deadlines.
- Refurbishment tranche: Up to 100% of the cost of works, released as the project progresses. Because light refurb works are modest and short in duration, many lenders release the works funding in a single tranche or with light-touch monitoring, often without the full monitoring surveyor regime required on heavy refurb and development schemes.
Interest is only charged on funds once drawn, and is typically rolled into the loan so there are no monthly payments during the term. The overall facility is capped at around 70% of the gross development value (LTGDV) once the refurbishment tranche and rolled-up interest are included.
Once works are complete, the property is revalued at its improved value and the loan is repaid, either through sale, or by refinancing onto a buy-to-let or residential investment mortgage at the higher valuation, often releasing your original equity back out for the next project.
Light refurbishment bridging loan rates
Light refurbishment bridging loan rates currently start from around 0.65% per month for strong applications, with the exact rate determined by:
- Loan to value (day one) and loan to GDV
- The condition and location of the property
- The scale of works relative to the property’s value
- Your experience
- Your credit profile
- The strength of your exit strategy
Because no structural risk is involved, light refurbishment rates sit at the lower end of the refurbishment bridging market – often close to standard bridging rates, and several lenders on our panel price light refurb deals identically to a clean bridge. Beyond the headline rate, always compare arrangement fees, valuation and legal costs, and whether the lender charges exit fees or ERCs. Lenders on our panel offer facilities with no early repayment charges, so if you finish and sell ahead of schedule you simply stop paying interest.
As a whole-of-market broker, we compare the true total cost of every offer, not just the advertised rate, and negotiate fee levels down on your behalf.
Light refurbishment bridging loan calculator
Want to know how much you could borrow against your project, or what the loan will cost to repay? Try our bridging loan calculator, a quote will be displayed in seconds. Just give us a call after and we can talk through your light refurbishment project in more detail.
Why use a light refurbishment bridging loan?
Mainstream mortgage lenders are generally unable to support these projects, their products, by their very nature, do not lend themselves to properties that are tired, un-lettable or un-mortgageable in their current condition. A light refurbishment bridging loan fills that gap, enabling investors to:
- Purchase properties outside a mainstream bank’s remit: Tired, dated or un-mortgageable stock is often where the best margins sit.
- Fund the works without tying up capital: Up to 100% of refurbishment costs funded, keeping your cash free.
- Move at auction speed: Completion typically within 2–3 weeks, well inside standard 28-day auction deadlines.
- Force the value quickly: Cosmetic works typically take 4–12 weeks, so your money is recycled far faster than on structural projects.
- Exit flexibly: Sell at the improved value, or refinance onto a buy-to-let mortgage and extract equity for the next deal.
Light vs heavy refurbishment bridging: which do you need?
The distinction matters because it changes which lenders will fund you, at what rate, and with how much monitoring:
- Light refurbishment: No structural alteration, no planning permission, no change of use under building regs. Cosmetic and mechanical works only. Lower rates, higher leverage, faster drawdowns, and open to first-time investors with many lenders.
- Heavy refurbishment: Structural works, extensions, loft conversions or anything requiring planning or building regulations approval. Priced higher, monitored more closely, and lenders typically want to see a track record.
Some projects sit on the borderline, for example, converting a house to an HMO can be light or heavy depending on the works and licensing involved. Getting this classification right at the outset is critical: apply to the wrong lender tier and you waste weeks. With 300+ lenders on our panel, we know exactly where every project fits and which lenders want it this month.
How quickly can you get funds?
- Same day – decision in principle
- Days 7–12 – legal & underwriting
- Days 1–3 – formal terms issued
- From day 12–14 – application in process
- Days 3–7 – valuation instructed
- From day 14–21 – funds released (typically)
Light refurbishment bridges are among the fastest facilities in the market because the reduced monitoring requirements simplify underwriting. Timescales depend on the property, the lender and how quickly solicitors and valuers can be instructed, where speed is critical, options such as dual representation and search indemnity insurance can shave further days off the timeline. Tiger Financial’s lender relationships mean terms can be presented to you the same day you enquire.
Exit strategies for light refurbishment projects
Every lender will want to understand how you intend to repay the loan at the end of the term. The most common exits for light refurbishment projects are:
- Sale of the refurbished property: Complete the works, revalue, and sell at the improved market value. The classic flip.
- Refinance onto a buy-to-let mortgage: Once habitable, lettable and mortgageable, refinance at the improved value. This often supports a large enough mortgage to repay the bridge and extract most or all of your original equity.
- Repayment from another asset: Sale or remortgage of a separate property. We can help you plan the most efficient exit from the outset.
Why choose us for your light refurbishment bridging loan?
Tiger Financial has arranged refurbishment funding for investors since 2004, negotiating a fast-moving and fragmented marketplace on their behalf. As a specialist broker solely focused on bridging and development finance, we assist you every step of the way, from initial fact find, to deal structuring, file submission and active management through legals and underwriting. We use our long experience to influence the underwriters, look ahead for problems and offer solutions where we can, ensuring you the very best chance of a successful outcome.
- Since 2004: An established, specialist broker
- 300+ lender panel: Terms borrowers can’t find approaching lenders directly
- Same day: Decision in principle
- Unregulated: Investor & business use only
Light refurbishment bridging loan faqs
Works that require no structural alteration, no planning permission and no change of use under building regulations, kitchens, bathrooms, redecoration, rewiring, new heating, replacement windows and doors, and non-structural re-modelling. If planning or structural work is involved, the project is classed as heavy refurbishment.
Rates start from around 0.65% per month, with pricing driven by LTV, the property, your profile and the exit. Because no structural risk is involved, light refurb rates sit at the lower end of the refurbishment market and are often comparable to standard bridging rates.
The strongest lenders can advance up to 73% NET of the purchase price on day one, plus up to 100% of the refurbishment costs, subject to an overall cap of around 70% LTGDV including rolled-up interest. Facilities are available from £100k to £50m+.
Not normally. Interest is rolled up or retained and repaid when the loan is redeemed, keeping your cash free for the works. Interest is only charged on funds once drawn.
A decision in principle can be issued the same day you enquire, with completion typically in 2–3 weeks, comfortably inside standard 28-day auction deadlines. Light refurb bridges often complete faster than heavy refurbishment loans because less monitoring and underwriting is required.
Yes. Several lenders on our panel accept first-time refurbishers on light projects, since the works are cosmetic and lower risk. A demonstrable track record is generally only required for heavy refurbishment and structural schemes.
Yes, it is one of the most common uses. The facility funds both the purchase and the works in one loan and can complete within the 28-day auction window. See our auction finance page for more.
No, un-mortgageable and tired properties are routinely used as security for light refurbishment bridges. That is precisely the gap this product fills: mainstream lenders won’t touch the property in its current state, the bridge funds the purchase and works, and you exit once it is mortgageable at its improved value.
Often not, or only on a light-touch basis. Because the works are modest and short in duration, many lenders release the refurbishment funds in a single tranche or against simple evidence of progress, one of the reasons light refurb bridges draw down faster and cost less than heavy refurbishment facilities.
Yes, refinancing onto a buy-to-let mortgage at the improved value is one of the most common exits. Many investors use light refurbishment bridging to bring a property up to lettable and EPC standard, then refinance and extract their equity for the next project.