Bridging For Refurbishment

Refurbishment Bridging Loans: Fast, Flexible Property Finance

Short-term funding to purchase, renovate, and add value to property

Written: November 2025

What is a Refurbishment Bridging Loan?

A refurbishment bridging loan is a short-term finance solution that funds the refurbishment, renovation, or conversion of a property. It’s often used by property investors, developers, and landlords who want to increase a property’s value before selling or refinancing onto a Buy-to-Let mortgage.

In simple terms, it helps you purchase and improve a property before securing long-term finance or selling for profit. Whether you’re converting a house into an HMO, turning a commercial unit into flats, or giving a tired property a new lease of life, refurbishment bridging loans provide the flexibility to move quickly and keep your project on track.

At GPS Financial, we’ve arranged refurbishment bridging loans across the UK for projects ranging from light cosmetic refreshes to full structural transformations.

Light Refurbishment Bridging Loans

A light refurbishment involves minor improvements that don’t require planning permission or major structural changes. Think new kitchens, bathrooms, flooring, and decoration. These projects are ideal for quick turnarounds where speed and simplicity matter. Because the risk to the lender is lower, rates are usually cheaper, and borrowing can reach up to 85% loan-to-value (LTV).

Heavy Refurbishment Bridging Loans

A heavy refurbishment covers structural or more complex works such as extensions, loft conversions, or anything needing planning consent or building regulations approval. Heavy refurbishment can reach up to 80% LTV, while a refurbishment bridge is typically 75% LTV net day one and up to 100% of the works paid in arrears.

Lenders generally charge higher rates to reflect the added risk and oversight. However, this type of funding can unlock major potential when the end value (GDV) significantly exceeds the purchase price and build costs.

For projects involving mixed-use or commercial property, take a look at our Commercial Bridging Loans page.

Who Can Get a Refurbishment Bridging Loan?

Most people can qualify, from first-time investors to experienced developers or landlords expanding their portfolios. At GPS Financial, we help clients across the UK use refurbishment bridging loans to fund a

 range of projects, from HMO conversions and Buy-to-Let improvements to commercial-to-residential developments.

Real-Life Example: Turning a Tired Property into a Profitable HMO

One of our clients in Swindon purchased a large Victorian property that needed a full internal renovation to meet modern standards. The plan was to convert it into a six-bed fully en-suite HMO under Permitted Development rights, meaning no full planning application was required. Using a heavy refurbishment bridging loan arranged through GPS Financial, the client secured 75% of the purchase price along with funding for the works.

Once complete, the property’s value had increased by more than £250,000 compared with the purchase price. After refinancing onto a specialist HMO mortgage, each room achieved an average rent of around £650 per month, generating a gross monthly income of approximately £3,900 and a strong long-term return. This project shows how a refurbishment bridging loan can help investors transform older properties into high-yield, compliant HMOs efficiently.

How Much Can You Borrow?

Borrowing depends on the project type, build costs, and end value (Gross Development Value or GDV).

• Light refurbishment: Up to 85% LTV
• Heavy refurbishment: Typically 65–80% LTV

Where additional security is available, funding can sometimes reach 100% of purchase and works costs. Every case is assessed individually to make sure the finance is structured around your goals and exit plan.