We’re excited to introduce the Refurbishment Term Loans, a unique solution designed to support advisers working with clients on property improvements. As the only mortgage network and packager offering access to this exclusive product, we provide a competitive edge for advisers seeking to expand their services. This tailored loan product reflects our commitment to delivering innovative finance solutions that meet your clients’ evolving needs.

Many property investors use bridging finance as initial funding for refurbishment projects, especially when purchasing at below-market value or when fast completion is required. If you’re unsure which short-term option fits your needs, explore our Bridging Finance solutions.

Why is this offer different?

Previously, clients seeking funds for refurbishment often had to rely on a bridging loan, which carried uncertainty. There was no assurance they could remortgage after the work was completed, or secure favourable terms from a lender. It also meant submitting two separate loan applications, increasing time and complexity.

Today, a Refurbishment Term Loan offers a more streamlined solution. Clients can access a 5-year second charge mortgage from day one, based on the projected value of the refurbished property. A portion of the loan is retained by the lender and released upon project completion and occupancy, eliminating the need for bridging finance. For advisers working with complex cases, this may align well with support from our Specialist Mortgage Network for Advisers.

Why Advisers and Clients Choose Second Charge Mortgages

Second charge mortgages offer key advantages that streamline the borrowing experience:

• Single set of legal fees – Clients save both time and money with simplified legal requirements.

• Faster completion – Speedy processing, minimal documentation, and efficient workflows help clients secure funding quickly.

• Flexible for complex cases – Unlike other lenders, specialist mortgage networks for advisers understand and accommodate complex property types and client profiles.

• No second loan delays – Removes the stress of reapplying for additional funding post-refurbishment, making project planning more predictable.

Ideal for These Scenarios

Second charge loans are a smart solution for:

• Experienced landlords – Those with at least three buy-to-let properties owned within the last 12 months.

• Standard and specialist properties – including residential units, HMOs, and MUFBs (up to six units).

• Equity-driven borrowing – Where additional security is available to increase the loan size and access greater funding flexibility.

All you need to know

If your project extends beyond refurbishment to structural changes or new construction, you may need a different type of funding. In these cases, Development Finance may be more suitable than a standard refurbishment loan.

Light Refurbishment vs Heavy Refurbishment: What’s the Difference?

Understanding the difference between light and heavy refurbishment is crucial when applying for property finance, as lenders assess the level of work to determine loan type, risk, and structure.

What Is Light Refurbishment?

Light refurbishments are non-structural upgrades that enhance a property’s aesthetics or functionality without altering its core layout. These typically include:

• Repainting or redecorating

• Kitchen and bathroom replacements (like-for-like)

• Flooring upgrades

• Electrical re-wiring (non-structural)

• New windows or doors

• Cosmetic repairs

Key points:

• No change to internal walls or layout

• No planning permission or building regulations required

• Faster turnaround and lower cost

• Often funded by a standard refurbishment term loan or initial bridging finance

What Is Heavy Refurbishment?

Heavy refurbishment involves structural work or changes that significantly alter the property’s layout, use, or foundations. These works may include:

• Rear or loft extensions

• Converting a single property into multiple units (e.g. flats or HMOs)

• Removing or moving load-bearing walls

• Basement digs

• Roof replacements

• Change of use (e.g. commercial to residential)

Key points:

• Requires planning permission or building regs approval

• Involves higher risk and longer project times

• Often needs development finance or a more specialist loan facility

• Valuation and funding typically staged based on work completed

Choosing the Right Finance Based on Project Scope

When determining which finance route suits your project:

• For cosmetic upgrades, a light refurbishment loan is usually sufficient.

• For structural or regulatory work, a heavy refurb classification applies, and you may need a mix of bridging, refurbishment, or development finance solutions.

If in doubt, our advisers can guide you through funding options tailored to your project’s scale. We’ll also help align your exit strategy, whether that’s resale or a long-term buy-to-let mortgage.

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