Fund the purchase and renovation of residential or commercial property. Whether it's a cosmetic update or a full structural refurbishment, we have a solution that moves as fast as you do.
A refurbishment bridging loan is a specialist form of short-term property finance designed for borrowers who want to acquire a property that needs work — and either sell it at a higher value once works are complete, or refinance onto a long-term mortgage product.
Unlike a standard residential bridging loan, which is typically used to bridge a transaction gap, a refurbishment bridge is specifically structured around a works programme. It can fund the purchase price on day one and, where appropriate, release additional tranches of capital as works progress and are independently verified — a mechanism known as staged drawdowns.
Standard mortgages will not lend on uninhabitable property and cannot accommodate significant renovation works within their structures. Refurbishment bridging fills this gap, providing the short-term capital needed to complete the project and unlock the asset's full value. AF Credit offers both light and heavy refurbishment bridging, with rates from 0.85% per month, loans from £26,000 to £2 million, and same-day indicative terms. We lend on residential and commercial assets across England and Wales, considering adverse credit on a case-by-case basis.
Cosmetic redecoration through to structural works, loft conversions, and making uninhabitable properties habitable from a derelict state.
For heavy works, funds can be released in tranches as each stage completes — so you only pay interest on capital you have drawn.
On heavy refurbishment projects we can lend up to 75% of the Gross Development Value — the end value once works are complete.
No monthly repayments during the works — interest rolls up and is repaid in full when you sell or refinance at the end of the term.
The distinction between light and heavy refurbishment affects how the loan is structured, what it can be lent against, and the rate you pay. Understanding the difference is key to getting the right facility for your project.
From 0.85%/month · 3–9 months · 75% LTV
Cosmetic and non-structural improvements that enhance the property's condition and saleability without altering its fundamental structure. Day-one advance based on current open market value.
From 0.89%/month · 9–18 months · 75% GDV
Significant structural works that change the property's layout, size, or habitability. Typically funded via staged drawdowns against Gross Development Value, with tranches released as works are inspected and signed off.
Refurbishment bridging is used by property investors, developers, and individuals across a wide range of project types — from simple cosmetic flips to full structural redevelopments.
Purchase a tired or below-market-value property, carry out light or heavy refurbishment to add significant value, then sell at the improved price and repay the bridge from the proceeds.
Acquire a property that needs updating, carry out the works to bring it to a lettable standard, then refinance onto a buy-to-let or commercial mortgage once the property generates rental income.
Standard mortgages won't lend on a property without a working kitchen or bathroom. A refurbishment bridge can fund the purchase and the full works programme, with exit onto a standard mortgage once the property is habitable.
Fund the purchase and conversion of a commercial unit to residential use — whether via permitted development rights or full planning consent. Staged drawdowns fund the conversion works as they progress.
Convert a standard residential house into a licensed House in Multiple Occupation to maximise rental yield. Fund the purchase and reconfiguration works with bridging, then refinance onto a specialist HMO buy-to-let mortgage.
Raise capital against a property you already own to fund an extension or loft conversion that will add significant value, then sell or refinance at the improved GDV once works complete.
Staged drawdowns are a key feature of heavy refurbishment bridging. Rather than releasing the full loan amount on day one, funds are advanced in tranches as your project progresses — reducing your interest cost and providing the lender with appropriate security at each stage.
At completion of the property purchase, AF Credit releases the initial tranche — typically based on a percentage of the current open market value. This covers the purchase price and any associated acquisition costs.
Your contractor begins the agreed works programme. A monitoring surveyor appointed by the lender tracks progress at key milestones — providing independent verification that each stage has been completed to the required standard.
Once the monitoring surveyor confirms a stage is complete, the next tranche of funds is released by AF Credit. You pay interest only on the capital drawn to date — not on the full facility — which helps manage the overall cost of finance during the works period.
Once all works are complete and verified, the final tranche is released if applicable. You then execute your exit strategy — either selling the property at the improved GDV, or refinancing onto a long-term buy-to-let, residential, or commercial mortgage product.
Need to fund works without a full staged drawdown structure? We also offer no-valuation bridging options for lighter projects where speed is the priority.
Our standard parameters for refurbishment bridging finance across England and Wales. Every case is assessed individually — speak to us about your specific project.
| Criteria | Light refurbishment | Heavy refurbishment |
|---|---|---|
| Maximum LTV / GDV | 75% of current value | 75% of GDV |
| Rates from | 0.85% per month | 0.89% per month |
| Loan range | £26,000 – £2,000,000 | |
| Loan term | 3 – 9 months | 9 – 18 months |
| Interest method | Retained (rolled up and repaid at exit) | |
| Drawdown structure | Day-one advance | Staged drawdowns |
| Property location | England and Wales | |
As a direct principal lender, we make our own credit decisions — no committees, no brokers, no delays. We understand project timelines, the realities of works programmes, and the importance of funds arriving when your contractor is ready to proceed.
Light refurbishment covers cosmetic and non-structural works — fitting a new kitchen or bathroom, redecoration, new flooring, electrical and plumbing updates. The loan is advanced on a day-one basis against the current open market value, typically for terms of 3 to 9 months, from 0.85% per month. Heavy refurbishment involves structural works — extensions, loft conversions, internal reconfiguration, change of use, or restoring an uninhabitable property to habitable standard. Heavy refurb loans are typically structured with staged drawdowns against the Gross Development Value (GDV), run for 9 to 18 months, and start from 0.89% per month.
On a heavy refurbishment loan, AF Credit makes an initial advance at the point of purchase, based on the current value of the property. As works progress, a monitoring surveyor inspects and verifies each completed stage. Once a stage is signed off, the next tranche of funds is released. This continues until all agreed works are complete and the final drawdown is made. Because you only pay interest on capital drawn — not the full facility — staged drawdowns help manage the overall cost of your refurbishment finance throughout the project.
Yes. On a heavy refurbishment loan structured with staged drawdowns, AF Credit can provide a facility that covers both the purchase price on day one and subsequent tranches to fund the works as they are completed and inspected. The total facility is typically sized against a percentage of the Gross Development Value. On light refurbishment, the initial advance is made against the current open market value and is generally used to cover the purchase price. Speak to our team to discuss how your specific project can be structured.
GDV stands for Gross Development Value — the estimated open market value of the property once all agreed refurbishment works are complete. On heavy refurbishment projects, AF Credit can lend up to 75% of GDV rather than 75% of the current value, which allows you to access significantly more capital than a standard LTV calculation would permit. A RICS-qualified valuer will assess and confirm the GDV based on comparable evidence and the agreed scope of works. The credibility and detail of your works schedule directly affects the GDV assessment.
For light refurbishment, AF Credit lends up to 75% of the current open market value on a day-one basis. For heavy refurbishment with staged drawdowns, we can lend up to 75% of the Gross Development Value (GDV) — the projected end value once works are complete. The actual LTV offered will depend on the property, the scope of works, the loan size, and the clarity of the exit strategy. Speak to us about your specific project for a case-specific illustration.
Yes. AF Credit lends to both individuals and limited companies, including Special Purpose Vehicles (SPVs). Whether you are an individual investor carrying out your first refurbishment project, a portfolio landlord operating through a company, or an experienced developer with multiple sites, we can consider your application. The structure of the loan — individual or corporate — will depend on your own circumstances. Speak to our team to discuss the most appropriate approach for your situation.
AF Credit provides same-day indicative terms on qualifying refurbishment bridging enquiries — call us on 01451 514 563 or submit an online enquiry. Once you decide to proceed, we can instruct solicitors within 12 hours of a credit decision. On straightforward light refurbishment cases, completion can be achievable within 5 to 10 working days. Heavy refurbishment cases, particularly those involving staged drawdown structures and full valuations, may require additional time to set up correctly, but we always move as quickly as the project and legal process allows.
Yes — this is one of the most common uses of refurbishment bridging finance. Standard mortgage lenders will not lend on a property without a working kitchen and bathroom. AF Credit can fund the purchase of an uninhabitable or derelict property and, where appropriate, provide staged drawdowns to fund the works required to bring it to a habitable standard. Once works are complete and the property meets standard lender criteria, you can refinance onto a buy-to-let, residential, or commercial mortgage product. Visit our no-valuation bridging page for information on fast-track valuation options.
Refurbishment bridging is one of several short-term finance solutions available from AF Credit. Explore related products below.
Get same-day indicative terms on your refurbishment bridging enquiry — light or heavy, residential or commercial. Call our team or submit an enquiry online.