| Rate from | 0.65% pm |
|---|---|
| Max LTV | 75% |
| Term | 3–18 months |
| Drawdown | Day 1, full |
What Counts as Light Refurbishment?
Light refurbishment covers any cosmetic or non-structural works that do not require planning permission. Lenders classify the following as light:
Works not included under light refurbishment: structural walls removed, extensions built, loft conversions, basement excavations, or change of use. These fall under heavy refurbishment bridging.
Rates and Terms
| LTV Band | Rate (per month) | Term | Notes |
|---|---|---|---|
| Up to 60% purchase | 0.65–0.75% | 3–12 months | Lowest rates available |
| 60–70% purchase | 0.70–0.85% | 3–18 months | Standard pricing |
| 70–75% purchase | 0.80–0.95% | 3–18 months | Higher LTV premium |
| Up to 70% of GDV | 0.75–0.90% | 6–18 months | Day 1 GDV lending available |
How the Loan Works
You complete on the property purchase (or refinance of an existing property) and draw the full loan amount on day 1. Unlike development finance or heavy refurbishment, there is no staged drawdown - all funds are available immediately, allowing you to instruct contractors from day one of ownership.
During the loan term, you pay interest monthly (or it rolls, depending on the product you choose). Once the works are complete, you exit via sale or refinance onto a buy-to-let or residential mortgage. Most light refurbishment projects complete within 3 to 6 months, well within the typical 12–18 month loan term.
A Typical Light Refurb Deal
You purchase a tired 2-bed flat for £180,000. Light refurbishment costs £20,000. After works the flat is worth £240,000. With a 75% LTV light refurb bridging loan, you borrow £135,000 against the purchase price (75% of £180,000). You fund the works from your own capital and exit by remortgaging onto a buy-to-let product once works complete - now at a much lower LTV against the £240,000 value.