Refurb-to-let finance gives landlords and property investors a seamless path from purchase to rental income. This specialist mortgage product combines a short-term bridging loan with a guaranteed buy-to-let mortgage exit, both underwritten and approved at the start of your project.
Unlike traditional bridging loans where your exit strategy remains uncertain, refurb-to-let provides two mortgage offers upfront—giving you complete certainty and competitive rates throughout your refurbishment journey.
Submit your application with a detailed schedule of works. Your lender underwrites both the bridging loan and the buy-to-let exit mortgage simultaneously, issuing two offers at the outset. The bridging offer is typically valid for 3 months, while the BTL exit offer remains valid for 6 months from the initial valuation.
A surveyor assesses the property’s current condition and projected post-refurbishment value. This determines your bridging loan amount (typically up to 75% LTV of current value) and your exit BTL mortgage (typically up to 80% LTV of the uplifted value).
Funds are released and refurbishment works begin. No monthly mortgage payments are required during this phase—interest is rolled up into the loan. You have the validity period of the BTL offer (usually 6 months) to complete all works.
Carry out the improvement works according to your submitted schedule. This could include new kitchens, bathrooms, addressing EPC requirements, or light structural improvements that don’t require extensive planning permission.
Once works are complete, the property is reinspected to confirm the refurbishment matches your original plans and achieves the expected valuation. For standard refurbishments, no additional inspection fees typically apply.
If the valuation meets expectations and your circumstances haven’t changed, you automatically transition onto your pre-approved buy-to-let mortgage. The bridging loan is repaid from the BTL funds, and you can start generating rental income or move on to your next project.
Refurb-to-let finance is designed for light to medium refurbishment projects.
Eligible works typically include:
Standard Refurbishments
Energy Efficiency Improvements
Light Conversions
What’s Not Included
Refurb-to-let is not suitable for heavy structural works requiring extensive planning permission, ground-up developments, or projects taking longer than 6-12 months.
For these scenarios, consider development finance or heavy refurbishment bridging instead.
The Scenario: Sarah spotted a three-bedroom terraced house at auction for £100,000. The property had an EPC rating of F and needed a new kitchen, bathroom, and rewiring before it could be let.
The Solution:
The Result: Sarah repaid the bridging loan, released £45,000 in equity, and now generates steady rental income while planning her next project.
The Scenario: David, an experienced landlord, found a two-bedroom flat for £180,000 that needed cosmetic updates to maximise rental yield.
The Solution:
The Result: David increased the property value by £40,000, secured a competitive BTL rate, and added another high-yielding asset to his portfolio.
The Scenario: Emma purchased a large Victorian house for £200,000 with plans to convert it into a 5-bedroom HMO.
The Solution:
The Result: Emma transformed an underutilised property into a profitable HMO, significantly increasing both property value and rental yield.
Both your bridging finance and BTL exit mortgage are approved upfront, eliminating uncertainty about your refinancing strategy and locking in your long-term interest rate before works begin.
Your exit BTL mortgage is based on the property's projected post-refurbishment value, not its current condition—allowing you to access more capital than standard bridging or BTL products alone.
Bridging rates start from as low as 0.64% per month, with BTL exit rates from 5.44%. These combined products often offer better overall terms than arranging separate bridging and BTL deals.
Interest on the bridging loan is typically rolled up, meaning no monthly payments are due during the refurbishment phase—preserving your cash flow for the works themselves.
One application, one lender, one set of legal fees, and potentially just one valuation—saving you time, admin, and money compared to arranging bridging and BTL separately.
Available for single dwellings, HMOs (up to 6 rooms), and multi-unit freehold blocks (MUFBs), in personal ownership or through limited companies.
* Fees lower than a bridge – remortgage would normally be.
Refurb-to-let finance suits:
Lenders typically assess:
At Acorn.finance, we specialise in complex property finance scenarios and have access to specialist lenders offering refurb-to-let products with competitive terms. Our expert brokers:
Whether you’re a seasoned developer or a first-time landlord with a vision, we’ll help you secure the finance you need to transform unlettable properties into profitable rental assets.
Ready to unlock the potential of your next refurbishment project? Contact Acorn Finance for a free, no-obligation consultation. Our team will assess your plans, explain your options, and connect you with the right lender to make your property investment goals a reality.
Call us today or complete our online enquiry form to discuss your refurb-to-let requirements.