Refurb mortgage: what is it, and can you get one in the United Kingdom in 2026?

A refurb mortgage is a mortgage used when a home needs refurbishment works before it feels finished or ready to rent. The lender checks your affordability, your credit checkA check of a borrower's credit history, which is used by mor..., and the property value, then makes lending decisions based on the property type and your plan.

What is a refurb mortgage and when is a Renovation Mortgage needed?

A refurb mortgage is often a standard mortgage product that still works even when the property needs property refurbishment. Some people call it a Renovation Mortgage or Renovation Mortgage Loan, but the idea is the same: you borrow to buy (or remortgageRefinancing an existing mortgage with a new mortgage.) and you also plan refurbishment works.

A lender will look at:

• Property value today (not just what it could be worth later)
• Whether the home is safe and usable now
• The size and risk of the refurbishment works
• Your affordability and credit check

If the property is not currently habitable, a refurb mortgage can be harder and you may need short-term finance options.

Your home may be repossessed if you do not keep up repayments on your mortgage. The article is updated as of Jan 16, 2026

Planning permissionPermission granted by the local authority for a property to ..., building regulations, and internal reconfiguration

Your refurb mortgage plan should match the rules for your project.

Planning permission

You may needplanning permissionfor:

• Extensions
• Major external changes
• Conversions that change use

Building regulations

You often need  building regulations sign-off for:

• Structural changes
• Electrical work
• Plumbing and heating changes
• Major insulation upgrades

Internal reconfiguration and HMO adaptations

If you are changing the layout (internal reconfiguration) or doing HMO adaptations for a House in Multiple Occupation (HMO), lenders can ask extra questions about safety, licensing, and property types.

Affordability checks, income multiples, and stress testing

A refurb mortgage is still assessed like any other mortgage.

Lenders normally use:

• Affordability calculators (their internal models)
• Income multiples (one part of the assessment, not the whole decision)
• Stress testing (to check you can cope if interest rates rise)

They will review:

• Proof of income
• Outgoings and existing credit
• Bank statementsA record of a borrower's financial transactions often requir... (often from Online Banking or Internet Banking downloads)

Tip: Keep spending steady before a refurb mortgage application process. Sudden new borrowing can affect lending decisions.

Deposit rules, additional security, and second charge mortgage options

A refurb mortgage can need a higher deposit if the home needs significant refurbishment works.

Sometimes, people consider:

• Additional security (another property offered as support)
• A second charge mortgage (borrowing secured on a property you already own)

These options are not right for everyone. The best route depends on an assessment of individual circumstances.

Mortgage products that can support refurbishment works

A refurb mortgage can be arranged as different mortgage products, depending on your goals:

• Fixed rate or variable rate (linked to interest rates)
• Residential or Buy to Let
• Specialist products if the property condition is poor

Expect costs such as:

• Mortgage application fee or application fee
• Valuation fee (sometimes there are separate valuation fees)
• Legal fees
• In some cases, a higher rate due to the risk profile

A lender may instruct a third-party valuer and may require a structural survey if the property has visible issues.

Buy to Let refurb mortgages and the “refurb to let mortgage” route

If you are a landlord, a refurb mortgage is usually judged mainly on the rent and the property.

Estimated rental income and rental calculation

For buy to let refurb mortgages, lenders look at:

• Estimated rental income
• The lender’s rental calculation (often stressed at a higher rate)

Buy-to-let application points

A Buy to Let buy-to-let application often needs:

• A clear refurbishment works plan
• Evidence the property will be lettable
• A sensible exit strategy if the plan is “buy, refurbish, refinance”

Refurb-to-let product wording

Some people search for a refurb-to-let product. In practice, it usually means the same thing: buy, do property refurbishment, then rent out.

HMO refurb mortgage: extra checks for private landlords

An hmo refurb mortgage can involve stricter underwriting because HMOs are specialist property types.

Lenders may ask about:

• Room sizes and safety standards
• Local licensing rules
• Fire doors, alarms, and layout changes (HMO adaptations)
• Your experience as private landlords
• Whether the works change the property’s risk

Bridging loan, bridge finance, and refurbishment bridging loans

If the home is not suitable for a standard refurb mortgage (for example, it is not habitable), people sometimes use:

• Bridging loan or bridge finance
• Refurbishment bridging loans
• Short-term property finance or short-term property finance options

These are usually short-term finance options and need a strong exit strategy, such as:

• Selling the property
• Refinancing the property onto a refurb mortgage or Buy to Let mortgage later

Development finance and refurbishment loans

For larger projects (more like a property developer project), lenders may discuss:

• Development finance
• Refurbishment loans or refurbishment finance

These can involve staged funding (a draw down approach), where money is released in parts as works are completed.

Rolling up interest and interest payments

With some short-term finance:

• Interest can be paid monthly (interest monthly, interest payments)
• Or added to the loan (rolling up interest)

Always check mortgage terms carefully, including fees and processing times. If you are interested, you can also contact our team of specialist mortgage brokers.

Energy-efficient renovation: solar panelsThe presence of solar panels on a property that may affect t..., heat pumps, and EPC points

Many refurb mortgage plans now include energy efficiency upgrades, such as:

• Solar panels
• Heat pumps (including ground source heat pump)
• Better insulation and glazing
• Other renewable energy systems

You may also hear about:

• Energy Performance Certificate and improving the Energy Standard rating
• The Microgeneration Certificate Scheme for certain renewable installations

These upgrades can improve comfort and running costs, and they may help future value. Some suppliers talk about offers such as “C-Change discounts”, but discounts vary and are not guaranteed.

The refurb mortgage application process (simple but complete)

A refurb mortgage application process usually follows these steps:

1. Initial checks with a mortgage broker
   A mortgage broker reviews affordability, credit check, deposit, and property types. They explain likely service levels and expected processing times.
2. Decision and documents
   You provide identification, proof of income, bank statements, and a credit file. Many people download statements from Online Banking or Internet Banking.
3. Valuation and underwriting
   A third-party valuer assesses property value. Some cases need manual underwriting, especially where refurbishment works are complex.
4. Offer and legal work
   The lender issues the offer, then solicitors handle legal fees and checks.
5. CompletionThe point at which a property purchase is finalized and owne... and works
   You complete the purchase or remortgage and start the property refurbishment plan.

Required documents checklist for a refurb mortgage

• Photo identification and proof of addressEvidence of a borrower's current address, such as a utility ...
• Proof of income (employed or self-employed)
• Bank statements (from Internet Banking, Online Banking, or Private Internet Banking exports)
• Credit file for credit check
• Refurbishment works plan, quotes, and timeline
• Planning permission and building regulations evidence (if relevant)
• For Buy to Let: estimated rental income evidence

Why use a mortgage broker for a refurb mortgage?

A refurb mortgage is often declined simply because it is placed with the wrong lender. A whole-of-market mortgage broker can:

• Compare more mortgage products, including specialist options
• Explain valuation fee, application fee, and legal fees clearly
• Help you present refurbishment works and exit strategy in a simple way
• Speed up decisions by packaging documents properly
• Support Buy to Let refurb mortgages and hmo refurb mortgage cases

This is often more effective than going direct, especially for complex property types.

FAQs

Can I get a refurb mortgage if the home needs major work?

Sometimes, but if it is not habitable you may need bridging loan style short-term finance options first, then refinancing the property later.

What fees should I expect on a refurb mortgage?

Common costs include a mortgage application fee or application fee, valuation fee or valuation fees, and legal fees.

Is a refurb to let mortgage a separate product?

Usually it describes the plan. The lender still looks at rental calculation, estimated rental income, and property types.

Is an HMO refurb mortgage harder to get?

It can be, because HMO adaptations and licensing needs more checks and often manual underwriting.

Can energy-efficient renovation help a mortgage?

Energy efficiency upgrades like heat pumps or solar panels can improve the Energy Performance Certificate and comfort, but approval still depends on affordability and the property value.