Generally speaking, there are two types of finance for refurbishments, which are classified as light refurbishments or heavy refurbishments.
This ‘light’ type of finance would generally be for quite minor works, such as replacing a central heating system, having a roof fixed, or mainly for works that wouldn’t require planning permission.
These types of works are light in nature and not considered to major renovation works that would require more significant funding for the property and can be completed fairly quickly.
These types of heavy renovation works are generally considered to be anything that might require planning permission or anything that requires work on the structure of the property, such as supporting walls, foundations, or anything similar in nature.
Broadly speaking, it also includes anything that would require an extension or addition to the building itself, or any building works that may need to be done as part of building regulations, such as fire doors, separate bathrooms, or things of that nature.
The classification for this this type of bridging finance is due to the fact that it will mostly take longer than light works and will more than likely require a larger amount of lending.
Benefits of a refurbishment mortgage
A refurbishment bridge, or bridging finance, may also be referred to as a refurbishment mortgage, and again the classification of what type of lending it will be will largely depend on the scale of the works you’re looking to undertake.
If you only require a small or relatively straight forward level of renovation then this would be classed as a light refurbishment mortgage, however, if you’re looking to change the structure of the property or add an extension, this would be a heavy renovation, but this is something we can discuss with you in more detail, and something we can help with.
Most high street lenders won’t lend against properties that need renovations doing before they’re inhabitable, so one great benefit of this type of bridging finance, or specialist mortgage, is that our panel of lenders understand the project you’re undertaking and have designed their lending around you and your needs, meaning they can offer you the terms, amount and rates that you need.
Due to the nature of renovations and refurbishment, most of this type of lending and bridging finance is designed to be flexible in that you can take it for as little as a month, all the way through to 24 months should you require it. All these types of lenders will usually look for from you is a viable exit plan and proof that you’re able to complete your project on time.
More traditional lending can be quite rigid in its terms and rates, in that a lot of these lenders won’t want to lend out to you if you’re looking for a relatively short term loan, however, we’re able to get you access to much more flexible lending.
Speak to our refurbishment loan brokers today
We’ve spent years putting together a team who can discuss all your needs with you and find you exactly the right finance for your situation.
Because we work with a niche panel of lenders we’re confident that no matter what your needs we’ll be able to put you in touch with a lender who’s able to meet those needs and offer flexible terms that work for you.
We’ve also been working with our panel of lenders for years now, so we know that when it comes to getting you the best deals, we’ll always have access to the best, including exclusive rates and offers.
We also understand and appreciate that for many of our clients they need access to capital quickly, and we provide ourselves on working quickly and efficiently to make this process as quick as possible for, which is why we ensure that all our brokers and advisors are able to provide you with the best possible advice.
If you’re looking to talk about bridging finance, a mortgage, or other types of lending, then why not get in touch with us today?