What are property refurbishment loans?

Property refurbishment loans are a type of financing that is designed specifically to fund renovations and upgrades to existing properties. These loans are typically used by property developers, investors, and homeowners who are looking to improve the value and functionality of their properties.

Refurbishment loans can be used for a wide range of refurbishment projects, including minor upgrades such as cosmetic changes to the property, or major renovations such as structural alterations, rewiring, or plumbing.

At Mercantile Trust, we aim to help those looking to refurbish their property. Whether you are looking to raise capital for a smaller project such as fitting a kitchen or if you are looking to fund a larger project such as adding an extension to your property, we could help. We provide loans that help with light and heavy refurbishment.

What are the benefits of property refurbishment loans?

One of the key benefits of refurbishment loans is that they can help to increase the value of the property. By making improvements to the property, investors and homeowners could increase the sale value or rental income of the property. In addition, refurbishment loans can help to improve the functionality and habitability of a property, which can make it more attractive to potential tenants or buyers.

What types of refurbishment loans are there?

There are a number of different types of refurbishment loans available, including unsecured personal loans, secured loans, and bridging loans.

An unsecured loan allows you to borrow money without having to provide any collateral as security. However, the amount you can borrow tends to be lower and they typically have higher interest rates than other types of loans that may not be suitable for larger refurbishment projects.

Secured loans, on the other hand, are loans that are secured against the property. These loans typically have lower interest rates than unsecured loans, as the lender has the security of the property as collateral.  Usually you are able to borrow up to £250,000 but this is dependent on the mortgage lender and their criteria. At Mercantile Trust, you can borrow up to £500,000 for a property refurbishment loan.

Bridging loans are another type of refurbishment loan that is commonly used by property developers and investors. These loans are typically used to bridge the gap between the purchase of a property and the sale of an existing property. Bridging loans can be used to fund refurbishment projects, as well as other types of property development projects.

What do lenders consider when applying for a property refurbishment loan?

When applying for a refurbishment loan, there are a number of factors that lenders will consider. This includes the borrower's credit history, the value of the property, the scope of the refurbishment project and the borrower's ability to repay the loan.

What do I need when withdrawing a property refurbishment loan?

To increase the likelihood of obtaining a property refurbishment loan, borrowers should provide a detailed refurbishment plan, including a breakdown of the costs and a timeline for the project. Lenders will also want to see that the borrower has the necessary experience and expertise to carry out the refurbishment project successfully.

In addition, borrowers should ensure that they have a realistic budget in place, and that they have accounted for any unexpected costs that may arise during the project.

How are property refurbishment loans useful?

Overall, property refurbishment loans can be a valuable tool for property developers, investors, and homeowners who are looking to improve the value and functionality of their properties. By providing funding for refurbishment projects, these loans can help to increase the sale value or rental income of a property, while also improving its livability and attractiveness to potential tenants or buyers.

Mercantile Trust could get you the property refurbishment loan you need in just a matter of days. We always aim to help fund every type of refurbishment, regardless of the size.

If you are looking for a property refurbishment loan, simply call our our freephone number above and you will be connected directly to one of our experienced advisors.

Enquiring is easy

It takes 30 seconds.

Simply fill out the form above, or call us to discuss your needs now.

Our team of experts are there for you.

You'll deal with the same experienced advisor throughout your enquiry.

We can get you the funds you need, fast.

You could get a lending decision in just one call.

Our flexible approach


We are proud to be a lender who can deliver loans at a fast approach, to consumers. We make this possible by carrying out our own legal checks, in house for loans under 100k, within hours. We can offer automated valuations, which are available to produce financial solutions in an instant.

Mercantile Trust regularly help their customers carry out renovations with heavy refurbishment loans, by providing finance fast.

No minimum income

At Mercantile Trust, we put our customers at the forefront of what we do.

We offer top slicing, where we can use your personal income when carrying out affordability calculations. If your rental income does not cover your mortgage repayments, we will top up the remaining amount that you cannot cover so you are able to get the loan you require.

No Exit Fees

We want you to be in control of your finance.
With no early repayment or exit fees, Mercantile Trust will strive to find a loan to meet your financial requirements.

Our bridging loan criteria

We aim to help absolutely everyone, however there are certain criteria that must be met in order to make a successful application:

  • Unregulated bridging applications only
  • Rates from 0.99%
  • Up to 75% loan to value
  • Most property constructions accepted
  • No personal income requirement
  • No exit fees
  • Minimum property value £75k
  • Minimum advance £25k max £500k
  • Confirmation of exit required
  • Minimum of one buy to let or residential property required
  • Serviced and rolled interest available
  • No ERC (Early Repayment Charge)
  • First and second charge available