Buy To Let Refurbishment Mortgages

Interested in purchasing a buy to let property in need of renovation? Uncover all you need to know about buy to let refurbishment mortgages and how to finance your next investment project.

Property or loan details

Error: Property must be valued at £50,000 or more.

Error: Estimated rental income must be between £1 and £99,999.

Based on your details, you can borrow up to:

£0

This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.

Buy To Let Refurbishment Mortgages

With changes to tax relief and capital gains tax, the rental property sector needs to innovate and find new ways of generating income from a competitive property market.

One of the fastest ways to create profitability from a property investment is to carry out a refurbishment project. Properties can either be quickly resold at a profit once they have been modernised or can be retained as rental properties, commanding higher prices than before the refurbishment.

Mortgages for refurbishment buy-to-lets

To purchase and refurbish a property, one of the most attractive mortgage options is a refurbishment buy-to-let mortgage.

This type of mortgage covers the cost of purchasing a property and finances the refurbishment to generate a quick profit on the original property value. Refurbishment mortgages tend to be for either light or substantial renovations, and most buy-to-let refurbishment loans are intended for light modifications rather than structural building works.

Most mortgage lenders offering this type of refurbishment mortgage will allow six months for the modernisation work to take place.

Once the upgrade work is completed, the mortgage can be refinanced, and this is typically based on the valuation agreed at the start of the buy-to-let refurbishment mortgage.

For investors, this is a convenient option since the property does not have to be surveyed again, and therefore does not incur double the professional fees.

The initial survey before the mortgage is offered will consider the anticipated value of the property once the refurbishment has been completed, and will assess the likely rental income achievable based on the current property market.

Making buy-to-let properties more valuable

There are multiple options with investment property. Investors might choose to:

  • Refurbish the property and sell it on immediately.
  • Renovate the property and sell it in the future, renting out in the meantime.
  • Modernise the property and retrain it as a rental investment.
  • Reside in the property and renovate it at the same time.

One of the essential factors in choosing a refurbishment design is in catering to customer preferences. A modern layout and design will make a property easier to sell and thus more valuable and simpler to rent out at premium rates.

This often depends on the purpose of the property - for example, a student accommodation might be refurbished to make it an ideal rental property since any subsequent purchase is very likely to be on a let to buy mortgages basis.

It is also important to budget carefully for the modernisation works to avoid spending more on an investment property than it is anticipated to be worth.

Adding the most value to buy-to-let investments

Some landlords opt to add an extension or convert the attic in an investment property. This is a way to add significant value, since creating an extension can create additional bedrooms, larger living space, and other bathrooms.

Property investment - profitable strategies

The reason that buy-to-let refurbishment mortgages have become much more popular is that with rising property prices, landlords have found it increasingly challenging to enjoy the high yield returns they have been used to.

Swift property turnarounds and quick refurbishments can provide an immediate profit. More extension renovations and adding conversions can significantly increase the value and saleability of a property, being a lucrative asset to an investment property portfolio.

Buy-to-let remains a strong investment sector, but taking a smart view as to the long-term performance of the market and where the budget can be spent to maximise the value of a property is essential.

As these mortgages become more competitive and more widely available, we anticipate that the success of the buy-to-let refurbishment market will continue to grow.

Revolution Finance Brokers are a specialist mortgage broker, negotiating bespoke deals on behalf of private, commercial, and business clients.

For independent advice about achieving the most attractive mortgage deals for your investments, give us a call on 0330 304 3040 or drop us an email at info@revolutionbrokers.co.uk.

Why Revolution Brokers?
  • Whole of market brokers

  • Mortgage that suits you

  • On time customer support

Latest Blogs

26 Jan 2022
How Does a Remortgage Application Work?

Most homeowners know that remortgaging means switching a mortgage from an existing lender over to a new deal. However, the process isn't always obvious. If you're on a fixed-rate deal, you'll want to get ahead of the end of the term to avoid being shuffled onto a higher standard variable rate where your interest costs will undoubtedly ..

17 Dec 2021
Understanding Lender Risk on First-Time Buyer Mortgages

Finding a great mortgage as a first time buyer can feel like an uphill struggle, with a larger proportion of applicants being turned down than a year ago. Around 20% of first-time mortgage applicants are rejected, usually because of the lender risk associated with their loan. Today, Revolution Brokers explains the highest risk facto..

28 Oct 2021
Pros and Cons of First Time Buyer Buy to Let Mortgages

Investing in a rental property can be an excellent way to get onto the property ladder and earn an income. However, if you haven't owned a residence before, you might find that a mainstream bank will automatically turn you down for a buy to let mortgage. In today's guide, the Revolution Brokers team explains how you can become a ren..

12 Oct 2021
Mortgage Deposit Requirements for First-Time Buyers

Buying a home for the first time is a massive step - but the deposit is often a stumbling block for first-time buyers. It can take years to save a sufficient amount or be impossible, so there are several ways to approach the problem and get your foot onto the property ladder. From April 2021, the UK government launched the new mortg..

24 Jun 2021
Why Property Auction Finance is Booming!

There is little doubt that UK buyer confidence is at an all-time high. We've recapped previously in our blogs how property market growth and prices have soared over the last few months! As we head into summer, one key area of mortgage finance seems to be expanding rapidly: property auction finance. In this article, the Revolution..

25 May 2021
Property Development vs Buy to Let Investments

Here at Revolution Brokers, we work with thousands of property investors every year. That might be to: Remortgage a portfolio of rental properties. Secure development finance for a new project. Finance a standalone property purchase or multiple acquisitions. Streamline portfolio mortgages for multiple investments. We ofte..

Offer!

Refer, Relax and get £50

If you refer a friend for a mortgage or any
type of finance you’ll both receive £25
each when their new application
successfully completes.

Know More!

We are proud
members of the:

FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

Ask the Mortgage Experts

Revolution Brokers understands that mortgages can be complex and confusing!

Ask us any question you might have, and one of our skilled consultants will come back to you as quickly as possible.