Bridging finance for structural repairs

Fix first, finance smart: why bridging suits structural repairs

When a survey flags subsidence, a failing roof, or urgent wall ties, time is not on your side. Structural problems rarely wait for a traditional mortgage to complete. Short-term bridging finance gives you the speed to act now, stabilise the property, and protect its value while you line up your long-term solution. In practical terms, bridging lets you purchase or draw funds quickly, complete critical works, and then repay from sale proceeds or a remortgage once the property is mortgageable again.

In the UK, bridging is increasingly mainstream. Industry forecasts indicate aggregated loan balances could rise by roughly 44% by 2027, with most lenders expecting higher origination volumes in 2025. Institutional funding remains strong, which typically translates into competitive pricing and healthy appetite for quality projects. For borrowers, that means more choice and faster decisioning.

The reality at site level is simple: a short-term loan can prevent a small defect becoming a costly rebuild. We regularly see clients use bridging for urgent structural repairs, halting deterioration and preserving value. Heavy refurbishment bridging products are specifically built for projects with structural elements or where costs exceed around 25% of the property value. Rates for heavy works start from around 0.99% per month with up to 75% loan-to-value depending on security and experience. For lighter, non-structural refurbishments, products often start from about 0.84% to 1.25% per month with different limits and metrics, such as caps on total works for light refurb and up to 65% of gross development value.

Speed matters too. Average completion times have fallen in the UK, with recent figures indicating around 52 days from application to completion on many cases. Auction purchases can complete even faster to meet 28-day deadlines, with loans available from roughly £50,000 up to several million and up to 70% LTV. Adverse credit can be considered if the exit is credible. The path is clear: fund the works quickly, create a safer, more valuable property, then refinance to a buy-to-let or sell.

Who benefits from this type of finance

If you are purchasing a property that is unmortgageable due to its condition, bridging can be the pragmatic route to ownership and repair. Investors tackling heavy refurbishments, landlords improving EPC ratings to secure better long-term products, and auction buyers facing tight deadlines all benefit. Homeowners managing urgent structural issues may also use bridging to stop damage progressing while arranging a remortgage.

This approach suits those with a defined plan: clear scope of works, realistic budget, and a credible exit strategy such as sale or remortgage. If you need funds swiftly, expect works to add value, and can evidence the route to repayment, bridging provides the speed and flexibility mainstream mortgages cannot match during structural repairs.

Your financing options

1. Light refurbishment bridging - non-structural works, typically capped at around £100k, pricing from roughly 0.84% to 1.25% per month, often measured against GDV up to around 65%.

2. Heavy refurbishment bridging - structural works or costs above roughly 25% of property value, rates from about 0.99% per month, LTV up to 75%, minimum loans from around £150k, terms 3 to 12 months.

3. Auction bridging - fast completions within 28 days, loan sizes roughly £50k to £3m, up to around 70% LTV, terms 1 to 12 months, suitable for flips and quick refurbishments.

4. EPC upgrade bridging - fund energy-efficiency improvements that unlock higher valuations and access to green remortgage options, aligning with evolving UK lending criteria.

5. Development exit or refinance bridge - stabilise cashflow post-works, then refinance to buy-to-let or term mortgage when lettable and compliant.

Costs, impact, returns and risks

Who is likely to be eligible

Eligibility depends on the property, works, borrower profile, and exit strategy. Lenders will assess the scale of repairs, the planning position for structural changes, and whether the property will be mortgageable after works. For light refurbishments, lenders often look for non-structural improvements such as kitchens, bathrooms, and cosmetic upgrades. Heavy refurbishment requires a robust schedule of works, qualified contractors, and evidence of permissions for structural elements. Experience helps but is not always essential if the team and professional reports are strong.

Expect to provide a realistic cost plan, timescales, and an exit strategy such as sale, remortgage to buy-to-let, or long-term term finance. LTVs up to about 75% are typical for heavy refurb bridging. Auction purchases can be supported at speed where valuation and legal packs align. Energy-efficiency improvements can bolster the refinancing case, particularly where EPC upgrades enhance lender appetite and product choice.

Kandoo is a UK-based retail finance broker. We work with a panel of specialist lenders to locate options for properties that are unmortgageable in their current state. Our role is to assess feasibility, highlight competitive offers, and coordinate the process so the funding completes in time for your build programme.

The process in simple steps

1. Share your property details and repair scope.

2. We assess affordability, timescales, and exit plan.

3. Obtain indicative terms and required documents.

4. Valuation and legal work start in parallel.

5. Lender issues offer, you review and sign.

6. Funds draw down to start structural works.

7. Project monitored against the agreed schedule.

8. Exit via sale or remortgage on completion.

Key positives and trade-offs

What to check before you commit

Before proceeding, be clear on your full cost picture. The monthly rate is only part of the equation - arrangement fees, legals, valuations, and potential exit fees all affect your bottom line. Build a contingency for works and time; planning approvals, specialist reports, and contractor availability can delay completion. If you are buying at auction, scrutinise the legal pack and ensure the valuation assumptions align with your schedule of works.

Think through your exit strategy in detail. If you plan to remortgage to buy-to-let, ensure the forecast EPC rating and rental coverage match lender standards. If selling, allow for conveyancing timelines and market conditions. Completion times have improved, with many cases finishing in around 52 days, but fast does not mean rushed. Good preparation helps secure sharper pricing and higher LTVs, keeping your project resilient.

Alternatives if bridging is not right

1. Secured homeowner loan for non-structural improvements with longer terms.

2. Remortgage with retention - release funds post-works if mortgageable.

3. Development finance for ground-up or major structural programmes beyond refurb scope.

4. Joint venture or private investor funding to share risk and capital.

5. Personal savings or staged contractor terms to reduce borrowing.

Frequently asked questions

Q: What counts as heavy refurbishment? A: Projects involving structural changes or where works exceed around 25% of the property value. Examples include underpinning, steelwork, major wall alterations, or reconfigurations needing structural sign-off.

Q: How quickly can I complete? A: Many cases complete in roughly 4 to 8 weeks, with recent averages near 52 days. Auction cases may complete faster to meet 28-day deadlines when legals and valuations are straightforward.

Q: What LTV can I expect? A: Up to around 75% LTV for heavy refurb and up to about 70% for auction purchases is common, subject to valuation, borrower profile, and the exit strategy strength.

Q: Do I need experience for structural projects? A: Experience helps, but lenders can accept first-time investors if the professional team is credible, the schedule of works is robust, and the exit is realistic and evidenced.

Q: Can bridging help with EPC upgrades? A: Yes. Bridging can fund insulation, heating, windows, and other improvements, often increasing value and enabling access to green mortgage products at refinance.

Q: What are typical interest rates? A: Light refurb products can start from roughly 0.84% to 1.25% per month. Heavy refurb tends to start from around 0.99% per month due to structural risk and higher complexity.

How Kandoo helps you move quickly

Kandoo connects you with a panel of UK specialist lenders for light, heavy, and auction bridging. We benchmark rates, LTV, and fees, test your exit plan, and coordinate valuation and legal processes to meet your timeline. If you need to act quickly on structural repairs, we help you secure funding aligned to your scope and goals.

Important information

This article is for information only and is not personal advice. Finance is subject to status, affordability, valuation, and lender criteria. Terms, rates, and LTVs can change. Always seek independent legal and tax advice before committing to any loan or property transaction.