The smarter way to fund refurbishments – from start to finish

Refurbishment remains a popular strategy for property investors aiming to boost value. From cosmetic updates to large-scale structural works, the right project can offer strong returns, but only when backed by suitable finance.

Traditionally, bridging loans have played a key role in this space, providing short-term funding for both the purchase and improvement of a property. However, as refurbishment plans become more ambitious and timelines less predictable, borrowers are increasingly exploring funding options that offer greater flexibility and control.

Revolving Credit Facilities

Revolving credit facilities are one such option. Rather than releasing the full loan at the outset, they allow borrowers to draw down and repay funds in stages, often in line with how the refurbishment work progresses. This staged access to capital can help match finance more closely with real-time costs, whether that’s paying contractors in instalments, sourcing materials at different stages, or covering unplanned expenses midway through a build.

One of the main advantages of revolving credit is that interest is typically only charged on the amount actually drawn down, not the full facility. This can make it more cost-effective than traditional bridging loans, which tend to charge interest from day one on the total loan. In practice, this can reduce the overall cost of finance, especially on projects where funds are used gradually rather than all at once.

Heavy Refurbishment Projects

This type of facility can be particularly useful for heavier refurbishment projects that involve multiple stages of work, such as structural changes, loft conversions or extensions. Timelines on such projects can often shift due to planning, supply chain issues or changes on site. Having access to finance that reflects the pace of the project, rather than being fixed from day one, can offer greater breathing space.

Light Refurbishment Projects

Revolving credit can also support lighter refurbishments, giving borrowers more control over how they fund each phase without locking them into rigid structures. Many facilities are available on either a first or second charge basis and can be secured against residential or commercial property. Loan sizes typically start from around £250,000 and can run into the millions, with terms of up to two years or more, depending on the lender.

Beyond refurbishment, these facilities are increasingly being used for other purposes too, including auction purchases, land acquisitions, and part-completed developments.

For brokers, having a good understanding of how revolving credit facilities work can make all the difference. By identifying when they might be more suitable than traditional options, brokers can offer clients flexible funding structures that support both the project and the bottom line.

Our Alternative Overdraft Facility is a Revolving Credit Facility – to find out more about how it can help your client’s future refurbishment project, don’t hesitate to get in touch.

Jonathan Rubins is Chief Commercial Officer at Alternative Bridging Corporation

Read the article here in NACFB Magazine