Further advances for refurbishment finance

A further advance allows you to borrow additional funds from your existing mortgage lender to finance home improvements or refurbishment works. It is often one of the most straightforward and cost-effective ways to raise capital, as it avoids changing lender and usually carries lower rates than short-term finance.

How a further advance works

Your existing lender reassesses the current value of the property and the level of available equity. If sufficient equity exists, the lender may approve additional borrowing to support refurbishment plans. The further advance is secured against the same property and usually runs alongside the existing mortgage, often on a separate interest rate and repayment schedule.

Maximum loan-to-value (LTV) limits

The amount available is driven by the lender’s maximum LTV policy and the overall risk profile:

Residential properties

Some lenders will allow further advances of up to 95% LTV, subject to affordability, credit profile, and the scope of works. This means borrowers may only need to retain as little as 5% equity after the advance, although higher LTVs are typically reserved for stronger cases.

Buy-to-let properties

For buy-to-let, further advances are more conservative, with most lenders capped at around 75% LTV. Affordability is assessed on rental income stress testing rather than personal income, and higher equity buffers are required due to investment risk.