Renovation projects are booming in 2025. Whether you’re upgrading your home, flipping an investment property, or modernising a buy-to-let, one question always comes up:

How do you fund it—without draining your savings?

In this blog, we’ll walk you through the most effective ways to finance renovations in today’s market, with real-world examples and lender insights.

🔍 Why Renovation Projects Are on the Rise

Several key trends are driving the renovation wave this year:

• 🏡 High property prices mean more people improve rather than move
• 🔨 Energy efficiency mandates make upgrades essential
• 🛋️ Buy-to-let investors are refurbishing to command higher rents
• 💸 Equity-rich homeowners are tapping into rising values to improve their living space

But the right funding makes all the difference between a successful upgrade—and a stalled project.

💷 Option 1: Remortgage to Release Equity

If your property has increased in value, a remortgage could allow you to access that equity and fund improvements.

How it works:

• Lender revalues your property
• You borrow more against the new value
• Funds are released upon completion (sometimes in stages)

📌 Best for: Homeowners or landlords with solid equity and good credit
📉 Downside: Takes time, and rates may be higher than before

🚀 Option 2: Bridging Finance for Fast Projects

A bridging loan is a short-term, interest-only facility designed for fast completion and quick resale or refinancing.

Features:

• Funds in days
• Based on asset value, not income
• Often used when properties are uninhabitable or unmortgageable

📌 Best for: Flips, auction purchases, heavy refurb projects
⚠️ Watch out for: Higher costs—best used for short-term strategy

🌱 Option 3: Green Home Improvement Loans

With the UK focused on Net Zero goals, many lenders now offer green finance products tied to energy-efficient upgrades.

These include:

• 🪟 New windows and insulation
• ☀️ Solar panels or heat pumps
• 💡 Smart energy systems

📌 Best for: Projects that will improve EPC rating
🏷️ Perks: Lower rates, cashback, or improved borrowing terms

👨‍👩‍👧‍👦 Option 4: Family or JV Partnership Funding

In some cases, renovation finance is supported via informal agreements:

• Family loans or early inheritance
• Joint ventures (JVs) where one party provides capital, the other labour or planning

📌 Best for: Trusted partnerships with clear exit plans
📝 Important: Get legal agreements in place

🧠 Option 5: Second Charge Mortgages

A second charge loan allows you to borrow against your property without remortgaging the original mortgage.

Benefits:

• No need to disturb your current low-rate mortgage
• Can be used for any legal purpose, including home improvement

📌 Best for: Homeowners with good equity but locked into a great first charge rate
💡 Tip: Rates may be higher, but flexibility is key

🧮 Real-World Example

Emma bought a 3-bed fixer-upper in Brighton for £310,000. It needed £60,000 of work.

• Her broker arranged a bridging loan of £85,000 to cover both the refurb and some holding costs.
• The project took 5 months, and she refinanced onto a buy-to-let mortgage at the new £415,000 valuation.

💰 Net uplift: £40,000 equity after costs.

✅ How Willow Can Help

At Willow Private Finance, we regularly arrange renovation finance across:

• Residential refurbishments
• HMO conversions
• Buy-to-sell projects
• Energy upgrades to boost EPC ratings

With access to the whole of market, we’ll find the right structure—remortgage, bridging, second charge, or green loan—to match your plans.

📞 Want Help Navigating Today’s Market?

Book a free strategy call with one of our mortgage specialists.

We’ll help you find the smartest way forward—whatever rates do next.