The Intermediary –- May 2026 - Flipbook - Page 69
SPECIALIST FINANCE
Opinion
ovation finance
Funds are released at agreed points
in the build process, without the
need for interim re-valuations. This
introduces a level of certainty that is
oen absent in bridging scenarios.
From an adviser’s perspective,
that certainty is material. It allows
brokers to map out a clear funding
timeline. They can explain to clients
exactly when capital will be available.
It reduces the risk of project delays
linked to cashflow interruptions.
It also aligns with the expectations
of Consumer Duty by addressing a
known and foreseeable risk embedded
in the funding structure.
Average cost of
renovating a long-term
vacant property:
£95,000
Source: BuildLoan analysis
A light renovation mortgage also
provides the client with a standard
owner-occupier residential mortgage
from the outset, while still funding
the essential works needed to bring the
property up to standard.
For young families and couples who
cannot afford to fund both a mortgage
deposit and a renovation from savings,
this solution opens up renovation
as an option, where it wasn’t an
option before.
Developing beyond defaults
For intermediaries, this creates a
broader advisory toolkit. Rather than
defaulting to a single product type,
brokers can differentiate between
cases where bridging is appropriate
and those where a longer-term
mortgage structure provides a beer
fit. That distinction is not purely
academic. It has direct consequences
for client outcomes, cost profiles and
risk exposure. With affordability still
under pressure, more families are
turning to doer-uppers as a route to a
long-term home. Until now, the only
funding option has oen been shortterm bridging – even when the works
are simply about geing the property
Number of new homes
yet to be delivered under
Labour’s pledge:
1,160,000
Source: BuildLoan analysis
to a habitable standard.
It is now reasonable to question
whether bridging should remain the
default for all renovation cases.
For intermediaries operating under
Consumer Duty, the obligation is
not simply to find a solution, but
to identify the most appropriate
structure for the client’s objectives,
risk profile and timeframe.
None of this is to suggest that
bridging finance becomes redundant.
There may remain scenarios – like
auction purchases – where it is the
correct solution. But it shouldn’t be
the automatic go-to loan. It should be
in the mix.
The broader implication is that
renovation, as a pathway to increasing
usable housing stock, is becoming
more accessible.
By lowering financial barriers and
reducing structural risks, products
like BuildLoan’s Light Renovation
Mortgage range enable more
households to go down the renovation
route. Across the UK, that has the
potential to move the dial in a way that
could finally start to ease the nation’s
housing crisis – and close the gap
between demand and supply. ●
May 2026 | The Intermediary
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