Remortgages For Property Development

We make finding a bespoke remortgage simple. Financing options are available for nearly all situations.

Building Project Remortgage interest rates from 4.89% fixed for at least two years, and subsequent rates are also low at this time and negotiable. From February 2026, We have 6 new lenders for more specialised remortgage products.

Offers are limited, so please complete our short form with your details. As demand increases, the lender’s criteria will become stricter.

Many home improvement projects qualify for a remortgage suitable for customers with residential mortgages. However, much of the broader market for property development loans is structured around business customers, including property developers, landlords, and investors.

Due to restrictions on residential borrowers, navigating the available funding options for homeownership development can be a minefield.

Residential remortgages are available, and there’s a wide choice with very flexible lending criteria, perfectly suited to significant developments on your current property. Therefore, finance will not prevent you from upscaling your home by installing a conservatory, a loft conversion, or adding a single- or double-storey extension to the front, rear, or side of your property.

Obtain planning permission or advice.

When planning any developments on your property, you should contact the planning department at your local council to find out if you require planning permission before starting the project. For double-storey extensions, you will almost certainly need planning permission.

Costings and Finance Options for Your Development Project

Heavy Refurbishment Finance

This type of mortgage is the most challenging to obtain for residential homeowners. There is a lot more cost involved, and the lender will want evidence of experience from past development projects. It’s primarily suitable for developers and those with a commercial interest in the property, which makes it difficult for homeowners to tap into this line of funding.

It is still possible, provided a realistic schedule of work backs up sufficient evidence of projected costs. The figures supplied as estimates will usually need to be verified by a lender’s valuation expert to ensure the program of works can be completed and that all tasks can be finalised within the proposed budget. If you are only part-financing the project through a remortgage, the lender should be aware of your total budget.

Before you are considered for a remortgage on the basis that funds are released to fund a property development, lenders will require documented evidence of costings and a detailed plan, accompanied by a timescale for stages of the development being completed by, if that’s applicable, such as for a large extension, which can require lenders to be updated on the development progress.

However, that isn’t always the case with specific developments, and it depends on the type of loan you take out, which has different terms and conditions.

The Costs That Should Be Factored Into Larger Development Projects On Your Property Include:

Trade Quotes From:

Electricians (Registered Electrical Contractor)
Joiners/Carpenters
Architects/Designers
Roofers
Plumbers
Gas Engineer (Gas Safe Registered)

If planning permission is required, the cost averages £200 per application, except for Northern Ireland, where it can be £285.

Valuation FEES:

All remortgages are based on your current property value, not prospective valuations after the development is completed. The majority of lenders will include a free valuation service; however, if you want to get an independent assessment completed prior to, it will cost. The only time a future valuation may be considered is if you plan to sell the property, in which case, you’ll likely need to inquire about commercial development finance. Find the right type of funding to fund your development project.

Architect/Design Fees

This will apply to significant developments that involve structural changes. For example, an extension may be added or a room may be made open-plan. If anything you do within the boundaries of your property requires modifications to certain walls—in particular, load-bearing walls—you will need a specialist to ensure the project is completed safely while maintaining the structural integrity of your property.

Building Control Charges

Specific projects require a building control application. Subject to approval, additional building control inspections may be needed. Your local authority handles these, and depending on the work you have done, they are in addition to planning permission.

Examples Of Development Projects That Can Be Subject To

The Building Regulations 2010 Include:

Replace fuse boxes and connected electrics
Install a bathroom that will involve plumbing
change electrics near a bath or shower
put in a fixed air-conditioning system
replace windows and doors
Replace roof coverings on pitched and flat roofs
Install or replace a heating system
Add extra radiators to a heating system.”

Source: https://www.gov.uk/building-regulations-approval

Contact our experienced remortgage consultants for free funding advice.

Why Should You Remortgage?

60% of Developers Could Save Money By Remortgaging To A Better Deal. How Much Could You Save?

Remortgaging interest rates are fixed at 1.16% for at least 2 years, and subsequent rates are also low and negotiable. Please enquire today without obligation.

Light refurbishment finance

Light renovation work includes redecorating throughout your home, replastering your walls, and sometimes a new kitchen or a modern bathroom.

For kitchens and bathrooms, those can be subject to Building Control Regulations if they require modifications to the plumbing or the central fuse box (electrics). If this is the case, it may be considered as a light-to-heavy refurbishment rather than a light refurbishment.

The primary concern for kitchens and bathrooms is that they be in good working order for a home to be considered habitable. Once a kitchen is removed or there’s no functioning bathroom, the house will be classed as uninhabitable, which means it cannot obtain a mortgage.

That’s the risk to homeowners and lenders should things go wrong, and it’s partly why you need to disclose your intentions for the remortgage finance at the outset. We offer free bespoke advice from remortgage experts. Whole-of-market, custom finance options are available.

Types of Remortgages to consider

Remortgaging for property development is a long-term investment. As such, most homeowners’ primary concern is the cost of financing the project, as it is a large sum to borrow. It’s not as simple as comparing the best interest rates and opting for that as your best choice. It likely won’t be, as you should consider the type of finance you put in place.

Offset mortgage

Offset mortgages link your savings to your mortgage. You won’t be earning interest on the savings, but you will save on the repayable interest payments over the loan term. It’s similar to having a guarantor, but it is less restrictive.

Naturally, an offset mortgage will only apply to those with savings.

For example, if you need to borrow £35,000 for a property development project, you wouldn’t need to borrow all of that. You could have savings of £10,000 and, therefore, lower your equity amount by that amount, which can be used to reduce your monthly repayments or repay the loan faster. It can also be linked to one or more savings accounts, and it doesn’t have to be your own.

Some lenders allow mortgages to be offset by another family member. This is a handy option if you have parents with savings who are willing to link them to your mortgage. The savings can then lower the total amount you borrow or let you access better remortgage deals with a lower LTV ratio. The reason is that the lender provides less unsecured finance, enabling you to get cheaper interest rates.

There are a couple of potential drawbacks:

1) If the savings are relied on for the income generated from the interest paid into the account, then it could be an issue. Once it’s linked to a mortgage, it’s used to offset interest payments, so the savings stop earning interest.

2) If those savings are expected to grow with inflation, because once they are linked to a mortgage, no interest will be paid, the savings will lose their spending power. This is of more concern for longer-term finance, such as remortgaging to repay over a 20-year term.

Tracker mortgage

Trackers are great when interest rates are low. However, there’s no certainty over how long they’ll be low for. There’s added uncertainty when you enter an agreement for a tracker rate, as they can be as short as 2-year tracker deals, 3-5-year trackers, or track the base rate for the entire term of the loan.

Before entering into this type of agreement, always check the lock-in terms. It’s nearly impossible to remortgage without being locked in for a fixed period, usually 2 years. As the rate you’re borrowing will vary as interest rates rise and fall, you won’t know how much you’ll repay each month. Should the interest rates rise while you’re within the lock-in term of the loan to a level you struggle to afford and need to switch to a fixed rate, there will be early repayment charges for changing the product type.

You’ll also need to know the rate that’s being tracked, as there are two primary base rates: the Bank of England (BoE) and the London Inter-Bank Offered Rate (LIBOR). The Bank of England cut rates by 0.25% in August 2016 following the Brexit Referendum, bringing the rate to a historic low of 0.25%. The only mortgage products to benefit from the lower interest rates are either renewed with a lender that uses the Bank’s Base Rate (BBR) or are currently on a BoE tracker.

Eligibility for these types of loans depends on your risk level. BoE trackers are mostly applicable to safe borrowers, such as those with good credit scores.

As actual transactions influence the LIBOR rate by many lenders, including subprime lenders, the rates are often above the Bank of England base rate. However, at times, that can be by a fractional percentage.

Find out if a tracker mortgage will save you money, and if so, what type and how much you can borrow for your development project.

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Drop lock mortgage

This is a combination of a tracker and a fixed rate. You’ll start out on the tracker rate, which is linked to the Bank’s Base Rate(BBR). That’s set by the Bank of England or will track the LIBOR rate.

Currently, the Bank of England rate is at its lowest point in decades, so the only way it’s likely to go is up. The question nobody knows is how much it’ll move, and that’s the risk with tracker mortgages. There’s no telling how much it will vary.

Lenders now offer drop locks on their products for borrowers uncomfortable with uncertainty. These locks let you move to a fixed rate at any time during your repayment period without incurring an early repayment fee.

For those who lock into longer-term arrangements, such as a five-year tracker rate, if the interest rates rose too much and you needed to switch to a fixed rate, you’d be charged the early settlement fee. With a drop lock product, you can switch to a fixed rate based on the price at the time you trigger the fixed rate to begin, and there are no penalties for switching.

This is an option to consider for those who want to benefit from the current low interest rate but are nervous about future rate hikes. Not all lenders offer these, and comparison websites only list tracker mortgage rates without advertising which products have a drop lock available.

The only way to know all your options is to get advice from independent brokers who are Whole of Market, meaning they aren’t contracted to any lender and can access and advise on all types of mortgage options from every lender.

The same can apply to the Loan-to-Value ratios stated. For any other reason, it’ll be the advertised amount; for debt consolidation, the LTV can drop by 10%. That’s the only main difference in how your applications are assessed. You’ll still need to pass the affordability test and all other regulatory requirements for secured loans before your application can be approved.

Speak To An Expert To Get Your Free Remortgage Quote Today!

We could help reduce your monthly repayments by switching to a better remortgage deal

Mark Avery

Our Remortgage Expert

Jubilee 2000 Are Here To Help

Whatever Financial Situation You Find Yourself In, We Have The Experience And The Expertise To Assist You In Finding The Right Property Development Remortgage Product. Get in contact with Jubilee, and we’ll do our best to make sure the outcome always works out For You.

Other Remortgage Options:

Remortgages For Property Development Or Refurbishment 2026