Flip property finance refers to short-term loans designed to help investors buy, refurbish, and quickly resell a property for profit. In the UK, and particularly in London, this type of funding is commonly structured as a bridging loan or refurbishment loan, giving investors the capital to acquire properties that need modernisation before resale.
Unlike traditional mortgages, flip finance is tailored for speed and flexibility, with repayment expected once the property is sold.
Auction Purchases – Buying properties at below-market value that require upgrades.
Unmortgageable Properties – Funding homes not eligible for standard mortgages until works are complete.
Cosmetic Refurbishments – Kitchen, bathroom, and finish upgrades to boost value.
Heavy Refurbishments – Structural works or conversions that significantly increase resale potential.
Portfolio Recycling – Flipping properties quickly to reinvest in new opportunities.
Loan Term – Typically 6 to 18 months.
Rates – Interest charged monthly, usually 0.6% to 1.2%.
Loan-to-Value (LTV) – Often up to 70% of purchase price, with some lenders funding refurbishment costs.
Exit Strategy – Repayment is made upon resale of the property.
Speed – Approvals and drawdowns can be achieved within days, making them ideal for auctions.
Fast Access to Funds – Secures opportunities in competitive markets like London.
Value Creation – Enables investors to profit from renovation and resale.
Flexibility – Supports both light and heavy refurbishment strategies.
Higher Borrowing Costs – More expensive than standard mortgages.
Exit Risk – Profitability depends on a successful and timely resale.
Market Fluctuations – Changing London property values may impact expected profits.
At Fraser Bond, we provide investors with end-to-end support on flip finance projects in London and across the UK:
Funding Advice – Assessing the right loan type and term for your project.
Lender Access – Introducing clients to trusted bridging and refurbishment loan providers.
Application Packaging – Preparing cases to secure approvals quickly.
Exit Planning – Ensuring repayment is realistic through sale or refinancing.
Investment Advisory – Helping clients model costs, refurb budgets, and projected profits.
With Fraser Bond, investors can approach flip projects with confidence, supported by expert finance and property advisory. Explore tailored solutions at FraserBond.com.
