Mortgage rejection for dream doer-upper highlights porting and renovation funding hurdles

A couple hoping to buy a doer-upper found their plan stalled when a mortgage application was rejected after lenders flagged the extent of required renovations. The buyers had expected to port their existing mortgage to the new property, a move that can preserve a favorable rate and avoid early repayment charges, but the application was ultimately declined. The interior work would be extensive, even though the survey said the house was structurally sound, and that assessment appears to have tipped the balance for the lender.

Most mainstream mortgages offer a porting feature, which lets borrowers transfer their current deal to a new property when they relocate. Porting can be attractive if the loan is still within an early repayment charge period because it can prevent penalties that would come with setting up a brand-new product. It can also help borrowers avoid stepping up to a higher rate if market costs have risen since they first borrowed. But porting is not a guarantee. Lenders will still run their usual affordability checks and will assess the new home itself. If there have been changes in circumstances, such as a fall in income, the porting request can be refused. In practice, the decision often hinges on the property review led by the lender’s valuer and on whether the renovated home would align with the lender’s target property types.

When a renovation is involved, the scale and scope of the work matter greatly. If the job is largely cosmetic, lenders may be more comfortable with porting or with increasing an existing loan to fund improvements. If the project requires major refurbishment—to bring the home up to habitable standards, with functional kitchen and bathroom, plumbing and electrical systems, and usable services—the lender’s decision may hang in the balance. The valuer’s comments become critical, not only for the current condition but also for the property’s marketability and the lender’s security should repossession be necessary. In some cases, lenders will factor in the potential uplift in value as work proceeds, but this is not guaranteed and will depend on the lender’s policy and the project’s trajectory.

For buyers facing substantial renovations, there are alternative routes that some lenders may consider. A so‑called self-build style mortgage treats the project in stages, providing an initial amount to purchase the property with funds released at agreed milestones as the work progresses and as value increases. This approach is inherently more specialized and can require more upfront capital or a longer planning horizon. Some lenders—often smaller building societies—offer self-build or renovation products that aim to bridge the gap between purchase and completion. In addition, specialists such as Buildstore have products designed for renovations that don’t fit standard mortgage criteria.

Practically, borrowers should engage a mortgage broker and bring a detailed renovation plan, budget, and timeline to the discussion. Lenders will want to see clear costs from qualified tradespeople, a realistic schedule for completing each phase, and evidence that the completed project will improve the property’s value sufficiently to justify the financing. It may also help to obtain a formal valuation before committing to a purchase so the numbers can be tested against lender criteria early in the process. As This is Money’s mortgage expert and broker David Hollingworth notes, porting can be a useful tool, but it does not guarantee approval for every renovation scenario, and affordability checks remain essential.

For buyers who discover their dream property comes with a renovation road map, the experience underscores a broader market truth: funding a doer-upper often requires a flexible, multi‑product approach rather than a single standard loan. Prospective borrowers should evaluate the balance between current rates, potential future value, and the practical realities of the renovation work. By planning ahead, obtaining detailed estimates, and consulting with a qualified broker, applicants can identify whether porting remains viable, whether staged funding is feasible, or whether an alternative financing path offers a clearer route to ownership. This disciplined approach helps ensure that a desirable home doesn’t turn into an ill‑fated financial mismatch and that borrowers can complete the project without exposing themselves to undue risk or penalties.