How refinancing works

How refinancing a bridging loan works

Refinancing replaces an existing bridging loan with a new facility before its term runs out. Here is the process, from a term under pressure to a new facility in place.

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The four steps

From a term ending to a new facility in place

01

Your bridging loan is due

The term is ending, but the sale has not completed, a mortgage offer has not landed, or the development is not finished.

02

We assess the exit

We look at whether a sale, a rebridge, a remortgage, or development exit finance is the right route, and whether the case is regulated or unregulated.

03

We arrange the refinance

We take the case to lenders who refinance existing bridging loans, structuring the new facility around your actual position, not the original plan.

04

The new facility repays the bridge

The refinance completes, the existing bridge is repaid, and you are on a facility that matches where the deal actually is now.

Why it works

A new lender, assessed against the case as it stands now

A refinance is not a continuation of the original loan. It is a fresh case, assessed on the property's current value and a realistic new exit, which is why it can succeed even where the original exit has stalled.

The existing term is ending

Your lender's facility is approaching its final date, but the original exit, a sale or a mortgage, is not ready.

We assess the case afresh

We look at current value, loan to value, and whether the case is regulated (owner-occupied) or unregulated (commercial, investment, buy-to-let).

We place the refinance

A rebridge, a mortgage, or development exit finance is arranged with a lender whose criteria fit the case as it now stands.

The existing bridge is redeemed

The new facility completes and repays the existing lender in full, so you are no longer against the old deadline.

The result: the existing bridge is redeemed on time, default is avoided, and the facility now matches where the deal actually is.

FAQ

Refinancing a bridging loan: how it works FAQs

How does refinancing a bridging loan work?

A new facility, a rebridge, a mortgage or development exit finance, is arranged to repay the existing bridging loan before its term ends. The existing lender is redeemed in full when the new facility completes.

What are the disadvantages of a bridging loan?

Bridging is more expensive per month than a term loan, carries an arrangement fee, and depends on the exit arriving on time. Refinancing exists precisely to manage that last risk when the original exit is delayed.

Is a bridge loan ever a good idea?

Yes, where the timeline genuinely needs it: an auction purchase, a chain break, or a development nearing completion. The discipline that makes it work is having a realistic exit from day one, and a plan if that exit slips.

How much would a 200k bridging loan cost?

The cost of any bridge, original or refinance, depends on the monthly rate, the arrangement fee, the term and the security offered, so there is no single figure. Send us the deal and we will give you real numbers.

Ready when your deal is

See what refinancing would cost

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