Refinance

“My bridging loan is about to expire and the property has not sold”

If a bridging loan is approaching term with no exit, the realistic options are an extension, a refinance onto another facility, a price reduction to force the sale, or a partial repayment from other assets. All of them are easier and cheaper three months before term than three weeks before.

An illustrative situation, not a client case study. It describes the kind of enquiry this market sees. Any figures are examples, not a quotation, and no credit check or lender decision is involved in reading this.

Sound familiar?

You are within a few months of the redemption date
The property has been marketed with no acceptable offer, or the refinance has stalled
Your lender has started writing to you about the term ending
You are worried about default interest

The situation

Exits slip. Works overrun, buyers withdraw, a refinance valuation comes in low, or the local market simply slows. It is common enough that most bridging lenders have a process for it — but the terms available depend heavily on how early the conversation happens.

The expensive mistake is silence. Borrowers who wait until the redemption date have almost no negotiating position and very few remaining options.

Why the usual lenders say no

A term lender will not refinance a property that does not yet meet their criteria, which is usually why the bridge exists.
An expiring facility is itself a mark against a new application until the reason is explained.
The timescale is, once again, too short for a mainstream process.

What usually works

Refinancing onto a new bridge

Bridge-to-bridge is a recognised transaction. The new lender will ask hard questions about why the first exit failed, so come with evidence rather than optimism.

A term refinance if the property now qualifies

If the works are done and the property is habitable and lettable, a buy-to-let or commercial mortgage may now be available even though the original plan was a sale.

Repricing the sale honestly

If a property has been marketed for months with no offers, the price is the problem. A 5% reduction now is usually cheaper than three more months of interest and a 10% reduction later.

Roughly how the numbers look

Illustrative figures for this situation
Standard rate example	0.85% a month
Typical default rate	Frequently double the standard rate, or more
Cost of three months at default on £300,000	Materially more than a refinance arrangement fee
Best time to act	Three months before term, not three weeks

Default terms vary considerably between lenders. Check your facility letter for the exact rate and any extension mechanism. These are examples to show the shape of a deal, not a quotation. Work out your own figures in the bridging calculator.

What we would need from you

Your current facility letter and a redemption statement
The reason the original exit did not happen
Current marketing evidence and any offers received
If refinancing: rental figures, or a decision in principle from a term lender
Details of works completed and any outstanding
A realistic view of how long the new exit needs

Things that catch people out

Read the default provisions in your facility letter now, before you need them.
An extension usually carries a fee and is at the lender’s discretion. It is not a right.
If the scheme is a completed development, development exit finance is usually cheaper than extending.

Questions we get asked

What happens if I cannot repay on the redemption date?

Interest normally increases sharply and the lender’s options widen. That is the contract rather than a threat, which is exactly why the conversation belongs months earlier.

Can I refinance one bridge with another?

Yes, and it is common. The new lender will scrutinise why the original exit failed and whether the new one is more credible, so evidence matters more than it did first time.

Is development exit finance relevant to me?

If your scheme is complete or close to it, almost certainly. It is usually priced closer to standard bridging than to development lending, because the construction risk has gone.

The product that usually fits

See how it works

Every case is different. A specialist will confirm what actually fits yours.

Rather talk now?

020 4525 4876

9:00am – 5:30pm, Monday to Friday

Keep reading

Related situations and guides

“My scheme is finished but the units are not selling and the loan is due”

Practical completion is done, some units are sold, and the development facility is approaching term.

Read the scenario

“I have found a below-market deal but the seller needs a fast completion”

A motivated seller has accepted a discounted price because you can complete quickly — but only if you actually can.

Read the scenario

Bridging loan exit strategies explained

Sale, refinance or something else: how lenders underwrite your exit, what evidence they want, and what happens if the exit slips.

Read the guide

How much does a bridging loan cost?

Every cost in a bridging loan, from the monthly rate to the fees that get added to the balance, with a worked example you can check in our calculator.