Can I Refinance A Bridging Loan?
Can I Refinance A Bridging Loan – A Simple Guide
Find out if you can refinance a bridging loan in our simple guide. Enquire now and get the best deal with ABC Finance.
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Author: Gary Hemming CeMAP CeFA CeRGI CSP
20+ years experience in bridging loans
If you’re coming to the end of your bridging loan term and your chosen exit strategy has failed to come to fruition, you may be wondering what to do next.
The good news is that you can refinance your bridging loan to give yourself breathing space and formulate a new plan.
In this guide we break down how it works, keep things simple and explain everything you need to know.
So, can I Refinance my bridging loan?
Yes, in most cases, you can refinance a bridging loan without issue.
This type of bridging finance is a specialist area that is often known as a rebridging loan.
Not every lender will consider a refinance bridging loan, so it’s a good idea to work with a specialist bridging loan broker to ensure you find the right lender quickly and with minimal hassle.
Reasons to refinance a bridge loan
While every case is different, there are some common reasons why people choose to refinance a bridging loan. The most common ones are:
- Your chosen exit strategy has failed, for example, a sale has fallen through on your property, leaving you unable to repay the loan by the end of the loan term.
- You’re undertaking a refurbishment on the property that has taken longer than expected to complete, perhaps due to unexpected issues with the property, or delays with the planning permission process.
- Your initial term was too short and you’re unable to exit in time.
- You would like to switch to a new lender to get a better deal.
- Your current loan has high monthly payments and you would like to switch to a loan with no monthly repayments.
Is the application process different?
No, the application process is largely the same as it is when you apply for a bridging loan for the first time.
That said, your chosen lender will ask a few questions about why you’re choosing to refinance your current loan and how this situation has occurred.
If you’re at the end of your current loan term (or over it), some lenders may be reluctant to lend, while others specialise in this area.
The key is to be very honest about the situation that you’re in and how it occurred. A less than ideal situation can usually be overcome, but if something comes out that is different to what the lender has been told, that will pose a bigger issue.
Do you charge fees for arranging a refinance bridging loan?
No, like all of our bridging loans, we don’t charge any broker fees when helping a client to refinance their existing bridge.
We pride ourselves on providing great customer outcomes, so never look to capitalise on a client who is under pressure.
Read more – bridging loan to buy refurbish and sell.
FAQs
Here are some of the questions that we come across from clients in this situation.
How much can I borrow?
We offer these loans from £10,000 with no maximum loan size.
How long does it take to apply?
From the date of your application, we can usually arrange these loans in 2-3 weeks. That said, we work with some lenders who can complete in just a few days.
I have bad credit, will I still qualify?
Yes, we can still help you even if you have bad credit. In fact, we’re experts in this area, having helped countless clients get their credit history back on track since we started trading in the year 2000.
