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  • When time is a factor
  • Fast & highly flexible
  • Bridging loans
  • Can be a real lifesaver!

When to Use Re-Bridging

Where a borrower's exit strategy on a bridging loan does not go according to plan, re-bridging may be an option. But what exactly is re-bridging finance, and how does it work?

Similar to general refinancing, re-bridging involves the extension, renewal, or replacement of an existing bridging loan. If the agreed-upon term on a bridging loan is coming to an end and the borrower's exit strategy has fallen through, re-bridging offers a practical and affordable solution.

Most reputable bridging specialists are fairly flexible and will extend the term of a bridging loan if the borrower encounters repayment issues. However as elevated interest rates and default fees may apply, it can often be more cost-effective to re-bridge.

Likewise, if a lender refuses to extend a bridging loan beyond the agreed deadline, re-bridging may be essential. With re-bridging, you effectively take out a new bridging loan to pay off the expiring loan, to be repaid several months later as agreed with the lender.

If you are considering re-bridging for any reason, call bridgingfinance.com anytime for an obligation-free consultation. We will help you understand the options available and will do whatever it takes to provide you with a better deal than your current provider.

Why use UK Bridging Loans?

Personal service:

Here at bridgingfinance.com, we take customer satisfaction very seriously. That is why we go the extra mile to provide the best service possible to all of our clients.

Expert advice:

Every member of our team is highly trained and experienced in property and specialist lending products, ensuring our clients get the best products at the best rates.

Flexible lending:

We have access to many specialist lending products that can be tailored to each individual’s needs. We can offer flexible, fast, and cost-effective loans for clients with specific requirements. Deal directly with the lender; no middleman!

Proven track record:

Our track record speaks for itself through our thousands of satisfied clients. Our experience and unrivalled customer service mean that we have many returning clients with whom we have built a long-lasting relationship.

unique

Tech savvy:

We use the latest technology to ensure simplicity, speed, and ease for our clients, as well as highly trained staff to ensure everything runs smoothly.

Tailored loans:

We can tailor loans to suit whatever property funding needs our clients may present. With access to a wide range of lenders, we are able to offer specialist loans at competitive rates.

Frequently asked questions

When is re-bridging necessary?

There are several reasons why a bridging loan customer may consider re-bridging:

  • They are not happy with the interest rate on their current loan and would like to shop around for a better deal.
  • More time is needed to complete and/or sell the property they intend to use as their exit strategy.
  • Difficulties have been encountered in finding a buyer for their property, or a buyer has pulled out at the last moment.
  • The borrower wants more time to make further improvements to the property to ensure it sells for the highest possible price.

In all instances, re-bridging at the right time could prove more cost-effective than allowing an existing bridging loan to expire.

How much does re-bridging cost?

The costs of re-bridging vary from one loan to the next, in accordance with the lender's policies and the terms and conditions of the loan agreement. For example, some lenders charge an arrangement fee of anything up to 2%, while others impose no initial fees at all. Likewise, early exit fees and penalties may be payable on some bridging loans where the borrower chooses to repay the balance early with a new loan.

However, re-bridging can often pave the way for preferable interest rates due to competition in the bridging finance market. Consulting with a broker before re-bridging is essential in order to assess the most cost-effective option and find the lender that best suits your needs.

What are the options available?

Re-bridging can be approached in one of two ways:

  • Stick with your current lender: In some instances, lenders may demonstrate a great deal of flexibility, extending the terms on customers' bridging loans without heavy fees or penalties payable. Elsewhere, others impose extension fees, rearrangement fees, and higher rates of interest, which may continue to increase as the loan term is lengthened.
  • Re-bridging with an alternative lender: Oftentimes, the more cost-effective option is to take your business to a new lender. Re-bridging with a new lender could help you avoid penalty fees and elevated rates of interest while giving you as much time as you need to get your exit strategy in order. The best deals are often offered exclusively to new customers, so it is definitely worth shopping around before switching.

Contact details

pinBusiness Address: Office block 2, Kibworth Business Park, Kibworth Harcourt, Leicestershire, LE8 0EX

callTelephone:  0116 464 5554

Opening hours

Mon-Thurs: 9am-8.30pm

Fri: 9am-5pm

Sat: 10am-5pm

Sun: 11am-5pm


For job vacancies please email us on jobs@bridgingfinance.com